Excess is the amount you’ll have to pay towards any claim that you make to your insurance provider.
Excess is broken down into compulsory excess and voluntary excess. The total excess on your policy is the compulsory and voluntary excess added together.
Compulsory excess is the amount you’ll have to pay to the insurance provider if you need to make a claim on a policy.
Voluntary excess is the amount you can add to your compulsory excess. This can help to reduce the price of the insurance premium, so you pay a lower amount monthly or annually. But, you’ll have a higher amount to pay if you need to make a claim.
For example, you may make a claim for £1,000 but have an excess of £200. This means that you must pay the first £200 of the claim and the insurance company will pay the remaining £800.