When you get a quote for car insurance, you’ll be presented with a monthly premium and an excess amount. The two are linked in what could be described as a seesaw relationship, whereby the excess amount can cause your premium to decrease or increase simply by choosing a higher or lower excess.

Before we dive into the wisdom of using your excess to change your premium, let’s delve into how a car insurance excess could impact your premium, how your excess is calculated, and which additional car insurance excesses might apply to you.

Here’s a rundown on the what, the how, and the how much when it comes to your car insurance excess.

Just A Reminder

The standard or ‘basic’ excess is defined as the uninsured portion of your loss. It’s this amount that you’ll pay when you put in a claim for any form of loss involving the vehicle noted on your insurance policy.

What some people aren’t aware of or fail to remember is that this excess is payable even if the reason why you’re claiming isn’t your fault. What can come as an even bigger shock is to discover that there are additional excesses that you need to pay. Sometimes on top of your standard excess.

The Additional Excesses That Could Apply To You

While the standard excess is, well, standard, there are additional excesses that could apply depending on the insurance company you go with and your own personal information.

These additional excesses could include:

1. Inexperienced Driver Excess – An excess payable when the driver is 25 years old and has less than 2 years of driving experience.
2. Unlisted Driver Excess – An excess payable when the driver is under 25 years old and isn’t listed on the policy.
3. Special Excess – There may be special circumstances that require an additional excess above the standard excess, like a luxury car.

How Excesses Are Calculated

The excess amount that an insurance company presents you with is calculated based on a variety of personal factors, including the car you drive, where you live, how you use your car, the measures you’ve take to look after and safeguard your car, how old you are, and your driving experience. All of this data makes up your risk profile – an assessment of how risky you are to insure.

Some of these personal factors can cause your excess to be higher, such as being a new driver with limited driving experience. There are also factors that could result in a lower excess, such as having a tracking device installed on your vehicle and parking it in a locked garage.

The general rule, however, is that younger, less experienced drivers will pay a higher excess because they are recognised as higher risks, as are owners of high value (read: super expensive) cars.

Choosing Your Own Excess Amount

An interesting point about how your excess is calculated which we haven’t mentioned yet is that you can influence how low or how high it is. This happens when your insurer gives you the option to increase or decrease your excess amount by accepting a higher or lower monthly premium amount.

Simply, by taking a higher excess, you can decrease your car insurance premium. You can also reduce your excess amount in exchange for a higher premium.

It’s a useful way to make your premium more affordable, however it can become an issue when people increase their excess to an amount that they can’t afford. Seeing as the excess is something that you can’t avoid, it’s vital that you choose an amount you can reasonably expect to pay.

Feel informed?

We hope that this information helps you understand the car insurance excess (or excesses) that comes with your policy.

Don’t forget that AA Inform is home to a range of useful tools and resources!

Not only can you use our website to calculate your fuel consumption for specific trips but you can also check out the AA Insurance Supermarket to shop around and compare up to 7 car insurance quotes from reputable insurance providers. This way, you can make sure that you’re securing the best deal you can.