Excess and Voluntary Excess Charges
Excess
Excess is the amount of money your insurer requires you to pay towards the costs if you have an accident and have to make a claim. For example, if your excess is set at £100, you will have to pay the first £100 towards the garage repair bill and the insurer pays the rest.
Young driver excesses are often compulsory with many companies as people under 25 are generally considered by insurers to pose a greater hazard than older and more experienced motorists (a hazard being the criteria likely to affect any loss damage or injury).
The type of car you drive can make a difference and an expensive or high performance car is considered more of a risk to the car insurance company than a small family runaround. Not only because it might be thought more likely to be involved in an accident, but also because in the event of an accident it may be more costly to repair.
The area in which you live may also have a bearing on the amount you have to pay. People living in areas where a high volume of traffic increases their chances of being involved in an accident can expect to pay more, as can those living where a high crime rate poses a greater than average risk of car theft or a break-in.
Excess charges vary from insurer to insurer, so you may find that the companies offering insurance cover at the lowest possible prices may well require you to pay that little bit more if you make a claim.
What the most appropriate level of amount of excess is, of course, down to each individual driver.
If you want to lower the cost of your insurance cover, it can work to your advantage if you actually offer to pay a higher excess charge than would usually be required by the insurer. This is called paying a Voluntary Excess.
Voluntary Excess
Voluntary excess is when you agree to pay a higher excess charge than the car insurance company would normally ask. For example, if the usual excess in the event of a claim is £100, you might volunteer to pay the first £200 instead.
The fact that you are prepared to pay more towards footing the bill after an accident makes you less of a risk to them if you have an accident.
In return you will receive a lower premium when you compare car insurance quotes.