Excess Car Insurance in the UK

Increasing your car insurance excess is an excellent means of reducing the overall cost of an insurance premium. Although automotive insurance is a legal requirement in the UK, the price of an individual policy can be significantly lowered by the policy holder taking on a greater share of the financial risk involved in the insurance agreement.

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Excess is an agreed payment that must be made by the policy holder in the event of repair work being carried out to their own car or to the vehicle of any third party involved in an accident where the policy holder is at fault. Once costs for repair work have been agreed, the insurer will only pay out for the full cost of any subsequent repair minus the contribution agreed upon by the policy holder. If the accident is the fault of the other driver, the costs of any excess payments are usually reclaimed from their insurance company.

There will be those who have committed to higher levels of car insurance excess that will, unfortunately, become involved in an accident with another driver who does not have valid UK insurance. Under these circumstances, the Motors Insurance Bureau will help to cover the costs of repair to the insured vehicle but the car insurance excess must still be met by the driver. Almost 5% of all vehicles in the UK are being driven around without the mandatory insurance required.

There are two different types of car insurance excess to consider; compulsory excess is a set fee determined by the insurance company and this figure will be set against driving histories, age and the type of vehicle being insured. Voluntary car insurance excess allows the policy holder to increase their own level of risk so that the insurer lowers the price of the premium.

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