insurance excess is what you have to pay out if you have to make
a claim on your car insurance.
example if you have a car insurance cover and your excess is set
to £250 and you are involved in an accident where your own
insurance company will have to pay out you will be required to pay
the first part of the claim. So if the value of the claim is £1000
you will have to pay out the first £250 of this and your insurance
company will cover the rest (£750).
Compulsory Excess is an excess that the insurance company has stated
must be paid. This is usually applied to young or new drivers as
they are at a higher risk to have an accident.
Voluntary Excess is added if the person taking out a car insurance
policy adds it. The reason for voluntary excess can help to reduce
a car insurance premium as in the event of an accident there will
be less for the insurance company to pay.
Insurance Excess Example:
Compulsary Excess: £300
Voluntary Excess: £250
If the above person needs to make a claim on their own insurance
then they woul dhave to pay the first £550 of the claim (this
includes the £300 compulsary excess that the insurance company
states and then also the voluntary excess of £250 also)