Insurance Excess
The insurance excess is the amount you pay towards a claim before your insurer covers the rest. Choosing the right excess affects your premium cost and financial exposure when filing a claim.
What Is Insurance Excess?
Insurance excess (also called “deductible”) is the contribution you make when claiming. Essentially:
- Total claim amount = amount paid by your insurer + your excess contribution
- You can select your excess level when you take out cover
How Excess Affects Your Premium
- Higher excess = lower premium: You pay more out‑of‑pocket during a claim, so insurers charge less monthly.
- Lower excess = higher premium: Less claim cost for you means the insurer charges more.
Choose an excess you can realistically afford if you need to claim.
Types of Excess
- Additional Excess: Set by the insurer, varies with policy and risk profile
- Voluntary Excess: Amount you choose in addition to the mandatory excess
- Age-based Excess: Applied to younger or novice drivers
- Standard Excess: Applies each time you file a claim
Why Excess Matters
Understanding excess is important because:
- It helps you balance monthly premium savings against potential claim costs
- You avoid surprise expenses by budgeting for your excess
- Knowing excess terms ensures you're fully prepared before a claim
How to Choose the Right Excess
- Assess your financial buffer—choose an excess you can cover easily
- Compare premiums for different excess levels to find value
- Consider risk factors (e.g. location, driving history) that may affect excess amount
Tips to Save on Premiums Without Raising Excess
- Bundle your home, car, and contents insurance for mult-policy discounts
- Install security devices (alarms, trackers) to reduce insurer risk
- Maintain a clean claims history to qualify for no-claim rebates
- Agree to make small repairs yourself instead of claiming minor damage