Excess: the bit YOU pay
Lesson 2 of 13 in our free Insurance guide: a 5-minute money game with the key points below.
This lesson is in the full version.
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Questions you'll answer
Your laptop worth £900 is stolen. Your policy has a £100 excess. How much does the insurer pay out?
Raising your excess from £50 to £250 usually does what to your premium?
Quick facts
- Fact: “Some policies have a compulsory excess AND a voluntary excess, added together.” — Common in car insurance. Your total excess is both combined.
- Myth: “It's always worth claiming, however small the loss.” — If the loss is barely above the excess, a claim can push future premiums up for little gain.
- Fact: “A higher excess is fine if you have savings to cover it.” — Could you pay it tomorrow without panic? Then a higher excess can make sense.