Is It Worth Paying More Upfront to Pay Less Each Month?

Voluntary excess feels like one of those behind-the-scenes numbers. It’s easy to overlook it while you're skimming quotes or clicking through comparison sites. But that figure matters; and sometimes, more than you'd think.

Raise it, and your premium might drop. Keep it low, and you're protected from a bigger upfront cost after an accident. But what’s the sweet spot? And how do you know whether it’s actually working in your favour?

What Exactly Is Voluntary Excess?

In short: it’s the amount you agree to pay towards any claim you make. It sits alongside something called the compulsory excess, which is set by the insurer.

  • Compulsory excess is non-negotiable – usually based on your age, car type, or risk profile
  • Voluntary excess is what you choose to add on top of that

So if your compulsory excess is £250 and you agree to a voluntary excess of £300, you’d pay the first £550 of any claim before the insurer contributes.

Why Would You Agree to Pay More?

It comes down to perception. From an insurer’s point of view, someone who accepts a higher voluntary excess might be less likely to make small claims. That looks less risky; and that reduced risk might mean a lower premium.

It’s like saying: “I’m confident I won’t need this. But if I do, I’ll shoulder more of the cost.” In some cases, that might help shave a noticeable amount off your quote.

When Might It Make Sense to Raise It?

  • You rarely claim; If you've gone years without a single incident, this might be a sensible trade-off
  • You want a lower monthly cost; Some drivers increase their excess to free up cashflow
  • Your car’s low-value; If the car isn’t worth a huge amount, you'd likely avoid claiming for minor repairs anyway
  • You’re confident in your driving; For those with clean records and short, predictable journeys, this may suit

It’s a calculated risk. You might never need to pay that higher amount; but you might enjoy a better price in the meantime.

When It Might Backfire

It’s tempting to set your voluntary excess high and watch the quote drop. But if something does go wrong, and the cost of repairs isn’t far above your total excess, you might be footing the entire bill with no payout at all.

  • Smaller claims become uneconomical; Why claim for £600 if your excess is £500?
  • You might not have the funds ready; Unexpected costs hurt more when you're not prepared
  • It can limit your payout; Especially on older cars, where values are lower

So while a higher excess might feel like a money-saver, it’s not always the safest long-term move; especially if your budget’s tight or your car's had a few issues lately.

How to Choose the Right Voluntary Excess for You

  • Run quotes at different excess levels; See how much you actually save. Sometimes, it’s not worth the risk for a £10 discount
  • Be realistic about risk; Do you drive regularly? Park on the street? Face tricky commutes?
  • Think short and long term; Would you be able to pay the excess tomorrow if something happened?
  • Don’t just go for the default; What’s right for one person might be wrong for someone else

There’s no “right” number. Only a right-for-you number.

In the End, It’s a Balancing Act

Voluntary excess is one of those quiet little choices that sits in the background; until suddenly, it matters a lot. Choose well, and it might feel like a smart call. Choose badly, and it might leave you with an unexpected hole in your wallet.

If in doubt, go for a level that actually feels manageable; not just one that looks good on the quote screen. Because when that moment comes (and hopefully it never does), the number you picked might be the one you’re stuck with.