An excess is the amount a policyholder is liable to pay towards any claim. It usually has to be paid to the garage where a vehicle has been repaired before the vehicle can be collected. In the event of a total loss, the excess will be deducted from the settlement cheque the policyholder receives. The excess figure is a combination of the Compulsory Excess and Voluntary Excess (where selected).
Compulsory Excess
A compulsory excess is imposed by the insurer and cannot be be removed from the policy. Additional compulsory excess may apply whilst a vehicle is being driven by a specific person i.e. young driver. They may also be applied for specific vehicle types. Most comprehensive policies now carry a compulsory excess. In the event of a claim this excess applies in addition to any voluntary excess selected by the client.
Voluntary Excess
A voluntary excess is an additional amount the policyholder chooses to pay in the event of a claim in order to achieve a reduction in their premium. In the event of a claim the voluntary excess will be added to any compulsory excess that applies to the policy.
