How to choose a voluntary excess on car insurance
What is voluntary excess?
Voluntary excess is an amount you choose to add on top of your compulsory excess in exchange for a lower annual premium. When you make a claim, both apply. You need to be able to afford both amounts at the time of a claim.
How to decide on the right level
There are three questions to ask:
- How much premium saving does each excess level offer? Get quotes at two or three different excess levels to see the difference.
- How many claims might I realistically make in a year? If you have a clean record and park in a secure area, you may claim infrequently. If your circumstances are different, a lower excess may suit you better.
- Could I comfortably pay the full excess from savings at short notice? Do not set a voluntary excess higher than you could afford to pay without hardship.
Use our calculator
Our voluntary excess calculator lets you enter your actual premium quotes at different excess levels and calculates the break-even point — the number of claims at which the higher excess stops saving you money over a given period.
Common mistakes
- Setting a high excess to get a cheap quote, then struggling to pay it when a claim arises.
- Forgetting that compulsory and voluntary excess both apply to every claim.
- Not getting quotes at multiple excess levels — the saving can vary significantly.
Frequently asked questions
Common voluntary excess options range from £0 to £500 or more. Higher excesses generally produce bigger premium savings but increase your out-of-pocket cost if you claim. The right level depends on your circumstances, not a fixed rule.
Typically you cannot change your voluntary excess mid-policy without cancelling and restarting. Changes at renewal are straightforward — your insurer should allow you to adjust the voluntary excess when you renew.
Your no-claims discount is affected by whether you make a claim, not by the level of excess you set. However, a higher voluntary excess may make you less likely to make a small claim, which in turn helps preserve your NCD.
Related calculators
Car insurance
Voluntary Excess Calculator
Compare the cost trade-off between lower and higher voluntary excess on car insurance.
Car insurance
Comprehensive vs Third Party Calculator
Weigh up comprehensive cover against third party, fire and theft for your vehicle.
Car insurance
No-Claims Discount Value Calculator
Estimate what your no-claims discount is actually worth and whether to protect it.
Disclaimer
This is a simplified estimate based on the assumptions shown above. It isn't a quote, and a real insurer may arrive at a different figure. Use it as a starting point, then check the details with your insurer or adviser.