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Difference Between Voluntary and Compulsory Excess Car Insurance

Voluntary excess is decided by the insuree before initiating the car insurance and compulsory excess is set by the insurer, which is not negotiable.
Should your car be damaged, written off or stolen and you need to make a claim with your insurance company, you will be required to pay the excess that is agreed on your policy, before your motor insurance cover begins to cover the rest. When you have received and chosen a quote from your motor insurance company, your compulsory excess will be included in this rate and is not changeable. Compulsory excess may be higher for drivers who are inexperienced or for those with a claim history. The main thing to remember is that the amount of compulsory excess you pay on your motor insurance premium cannot be altered by you.

What is voluntary excess?

Unlike compulsory excess, voluntary excess is changeable and can be altered by you before you purchase your policy. Every insurance policy will have a set amount of compulsory excess but if you combine this with your chosen amount of voluntary excess payment, their will usually make a noticeable difference to the monthly or annual cost of your premium. If you are willing to add a higher amount to your voluntary excess payment, should you need to claim on your insurance, then you can usually bring down the monthly or overall cost of your insurance policy. The idea of voluntary excess insurance is to allow you to choose an amount of excess you would like to pay (on top of the compulsory excess that is already on the policy) which can adjust your insurance costs.
Choosing your voluntary excess amount should be carefully considered, because if you do volunteer a large amount to the excess, you will be expected to pay this should you need to claim on your motor insurance. Although you may consider yourself a safe and confident driver with a no claims history, the reality is that nothing is guaranteed, so it is worth considering carefully and realistically how much voluntary excess you wish to pay or better still, take out voluntary excess car insurance to ensure you are financially protected in a worst-case scenario.

How much compulsory and voluntary excess should I be paying?

Compulsory excess is a set part of the quote you have been given from your insurance company and its amount will depend on a number of different factors, such as your age and driving experience and the age and make of your car. Voluntary excess (within an accepted range) is completely up to you and there is no set amount for this. It is, however, something you should carefully consider before committing to paying something you can’t afford, should something happen to your car.

What is motor excess insurance?

Excess car insurance is a type of insurance that covers a set amount of the excess you are required to pay on your insurance policy should your vehicle be stolen or damaged/written off in an accident. This is totally separate from your existing motor insurance policy. Depending on your policy, in the event of a claim, you may find yourself paying a large excess amount; car excess insurance can protect against this.

Every insurance policy will have a set amount of compulsory excess but if you combine this with your chosen amount of voluntary excess payment, their will usually make a noticeable difference to the monthly or annual cost of your premium.


Do I need compulsory and voluntary excess car insurance?

Compulsory excess is set by your insurance provider and cannot be changed, so taking out compulsory excess car insurance is definitely something to consider, particularly if you are a new driver and are facing a premium with a high excess. By taking out combined voluntary and compulsory excess insurance, you are not only protecting yourself financially should anything happen to your vehicle, but you could also potentially reduce the cost of your monthly or annual premium, without taking too much of a risk, if you cover your excess with compulsory and voluntary excess car insurance.
If you want to know more about PSA’s Excess Insurance click below

Find out more about PSA's Excess Insurance


Find out more about PSA's Excess Insurance

Additional Reading
Compulsory Excess Car Insurance 08 May 2019
What Is Excess Insurance? 08 May 2019
The complete Guide to Excess Insurance 07 May 2019
Five reasons to take out excess insurance 07 May 2019
© PSA Insurance Solutions
PSA Insurance Solutions Ltd Reg No: C83206 is a limited liability company under Maltese Law, having its registered address at: MIB building 53 Abate Rigord Street Ta’ Xbiex Malta, Tel + 356 22 58 34 92. The company is enrolled to act as an insurance agent in terms of the Insurance Intermediaries Act, 2006 by the Malta Financial Services Authority (MFSA), Notabile Road, Attard BKR 3000, Malta.