Car insurance excess is the amount of out of pocket expense you are required pay each time you file a claim where your insurance company is covering the cost of your repairs.

The amount of excess is predetermined by you and your insurance company at the start of your policy. Most insurance companies will agree to allow you to pay the excess amount directly to the garage making the repairs on your vehicle or to have it deducted from the amount settled to you.

If you are involved in an accident that is another motorists fault you can usually get the excess amount waived or have it reimbursed to you by the other drivers insurance company.

There are many motorists on the road that are not insured or do not carry enough insurance to pay for all the repairs or medical costs you incur due to the accident. It is illegal to drive without insurance but many people do. In these cases you might have to pay a larger amount to have your vehicle repaired or to pay for medical expenses. If your insurance company protects you from underinsured or uninsured motorists you will be able to treat the claim as any other and simply pay the excess amount agreed upon and have the insurance company pay the rest.

There are approximately 5% of vehicles being driven without insurance in the UK. These people create the need for insurance companies to offer the underinsured or uninsured motorist protection and it can drive up the cost of our premiums as well as the agreed excess amounts we have to pay.

A compulsory excess is the lowest excess payment your insurer will accept for your policy. The amount they will offer you will be factored by your driving record, age, type of vehicle you own, as well as experience driving. More mature drivers who have years of experience and a clean driving record can get excess payments as low as $50 while younger more inexperienced drivers with a clean driving record can pay as much as $500 or $1000.

Voluntary excess is the amount you offer to pay the insurer in the event of a claim. You may be qualified to receive a very low excess payment on your policy but by increasing it you are able to lower the monthly premium payment. You can discuss the options with your agent and find the number you are comfortable with. It should be low enough you can afford it but not so low that it raises your premiums too high.

If you place your vehicle in the garage for repair and have filed a claim with your insurance company you can expect that the payment of the excess will need to be made before your vehicle is released. Even if the insurance company has already supplied payment for their part of the repairs the garage can hold it until you pay the final portion of the bill. So be sure not to have such a high excess amount that you will have trouble coming up with it when you need to.