What Are Total Excess Charges on Car Insurance? A Plain-English Guide
Published 27th of December 2013·Updated 14 April 2026
Reviewed by: Reviewed for accuracy April 2026
Your total excess is the amount you must pay towards any car insurance claim before your insurer covers the rest. It is made up of two parts: a compulsory excess set by your insurer and a voluntary excess you choose yourself. If your total excess is £500 and your claim is worth £3,000, you receive £2,500.
Short Summary
Your total excess is the sum of your compulsory excess and your voluntary excess. You cannot negotiate the compulsory part; the insurer sets it when you buy the policy.
Choosing a higher voluntary excess lowers your monthly or annual premium, but it increases how much you pay out of pocket if you need to claim.
The excess only applies to damage to your own vehicle. If you cause an accident, your insurer pays the other party's costs in full with no excess deducted.
If your total excess is higher than the value of your vehicle, you are effectively paying for third-party cover only, even if you hold a fully comprehensive policy.
What is the difference between compulsory and voluntary excess?
Your compulsory excess is fixed by your insurer at the point of sale. It varies depending on your age, vehicle type, and driving history. Young or new drivers typically face a higher compulsory excess because insurers consider them higher risk.
Your voluntary excess is chosen by you at the start of the policy, usually anywhere between £0 and £1,000. Agreeing to pay more voluntarily signals to the insurer that you are less likely to make small, low-value claims. In return, the insurer reduces your premium.
Add both figures together and you get your total excess. For example, a £200 compulsory excess plus a £300 voluntary excess gives a total excess of £500.
When does the excess apply?
The excess applies when you make a claim on your own policy. Common situations include an at-fault accident, theft of your vehicle, fire damage, or vandalism. If the accident was not your fault and the other driver's insurer accepts liability, you should receive the full payout with no excess deducted.
If you cause an accident and a third party is injured or their vehicle is damaged, your insurer covers those costs in full. The excess only reduces the payout for damage to your own property.
What happens if my excess is more than the repair cost?
If your total excess exceeds the cost of repairs, you receive nothing from your insurer and must cover the full repair bill yourself. This is a common trap. For example, a £1,000 total excess on a car worth £800 means the insurer pays out nothing for damage to your vehicle, leaving you with comprehensive insurance that offers you no more protection than a basic third-party policy for that claim.
Before choosing a high voluntary excess to reduce your premium, check that you could comfortably afford to pay that amount if you needed to claim.
How does the excess affect my premium?
Higher excess generally means a lower premium. The table below gives a rough illustration of how voluntary excess choices affect annual premiums for a typical driver (figures are illustrative; your actual quote will vary).
| Voluntary excess | Estimated annual premium impact |
|---|---|
| £0 | Highest premium |
| £250 | Moderate saving (typically 5-10%) |
| £500 | Larger saving (typically 10-20%) |
| £1,000 | Maximum saving, but significant out-of-pocket risk |
Use a comparison site such as Compare the Market or MoneySuperMarket to see the exact premium difference for your policy before committing to a higher excess.
Which types of insurance include an excess?
All three levels of car insurance can include an excess:
| Insurance type | Covers own vehicle damage | Excess applies to own vehicle |
|---|---|---|
| Third party only | No | N/A |
| Third party, fire and theft | Yes (fire and theft only) | Yes |
| Fully comprehensive | Yes | Yes |
Third-party-only policies pay out for damage to other people's vehicles and property, but not your own. There is no excess to apply to your own vehicle because the insurer never pays for it.
FAQ
What is total excess on car insurance?
Total excess is the combined amount of your compulsory excess (set by your insurer) and your voluntary excess (chosen by you). It is the sum you pay towards a claim before your insurer covers the remainder. If your compulsory excess is £150 and your voluntary excess is £350, your total excess is £500.
Can I choose to have zero excess?
You can set your voluntary excess to £0, but you cannot remove the compulsory excess. Even with a £0 voluntary excess, you will still pay the compulsory portion towards any claim. Setting voluntary excess to £0 gives you the highest premium but the lowest out-of-pocket cost when claiming.
Does excess apply if the accident was not my fault?
Generally, no. If the other driver's insurer accepts full liability, they pay your repair costs directly and you pay nothing. However, if liability is disputed or you claim through your own insurer while fault is being decided, you may need to pay the excess temporarily; you should get it refunded once the other party is found at fault.
Should I choose a high voluntary excess?
Only if you have enough savings to cover the excess comfortably. A high voluntary excess reduces your premium but leaves you exposed to a large bill when claiming. If you drive frequently or live in a high-risk area, a lower excess may offer better value overall.
Will making a claim affect my no-claims bonus?
Yes, in most cases making a fault claim will reduce your no-claims bonus, which can increase your premium at renewal. Some insurers offer no-claims protection as an add-on, which lets you make a limited number of claims without losing your discount. Check your policy documents for details.
Does the excess apply to windscreen claims?
Many policies treat windscreen damage separately with its own, lower excess. Check your policy schedule because windscreen repair (as opposed to full replacement) is often covered with little or no excess on comprehensive policies.