Having car excess cover in place can take a weight off of your shoulders if you are involved in a road traffic collision and need to make a claim on your comprehensive car insurance. When you make a claim, you will usually have to pay an excess amount decided by your insurer, which can range from £250 to £1000 (or more). Having excess insurance in place can take this financial stress away, ensuring you don’t have to pay a lump sum. But what is excess insurance, and how can it further benefit you?
In this guide, we will explore the ins and outs of car excess insurance, how to choose the best policy that suits your needs, and how you can understand more about the insurance before committing to a policy.
Car insurance excess is the amount you agree to contribute towards a claim on your motor insurance. If repair costs are below your total excess, you must pay the full amount, but it won’t count as a claim. If the costs exceed your excess, you pay your share, and the insurer covers the rest.
There are two types of excess: compulsory (set by the insurer) and voluntary (an amount you choose to pay on top). Together, they make up your total excess. Increasing your voluntary excess can reduce your premium, but you’ll have more to pay in the event of a claim. Some insurers may only offer a combined total excess, but a compulsory amount is always included unless explicitly stated otherwise.
You are required to pay your total excess before receiving an insurance payout. To avoid high excess payments, some drivers choose providers offering zero excess cover or purchase excess cover insurance, which reimburses these costs.
At ALA, we offer a competitively priced excess cover policy starting at £23.86 per year. It reimburses your compulsory and voluntary excess after you’ve paid it to your main insurer. You can claim multiple times, making it a cost-effective solution.
We will reimburse your excess on valid claims unless:
Our policies are available for cars, motorhomes and vans with no age, mileage, or weight restrictions. They’re suitable for financed or privately owned vehicles, provided they have comprehensive cover.
Excess cover isn’t mandatory, but it’s useful, especially for younger or less experienced drivers who may have higher excesses. It can be more affordable than lowering your excess on your standard policy, and can save significant out-of-pocket expenses when making claims.
Common myths include:
You can find out more about excess cover in our previous guide here.
Motor excess insurance is a useful form of cover designed to reimburse you for the compulsory or voluntary excess paid when making a claim on your car insurance. This type of policy offers valuable financial protection and peace of mind, particularly for those looking to reduce the high costs often associated with car insurance claims.
Excess insurance helps reduce out-of-pocket expenses during a claim. While setting a high voluntary excess can lower your annual premium, it increases the amount you must pay if you make a claim. An excess policy bridges this gap. It can be especially beneficial for young or inexperienced drivers, who typically face higher excesses. You can make multiple claims within your set limit over the policy term.
ALA is a standout provider, known for its comprehensive, flexible, and customer-friendly approach. When compared with providers like Protectyourthings and Easy GAP, ALA remains competitive on price while offering more inclusive policy conditions. For example, a £250 claim limit costs £23.86 with ALA, closely matched by others, but ALA offers broader cover without restrictive conditions such as vehicle age or mileage limits. To see for yourself, start building your excess cover quote here.
At ALA, we boast award-winning service, with a 4.9-star Trustpilot rating from over 19,000 reviews and recognition from the UK Customer Experience Awards. Policies include a 30-day cooling-off period and no admin fees for amending, transferring or cancelling a plan.
Car insurance excess is the amount you must pay towards a claim before your insurer covers the rest. It typically includes a compulsory excess (set by your insurer) and a voluntary excess (chosen by you). While increasing your voluntary excess can lower your premium, it may lead to higher out-of-pocket costs when you need to claim.
The total excess must be paid upfront when making a claim. If repair costs are less than your excess, the insurer won’t contribute. In certain cases, such as fire damage, total loss, or windscreen repairs, the excess may be higher than usual. Choosing the right excess amount is key to balancing affordable premiums with manageable financial risk during a claim.
Examples show how high excesses can reduce the insurer’s contribution significantly. For instance, if your repair costs £385 and your excess is £350, you’d only claim £35, or choose to pay in full and protect your no claims bonus. With excess cover, however, you can recover your full excess, making it easier to justify a claim.
There’s no fixed rule for setting your voluntary excess, but a good guideline is no more than 10% of your monthly take-home pay. If your insurer already sets a high compulsory excess, it may be better to select a lower voluntary amount to keep potential claims affordable.
Car insurance excess cover offers reimbursement for your paid excess in the event of a claim. It can be especially beneficial if you opt for a high excess to lower your premium. Providers like ALA offer affordable policies starting at just £23.86 per year, allowing multiple claims up to your chosen limit. It’s often cheaper and more flexible than selecting a zero-excess policy from your car insurer, making it a smart option for many drivers.
To understand more about car excess cover, read our previous guide here.
At ALA, we provide excess insurance protection with no restrictions on vehicle age and mileage at the start of the policy. Our policies cover vehicles purchased privately or from a seller, whether they have been bought outright, on finance or leased. Starting from just £26.86 a year, start building your excess cover quote to protect yourself from the unexpected.
Car Excess Insurance
Short Term Motor Insurance
Scratch and Dent Insurance
Tyre & Alloy Wheel Insurance
Cycle Insurance
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