A guide to car insurance excess protection

When you buy car insurance, you may be offered excess protection, which can help you recoup the excess you pay if you make a claim, but is it worth the added cost?

Here, we look at how it works and the benefits and drawbacks so you can decide if it’s right for you.

What is a car insurance excess?

Almost all insurance policies have an excess - this is the amount you have to pay if you want to make a claim.

The excess is made up of two parts – a compulsory excess set by your insurer, and a voluntary excess which is chosen by you in exchange for a discount when you take out the policy. Although it’s called a voluntary excess, you still have to pay it when making a claim.

Increasing your excess is a popular way to reduce your overall car insurance premium, but it shouldn’t be set so high that you can’t afford it.

How does car insurance excess work?

If you’re involved in an accident or theft and you make a claim, you’ll have to pay your insurer the excess. The amount is usually taken out of the money your insurer pays out of a cash settlement, or you may have to pay the excess amount to the garage on completion of the repairs. For example, if you claim for £1,500 worth of damage and your excess is £300, you’ll receive £1,200 from your insurer.

The damage / value of your claim needs to be more than the policy excess to be able to make a claim under excess protection insurance.

What is motor excess protection insurance?

Motor excess protection can help you recover the money you’ve spent paying your car insurance excess.

You can buy excess protection insurance for different types of insurance – including home and landlord cover, and for your car. In most cases, it’ll be offered alongside relevant insurance products, rather than as a standalone policy. For example, at Alan Boswell Group, motor excess protection is only sold with car insurance policies, but we can arrange excess protection for other types of policies too.

How does car insurance excess protection work?

Depending on your policy, you can claim back some or all the excess you pay if you make a car insurance claim.

Motor excess protection comes with a claim limit – the maximum amount of money you can get back within the policy year.

If you have an accident and decide to make an insurance claim, you’ll either pay the excess first or the insurer will deduct it from the payout. If your claim is successful, you can claim the excess back under your motor excess protection policy.

In most cases, you can make multiple claims up to your agreed claim limit. So, if your limit is £1,500, and your excess is £500, you could make three claims in the policy year, provided the value of the claim is more than the excess amount each time (bear in mind, making multiple claims under your car insurance will impact your insurance premium).

When you make a motor excess protection claim, your insurer will ask for confirmation that your car insurance claim has been approved. A letter or email from your car insurer confirming this should be all you need. If your protection policy is with the same insurer as your car insurance, they should already have this information.

Can I make a claim immediately?

Policies typically have a delay between taking out a policy and when you can start claiming. Insurers set their own waiting periods, ranging from two weeks to a month.

The reason for waiting periods is to prevent people from taking out a policy immediately after a car accident and then claiming to recoup their excess.

Is there a time limit for making claims on my car excess protection insurance?

You can claim on your motor excess protection policy once your car insurance claim has been approved. In most cases it will also need to be within 30 days of the accident.

Remember that policies will vary by insurer, so double check your policy documents for any time restrictions.

What does motor excess protection cover?

Motor excess protection covers your excess if you make a successful claim on your car insurance because of damage, fire, theft, or vandalism.

Excess protection should pay out regardless of whose fault the accident was. Your insurer should also reimburse you even if they cannot claim back expenses from a third-party (for example, the other driver’s insurer).

Policies will usually cover claims you make, and claims made by a named driver.

What does car insurance excess protection not cover?

Policies generally won’t cover damage caused by activities considered ‘risky’. This could include track, race or other competition days and off-road events. You won’t normally be covered for windscreen or glass damage either.

Remember to check your policy’s terms and conditions which should clearly show what is and isn’t covered.

Am I covered if I have an accident abroad?

Some car insurance excess protection policies cover accidents abroad, while others don’t, so it’s best to check your terms and conditions.

How much does car excess protection insurance cost?

Car excess protection is usually bought alongside your car insurance and is one of the least expensive add-ons. While prices vary depending on the insurer and the monetary limit you select, a policy typically costs from around £35.

Some comprehensive car insurance policies will automatically include excess protection, so you should check your policy wording to be sure.

Is car insurance excess protection worth it?

Motor excess protection can help you recover your excess in the long run. Policies tend to be inexpensive, which can make them very good value for money, particularly as the return is likely to be considerably more than the initial cost.

However, if you don’t make a claim, it’s still an expense you won’t get back despite its relatively low cost. But, as with most insurance policies, it can offer you peace of mind, knowing that you can get your excess back should you need to make a claim.

If you’re trying to weigh up the pros and cons, here’s what to consider before committing to a policy:

Car insurance excess protection pros

Policies are relatively inexpensive
Recoup your excess
Minimises financial losses
Reduce the premium on your car insurance by having a higher excess

Car insurance excess protection cons

An extra expense you might not be able to budget for
If you never claim, it’s money you won’t get back
Terms and conditions apply

Car insurance excess protection from Alan Boswell Group

You can buy motor excess protection as an additional benefit when purchasing car insurance from Alan Boswell Group.

For more information about our car insurance packages, motor excess protection, and other add-ons, speak to a member of the team.

Speak to us: 01603 649700