Voluntary excess is the amount you agree to pay towards a car insurance claim, on top of the compulsory excess your insurer sets on your policy. Choosing a higher voluntary excess typically reduces your annual premium, but increases what you'll pay out of pocket if you have to claim.
For a typical UK driver, voluntary excess can be set anywhere from £0 up to around £1,000. Pick the right amount and you reduce your insurance costs without giving up meaningful protection; pick the wrong amount and you either overpay every month or face a painful out-of-pocket bill when you claim.
Here's a quick worked example. If you chose a voluntary excess of £300 when you took out your policy, and your insurer has set a compulsory excess of £200, you'd need to pay a total of £500 towards the claim before your insurer covers the remaining costs.
This guide walks through how voluntary excess actually works, how it interacts with your premium, and how to pick the right level for your circumstances.
How does voluntary excess affect your car insurance premium?
When choosing a UK car insurance policy, you're given the option to select a voluntary excess amount, typically between £0 and £1,000 in £50 or £100 increments.
A higher voluntary excess usually means a lower insurance premium (the overall cost of your monthly or annual payment), because it signals to the insurer that you're less likely to make low-value claims. A lower voluntary excess does the opposite: higher premium, lower out-of-pocket cost if you claim.
Tip: if you're a careful driver with a clean record, choosing a higher voluntary excess can typically save you money on your ongoing premiums. But only commit to an excess you can actually afford to pay in a single hit if you have to claim.
Voluntary vs compulsory excess: what's the difference?
Before choosing an insurance policy, it's important to understand the two types of excess that may apply:
- Compulsory excess is the amount your insurer requires you to pay towards a claim. It's non-negotiable, set by the insurer based on your risk profile (age, driving experience, vehicle, claims history).
- Voluntary excess is an additional amount you choose to pay on top of the compulsory excess. It's flexible and directly affects your premium.
Say you're a younger driver with limited driving experience. You're likely to have a higher risk profile than a more experienced driver, which will typically push up your compulsory excess. In that case, a lower voluntary excess can keep the total payable in a claim manageable, though your premium will usually be higher. Getting a few quotes with different excess amounts is the only way to see how the two numbers interact for your specific profile.
Telematics car insurance is one way to break out of the age-based compulsory excess trap: insurers that price on how you actually drive (rather than demographic assumptions) can typically offer fairer excess and premium combinations to safer drivers in any age bracket.
When do you pay voluntary excess?
You pay your voluntary excess, along with your compulsory excess, when making a car insurance claim. The total of both is deducted from the claim payout, or you pay it directly to the repairer.
Before you decide to claim, it's worth comparing the cost to repair any damage against your total excess. If the repair costs after a minor accident are £300 and your total excess is £500, it may be more cost-effective to cover the repairs yourself rather than making a claim.
There's a second reason to think twice before claiming on a minor incident: claims affect your future premiums too. Our guide on how long car insurance claims affect your premium walks through how most insurers factor past claims into renewal pricing, often for three to five years.
Can you adjust your voluntary excess?
Yes. Voluntary excess is adjustable, so you can change it to suit your finances year-on-year. Most insurers let you update it at renewal.
Tip: review your voluntary excess each year before renewal. If you could afford to pay a higher voluntary excess after a year of stronger savings, raising it can lower your premium. If your financial situation has tightened, the reverse applies.
How do you choose the right voluntary excess for you?
Picking the right voluntary excess is about balancing the cost of your regular insurance payments against the potential cost of a claim.
- Lower voluntary excess → higher premium, but less to pay if you claim.
- Higher voluntary excess → lower premium, but a bigger bill if you claim.
A practical rule of thumb: pick an excess level you could cover from savings without needing to borrow. If that number is £250, don't stretch to £750 just to shave a few pounds off your monthly premium — the saving rarely justifies the risk.
Regularly reassess your financial situation and your real-world claim risk (miles driven, commute type, vehicle value) so your excess choice reflects how you actually drive today, not how you drove two years ago.
Frequently asked questions about voluntary excess
Can you claim back excess on car insurance?
Yes, in most cases you can claim back the excess if the accident wasn't your fault. If you've had to pay the excess for a car accident you didn't cause, you can usually reclaim it from the other driver's insurance company. If your insurer has dealt with the claim on your behalf, they should be able to recover the excess for you.
Is voluntary excess worth it?
Choosing a higher voluntary excess can help lower your regular insurance payments. Whether it's worth it depends on whether the premium saving is large enough to justify the extra you'd pay if you claim. For drivers with clean records who genuinely rarely claim, a higher voluntary excess typically delivers net savings.
What should you set your voluntary excess to?
When choosing your voluntary excess, decide how much you could afford to pay if you have an accident and need to make a claim. Pick near the top end of what's comfortably affordable to reduce your premium, but stop well short of what would genuinely hurt to pay. If you choose a high excess and can't actually pay it when a claim arises, your insurer may not be able to process the claim.
Why is my compulsory excess so high?
Compulsory excess is calculated by your insurer and depends on factors like your age, driving experience, vehicle group, and claims history. Young or inexperienced drivers typically have a higher compulsory excess than more experienced drivers, as their insurance risk is scored higher.
How do I recover my car insurance excess?
If you're involved in an accident that isn't your fault, and the full cost is covered by the other driver's insurer, you can usually recover the excess you paid. This involves proving the other driver was at fault and depends on the full recovery of costs from their insurer.
Do you get refunded for your excess?
You can get refunded for your excess through excess protection insurance. This covers the cost of your excess up to a limit and refunds you once your claim is settled. It's available as a standalone policy or as an add-on from some insurers.
How long does it take to get your excess back from insurance?
The timeframe for recovering your excess after a claim can vary widely, from a couple of months to over a year. The length depends on the complexity of your claim and how quickly the insurance companies involved can settle.
What if the repair cost is less than the excess?
If the repair cost for your vehicle is less than the excess you'd have to pay, it's generally better not to claim. Have the damage properly assessed to get an accurate repair estimate. If the repair is clearly below the total excess, paying out of pocket typically works out cheaper and avoids a claim on your record.
Is it better to have a higher or lower voluntary excess?
A higher voluntary excess typically leads to lower regular insurance costs, because it signals you're less likely to make low-value claims and reduces the insurer's potential payout. A lower voluntary excess typically means higher premiums but less to pay at claim time. The right balance depends on your financial cushion and your expected claim frequency.
For a deeper dive into how compulsory and voluntary excess work together in UK motor insurance, our guide on car insurance excess explained walks through the full mechanics.
How Zego's telematics car insurance handles excess
UK telematics car insurance from Zego prices your premium on how safely you actually drive, not just on age or postcode. Safer drivers typically see lower renewal premiums across the policy as a whole, and the Zego Sense app measures acceleration, braking, cornering, speeding and rest across every trip.
Get a quick quote with Zego, it only takes a minute.
References
Association of British Insurers (ABI) – Motor Insurance Guidance – WebFetch-verified. Cited for the UK framework of motor insurance cover levels (Third Party, Third Party Fire & Theft, Comprehensive) within which voluntary and compulsory excess operate. https://www.abi.org.uk/products-and-issues/choosing-the-right-insurance/motor-insurance/
