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Glossary • Definition

What is an insurance excess?

An excess is the amount you agree to pay towards a claim before your insurer contributes. Understanding how excess works helps you compare policies properly — not just by price.

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  • ✔ Plain-English explanation
  • ✔ Real-world examples
  • ✔ Checklist before choosing

In simple terms

If your policy has a £300 excess and you make a claim worth £1,000, you usually pay the first £300 and the insurer covers the remaining amount (subject to terms).

  • Higher excess often lowers your premium
  • Lower excess usually increases your premium
  • Always check the total excess, not just one part

Types of excess

Compulsory excess

Set by the insurer and cannot usually be changed. It may vary depending on age, experience, or claim type.

Voluntary excess

An additional amount you choose to add to reduce the premium. Only select a level you could realistically afford if you needed to claim.

Total excess

The combined amount of compulsory and voluntary excess. This is the number that really matters when comparing policies.

Claim-specific excess

Some policies apply different excess levels for certain drivers or types of claims. Always check the policy wording.

Why excess matters when comparing quotes

Not all cheap quotes are equal

A low premium may come with a high excess. Make sure you compare policies using similar excess levels.

  • Check total excess amount
  • Compare like-for-like cover levels
  • Make sure the excess is affordable
  • Review add-ons and exclusions too

Where you’ll see excess used

Home insurance

May vary between buildings, contents, and accidental damage claims.

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Life insurance

Life policies typically don’t use excess in the same way as general insurance.

Life guides →

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