A high voluntary and compulsory car insurance excess could make your car insurance cheaper, but it’ll increase your costs when you make a claim.
If you need to make a claim on your car insurance, the excess is the amount you agree to pay towards the claim. It’s made up of two parts - compulsory and voluntary.
You only pay the excess for your losses and when you’re at fault. For example, if you’re responsible for an accident and damage your car. But there are exceptions.
The compulsory excess is set by the insurer. It’s based on the make, model, age and condition of your car.
You choose your voluntary excess when you take out a policy - it's the amount you agree to pay on top of the compulsory excess.
You don’t have to add a voluntary excess, but it usually lowers your premiums if you do. The higher your excess is, the bigger the discount.
You’ll have to pay both to make a claim.
“Make sure you can afford the excess you choose - assume you’ll have to pay the excess straightaway, even if you’re not at fault”Matt Oliver, GoCompare’s car insurance expert
Last checked 27 August 2019
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