Insurance Excess Explained — and Should You Claim?
Your excess is what you pay towards a claim before the insurer pays the rest. Below: a plain-English explainer, then a free calculator that tells you whether claiming actually leaves you better off once the impact on future premiums is counted.
Quick answer
Total excess = compulsory excess (set by the insurer) + voluntary excess (chosen by you). Claiming is only worth it when the repair cost, minus your total excess, comfortably exceeds the extra premium you will pay at future renewals.
Compulsory excess
Fixed by the insurer based on the policy and risk. You cannot remove it. It always applies to a claim.
Voluntary excess
An extra amount you choose to take on. A higher voluntary excess usually lowers your premium — but only pick what you could afford to pay at claim time.
“Should I claim?” calculator
- Total excess (compulsory + voluntary)
- £0
- Insurer pays after excess
- £0
- Estimated future premium cost
- £0
- Net benefit of claiming
- £0
Illustrative arithmetic on the numbers you enter — not advice or a quote. Your real premium impact depends on the insurer and your circumstances.
Compare cover & excess optionsInsurance Excess FAQs
What is an insurance excess?
The excess is the amount you pay towards a claim before the insurer pays the rest. If you have a £250 excess and make a £1,000 claim, you pay £250 and the insurer pays £750. The excess is how insurers share the cost of small claims and keep premiums lower.
What is the difference between compulsory and voluntary excess?
Compulsory excess is set by the insurer and you cannot change it. Voluntary excess is an extra amount you choose to add on top — accepting a higher voluntary excess usually lowers your premium, because you agree to carry more of any claim yourself. Your total excess is the two added together.
Is it worth claiming on my insurance?
Work out what the insurer would actually pay (your claim minus the total excess), then subtract the extra premium you expect to pay at future renewals after a claim. If the repair cost is close to your excess, or the future premium rise is large, paying for the repair yourself can leave you better off. This calculator does that arithmetic for you.
Does a higher voluntary excess always save money?
A higher voluntary excess usually reduces your premium, but only choose an excess you could comfortably afford to pay if you had to claim tomorrow. Saving £30 a year on premium is a false economy if you could not find a £600 excess after a loss.
How long does a claim affect my premium?
Insurers typically ask about claims for the past three to five years, so a single claim can raise your premium at several renewals and may reduce or reset a no-claims discount. The calculator lets you set how many years you expect the higher premium to last.