How to choose · Car insurance
How to choose the excess or deductible on a car policy
Last updated 25 October 2026 · 3 sources listed · Reading time about 4 minutes
Short answer
The excess is the portion of each claim you pay before the insurer pays anything. Raising the voluntary part usually lowers the policy charge but leaves you funding more of every loss. Compulsory excesses set by the insurer for factors like age or vehicle type sit on top. A sensible choice rests on how easily you could pay it on short notice, how often claims are plausible, and whether separate excesses apply to glass or theft.
Who this is for: A policyholder who has been offered a choice of voluntary excess and wants to understand the trade-off without being told what to pick.
What to evaluate
Cash accessibility
An excess you cannot pay promptly can stall repairs or push you to abandon a legitimate claim.
How to check: Ask whether you could pay the figure from available funds within days of an incident, without borrowing.
Compulsory plus voluntary stacking
Most policies add what you choose to a fixed excess set by underwriting, so the total is larger than the number you selected.
How to check: Locate the schedule line showing the combined amount payable per claim type.
Claim type variation
Windscreen, theft, fire and accident sections can each carry their own excess.
How to check: Compare the excess table across every section, not only the accident row.
Small-claim economics
A high excess makes minor damage claims pointless, so you effectively self-insure scrapes and dents.
How to check: Think about repair costs for common minor damage and whether you would claim above the excess.
Claim-record effect
Making a claim, even a small one, can affect future pricing and no-claims status regardless of excess.
How to check: Ask how the insurer treats small claims, and whether protected no-claims options exist.
Excess protection products
Standalone policies can reimburse the excess, but they have limits, exclusions and their own costs.
How to check: Read the cap, the claim count allowed, and whether it pays before or after the main claim settles.
Comparison
| Approach | Good when | Watch out for |
|---|---|---|
| Low voluntary excess | You want predictable out-of-pocket costs and expect to claim for minor damage | The policy charge is usually higher for the same cover |
| Moderate voluntary excess | You hold a savings buffer and want balance between cost and exposure | Stacked compulsory excess can make the real figure larger than assumed |
| High voluntary excess | You rarely claim and could comfortably self-fund repairs | Small incidents become unclaimable, and cash needs may arise at a stressful moment |
| Separate excess protection policy | You prefer to transfer excess risk to another product | Duplicated cost and conditions that may mirror those of the main policy |
Decision worksheet
Rate up to three options against this guide’s own criteria. It runs in your browser and saves only on this device. It is a thinking aid, not a recommendation.
1. Have you checked each criterion?
0 of 6 criteria checked.
2. Compare options (0 = fails or unknown, 3 = meets it well)
| Criterion | |||
|---|---|---|---|
| Cash accessibility | |||
| Compulsory plus voluntary stacking | |||
| Claim type variation | |||
| Small-claim economics | |||
| Claim-record effect | |||
| Excess protection products | |||
| Total (max 18) | 0 | 0 | 0 |
Questions to ask before you commit
- What is the total excess I would pay for an at-fault accident, once compulsory and voluntary parts are added?
- Is there a different excess for glass, theft, or fire claims?
- Does the excess apply when another party is clearly liable and I am reimbursed later?
- Do additional drivers or inexperienced drivers trigger a higher excess?
- Can I change the voluntary excess mid-term, and does it affect the policy charge?
- Is the excess paid to the repairer, to the insurer, or deducted from a settlement?
- What happens to the excess I paid if the insurer recovers costs from the other party?
Typical trade-offs
Raise the voluntary excess
- Upside
- Typically reduces the periodic cost of cover and signals low claim intent.
- Downside
- Leaves you paying more per incident, which can be hard in a stressful situation.
Keep the excess low
- Upside
- Makes small and medium claims worthwhile and improves access to repairs.
- Downside
- You pay more for the policy across every renewal, whether or not you claim.
Buy separate excess reimbursement
- Upside
- Shifts the cash burden to another provider after a loss.
- Downside
- Adds a second contract with limits, and you must claim from it separately.
Common mistakes
- Selecting a high excess to reduce the policy charge without checking that the cash would be available. Keep a ring-fenced amount if you do.
- Reading only the voluntary figure and missing the compulsory excess. Always find the combined number on the schedule.
- Forgetting that a low-value claim can still affect your record even if you paid the excess. Check the insurer's small-claim rules.
- Assuming the excess is refunded when the other driver is at fault. Refunds depend on recovery, which can be slow and incomplete.
- Overlooking separate glass excess when comparing quotes, which distorts like-for-like comparisons.
Related questions
Does a higher excess always reduce the policy charge?
In most pricing models it does, because you absorb the smallest claims. The reduction is not uniform though, and at some point further increases deliver little extra saving. Insurers also cap how high the voluntary portion can go. Compare actual quotes at several levels, and weigh the saving against the risk of facing a large payment at an inconvenient moment. It also helps to compare the practical consequences, such as how long repairs might take and whether a replacement vehicle is provided, rather than looking only at the headline terms.
Is the excess due even if the accident was not my fault?
Often you must pay it up front if you claim on your own policy, then try to recover it from the at-fault party through the insurer. Recovery is not guaranteed, particularly if the other driver is untraced or uninsured. A legal expenses add-on can assist, but read what it covers and what limits apply. Ask the insurer to put the answer in writing, because wording that sounds equivalent in a phone call can differ in the contract, and the written terms are what decide any later dispute.
Can I get my excess back through another policy?
Standalone excess reimbursement products exist and pay out when you claim on the main policy. They have limits per claim, exclusions that mirror those of the underlying cover, and they cost extra. Evaluate whether the combined cost of both products compares sensibly with simply choosing a lower excess on the main policy. Keep a copy of the policy schedule and booklet with your records, since the version in force when the incident occurred is the one that governs how the claim is treated.
Do windscreen claims use the same excess?
Frequently not. Glass sections usually have their own, typically smaller, excess and may allow repairs rather than replacement at lower charge. Some insurers treat glass claims as non-fault and do not count them against your record, but this varies, so check the policy wording. It also helps to compare the practical consequences, such as how long repairs might take and whether a replacement vehicle is provided, rather than looking only at the headline terms.
Sources and further reading
These pages were reachable when we last checked. They informed definitions and rules referred to above; they do not endorse this guide. Where rules differ by country, check the authority for your location.
- Insurance Information Institute — Insurance Information Institute, retrieved 27 October 2026
- Information for consumers — Financial Conduct Authority, retrieved 27 October 2026
- Financial Ombudsman Service — Financial Ombudsman Service, retrieved 27 October 2026
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