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What is a Car Insurance policy excess?
A car insurance excess is the amount you will have to pay towards a claim.
Car insurance excesses are made up of a voluntary excess, which you can choose, and a compulsory excess which is set by the insurer. If you are aged under 25 or an inexperienced driver, you will have to pay a higher compulsory excess.
The voluntary excess you set may affect your premium. For example, if you choose a lower excess your premium could go up in price, and if you choose a higher excess it may bring your premium down. Remember, if you choose a higher excess to lower your premium, you would have to pay this out if you are involved in a claim for which you are at fault.
For example: If you had a claim that cost £1,000 and a total excess of £250, the total that would be paid out for your claim would be £750.
Please note, if you set a voluntary excess near to or above your vehicle value, you may not be able to claim for any loss or damage to your vehicle.
This answer specifically relates to Tesco Bank Car Insurance. For an answer relating to Box Insurance please select Box Insurance in the FAQ drop down list.