Voluntary excess in motor insurance is the amount of money that you agree to pay towards the cost of a claim, in addition to the compulsory excess. The compulsory excess is a set amount that you have to pay towards the cost of any claim, regardless of who is at fault.
Why do people choose to have a voluntary excess?
There are a few reasons why people might choose to have a voluntary excess:
- To reduce their insurance premiums
- To discourage themselves from making small claims
- To build up a no claims bonus
Is voluntary excess right for me?
Whether or not voluntary excess is right for you will depend on your individual circumstances. You should consider the following factors before making a decision:
- Your financial situation
- Your driving record
- The type of car you drive
- The level of cover you need
If you are unsure whether or not voluntary excess is right for you, you should speak to an insurance broker.