Excess, No-Claims and When to Claim

Nadia is choosing car insurance. Quote A costs £420 a year with the insurer’s £250 excess. Quote B, for the same car and cover, costs £380: it has the same £250 plus a £500 excess that Nadia adds herself.

The excess is the part of each claim you pay yourself. The insurer sets a compulsory excess; you can often add a voluntary excess to cut the premium. Some sections can carry their own, different excess, such as escape of water on a home policy.

Discounts for a bigger voluntary excess don’t rise in a straight line, so get the actual quote for each option rather than working one out from the other two.