Been in an accident and need to make a claim, but don’t know the ins and outs of car insurance excess? Follow AXA’s easy excess explainer guide.
The chances are you’ve heard about excess when it comes to your car insurance. But if you’ve been in an accident, making a claim is stressful enough without having to make sense of your car insurance excess cover too.
To put it simply, your excess is the amount of money you have to pay towards making a claim on your car insurance.
But how does excess work exactly? What’s the difference between compulsory and voluntary excess? And how does this all impact the cost of your insurance?
Read on for the AXA guide to car insurance excess.
How does car insurance excess work?
Alongside the monthly or annual price of all motor insurance policies is the excess – this is the amount you need to pay towards any claims.
As a basic example, if you make a claim for £1000 and your excess is £250, you’ll be expected to pay £250 of the costs, while your car insurance provider pays the other £750.
If you’re involved in an accident you’ll need to pay your excess, even if the accident isn’t your fault. In those cases, however, you may be able to recover your excess from the person responsible if you have legal expenses or uninsured loss recovery as part of your policy. Check the terms and conditions of your insurance policy for more information.
What is compulsory excess?
Compulsory excess is sometimes referred to as ‘mandatory’ excess. It’s the amount set by your insurer that you’ll have to pay in the event of a claim.
Compulsory excess is applied to your policy no matter what. If you’re a young or inexperienced driver or have a high-performance car, your compulsory excess might be higher.
What is voluntary excess on car insurance?
Voluntary excess is what you choose to pay towards any claim in addition to your compulsory excess. If you pick a higher voluntary excess, your insurance may cost less. But if you make a claim, you'll pay more out of pocket. Choose an amount you can afford in case you need to make a claim.
Do younger drivers get charged a higher excess on car insurance?
Younger drivers, typically those under the age of 25 years old, might be charged higher compulsory excess on their policy. This is because younger drivers are seen as more likely to be involved in an accident due to their lack of experience.
Remember, both compulsory and voluntary excesses add up. A higher voluntary excess can lower your premium but might result in paying more if you make a claim.
How does windscreen cover excesses work?
Windscreen repairs or replacements usually cost less, so the excess for windscreen claims is lower. There are also different excesses between windscreen repair and windscreen replacement, with repair excess again being lower. If your windscreen needs fixing, the approved repairer will usually ask for payment at the time or when the work is done.
It’s also worth keeping in mind that voluntary and young driver excesses do not apply to windscreen excesses. Additionally, while windscreen cover is included as standard in our comprehensive cover, it isn’t included in third-party, theft and fire coverage.
How much is the usual car insurance excess?
When you get a quote from AXA, the excess amount will be shown. It depends on:
- Your age
- How long you’ve held a full licence
- The make and model of the vehicle you’re looking to insure
- The type of cover you choose – third party, fire and theft policies usually only have a single excess for fire or theft claims
You can get a quote to see how much your insurance will cost and what excesses apply.
Should I increase my voluntary excess?
If you want to pay less for insurance and can afford to pay more if needed, increasing your voluntary excess might help.
It can lower your premium. But, if you make a claim, you’ll pay more out of your pocket.
Only choose a higher voluntary excess if you can afford to pay that amount if needed.
Why is an excess included on my car insurance policy?
Excess helps prevent drivers from claiming for small bumps and scratches. This keeps insurance costs down for everyone.
It also helps keep premiums affordable by reducing small claims.
Do I always have to pay the excess?
Usually, yes. You must pay your excess after a claim.
But, if you've got comprehensive cover with AXA and we can establish that the claim was not your fault, we’ll refund this back to you. Just make sure to get the make, model and vehicle registration of any other vehicle involved in the incident. We’ll use this to confirm that you weren’t at fault for the claim.
When do I have to pay a car insurance excess?
If you've got comprehensive cover you’ll be responsible for paying your total excess (compulsory plus any voluntary or young diver excesses) for the following things:
- Fire damage
- Theft
- Write-offs
- Accidents where you are the party at fault
If you have third-party, fire and theft cover, you’ll have a flat excess applied for your fire and theft excess.
You’ll usually be asked to pay your total when you start a claim. However, in some cases, the cost of your excess may be deducted from the total bill for all repairs, in which case you can pay it at the end of your claim.
If you can’t afford to pay the excess, ask your insurer about payment plans or options. In other cases, your insurer may refuse to process your claim or release your car until the amount is paid. To stop this from happening, always be aware of the amount of excess you’re committing to with a policy, and don’t set your voluntary excess too high.
Who pays the excess if I’m in a car accident?
You pay the excess yourself, but in some cases you can get it back.
If the other driver doesn’t have insurance and you have comprehensive cover, AXA’s uninsured driver promise can help you. It won’t affect your no claims discount either. However, you may have to pay your excess, and your NCD may be affected until we establish that you were not to blame for the accident.
Remember, making a claim may increase your future excess or affect your no-claims bonus.
At AXA, we want to make your journey as smooth as possible. And even if the worst happens and you have an accident, we aim to make claims simple and quick so you can get back on the road.
If you need to make a claim, follow these easy claims tips to help you through the process.