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What is Excess Insurance?


Excess Insurance is a policy that runs alongside your own motor insurance policy and pays towards your voluntary or compulsory excess.


As a motorist you may not have thought about protecting the excess on your motor insurance but what would happen if you needed to make a claim on your motor insurance policy? Please remember that your own motor insurance company will deduct your excess from any payment they make.


Even if you are involved in a minor accident you may find that you could be hundreds of pounds out of pocket.


In fact depending upon how much your excess is, it is not unheard of for you to be liable for the first £500, £700 or even in some cases £1000 of any claim.


This is exactly where excess insurance can help, in that once your own insurance company have agreed to settle and you have made payment you can claim your excess payment back. 


After all accidents happen, and even the best vehicle owner can be affected, so no matter if it is vandalism, accident or simply a minor bump, Excess Insurance can make sure that you do not have to worry about paying for your excess.


Please note that to help combat fraud and to help keep costs down there is a waiting period of 30 days from the day that you buy your policy to the time that you can make a claim. However, this will not apply if you are renewing your Excess Insurance.


Why should you think about buying Excess Insurance?Why buy Excess Insurance?


We all want a good deal and we all want our money to go further so why should you buy Excess Insurance?


If you have been shopping around for motor insurance recently you will notice that you will be asked to enter an amount called a voluntary excess. This is a fixed amount onto your compulsory excess which the insurance company sets.


Sometimes depending upon the type of vehicle you have and your driving history increasing your excess to £300, £400, £500 or even £1000 can lower insurance quotes by anything up to a couple of hundred pounds. It is very easy to be tempted to agree to a higher excess. After all no-one has a bottomless pit of money so even a small saving can make all the difference.


The problem is, what happens if you need to make a claim?


What happens if your vehicle is damaged, vandalised or even in an accident? What happens if your vehicle is written off?


We know that Gap Insurance will protect your vehicle if it is written off but what about all the other times that you may need to make a claim and please remember that even with Gap Insurance while we pay £250 towards your excess any amount over and above this figure will still have to be paid by you.


Excess Insurance can help from as little as under £20 you can protect yourself and make sure that should you ever need to make a claim at least the financial aspects are taken care of.

Example of how Excess Insurance works if your vehicle was written off and you had a form of Gap Insurance.

For illustration purposes lets say that you have paid £15,000 for a nearly new Volkswagen Golf, you have also wisely decided to protect yourself with a return to invoice Gap Insurance policy. All is well and as you expected you are enjoying your Golf until one night you skid on black ice.


Thankfully your Golf performs just as it should and protects you and your passengers and you walk away with just minor cuts and bruises. However, your Golf is written off.

Excess Insurance and Gap Insurance

Your own insurance company give you the value of your golf on the day it was written off which was £10,000 less your excess which was £250 compulsory and £500 voluntary.


Your Gap Insurance policy pays the difference between your own motor insurance valuation of £10,000 and sends a second payment for £5,000 plus a contribution towards your excess of £250.


This means that you receive ....

£9,250 from your motor insurance company 

£5,250 from your Gap Insurance policy

Total Payment £14,500

This means that without any form of Excess Insurance you are still £500 of out pocket.

Vehicles get damaged, they can also be vandalised as well as minor bumps, so what happens when you need to make an insurance claim and you do not have excess insurance?


For illustration purposes we will say that you are currently driving a fabulous Audi A1. 


After a shopping trip you arrive back to the car park to find that someone has damaged your Audi.


While it is drive-able unfortunately the rear of the left hand side of your Audi as well as the back bumper, is scraped and dented and the rear brake light is completely smashed.


You contact your own insurance company who duly arrive to evaluate your Audi and book it in to be repaired.


Your own insurance company take care of everything however before you collect your car from the garage you are informed that you will need to pay the garage the excess on your policy.


This means that you will have to pay £200 compulsory excess and £750 voluntary excess.


You are now in the terrible position of having to pay £950 before you can collect your Audi.


This is where Excess Insurance can help. 


Excess Insurance cannot stop your vehicle from being stolen and it certainly cannot stop you from being involved in a minor accident or bump. It can however, make sure that if and when it is, at least the financial aspects are looked after.

When can you not claim on your Motor Excess Insurance policy?


Like any insurance policy, there are terms, conditions, and exclusions with your Motor Excess Insurance policy with We urge you to read the terms and conditions and we are happy to discuss any points you are unsure of. However, the typical exclusions for your Motor Excess Insurance from will include:


Any claim where your motor insurance excess has not been exceeded and charged to you - let's say you have an excess on your motor insurance of £500 (between your voluntary and compulsory excess amounts). If you have a bump in the car and the cost of repairing the damage is £450 then you could not claim for this on your motor insurance as your excess amount is actually higher than the cost of the repair. As your motor insurer will not process the claim and charge you your excess, you cannot claim on your Motor Excess Insurance policy from 


In order to claim for your Motor Insurance Excess from your main motor insurer must process the claim, charge you your excess amount and you can then claim back this amount from your Motor Excess Insurance policy.


Any claim within the 'waiting period' of the policy - When you buy Motor Excess Insurance for the first time there is often a 'waiting period' from the time you start the policy during which you cannot make a claim on the cover.


This clause is simply to protect the insurer from any potential fraudulent claims where an incident has already occurred and the driver purchases the policy online in order to reclaim their excess. The policy will not cover incidents that occur prior to the purchase of the policy. 


The current waiting period for Shortfall Motor Excess Insurance is 14 days from the policy purchase. The waiting period is not imposed when the Motor Excess policy is a renewal (eg it is the second motor excess policy you have had from or where the motor excess policy start date is the same date as the start date of your primary motor insurance policy.