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You’ve probably come across the word excess before, but it can be rather confusing. Is it something you pay? Is it deducted? Is it worth having? The fact of the matter is that the excess can make a considerable difference, in terms of the insurance premium and what you’ll have to pay out of your own pocket if you’re involved in an accident. And this applies if you have, for example, excess car insurance, but in other policies too. Let’s see what having excess really entails and when it might be of interest to you.

What is excess?

The excess is the amount you agree to pay if you are involved in an accident. In other words, when your insurance covers damage, you pay part of the cost and the rest is covered by the insurer. For example, if you’ve agreed to €300 excess and the repair costs €1,000, you would pay €300 and the company would foot the remaining €700 bill.

This system is used in a number of different types of insurance: from car and home insurance to health and liability policies, provided this option has been agreed upon beforehand.

 

How does comprehensive excess insurance work?

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Comprehensive excess insurance is extremely common in car insurance. If this is what you’ve taken out, you’re fully covered against claims, but you pay a fixed sum in each case.

For example, if you have car insurance with an excess of €300 and have an accident that causes €2,000 in damage, you’ll pay €300 and the insurer will pay the remaining €1,700.

Another possible scenario is that you have an excess of €300 and the damage costs €250. As it does not exceed the excess amount, you’ll have to pay the entire cost. To sum up, the insurance is cheaper than one without excess, but you bear part of the cost in the event of an accident.

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Similarly, the excess applies in the event of a claim involving own damage and when there is no responsible third party or no one has been identified, since, in this case, you can claim the excess amount from the person responsible for the accident. 

Excesses do not apply to damages to third parties, or damages caused as a result of theft or broken windows, when an own-damage guarantee is taken out. However, the possibility of taking out the own damage insurance is subject to the vehicle’s age.

Advantages

What are the main advantages of comprehensive excess insurance?

Taking out comprehensive excess insurance could be a great option if you’re looking for comprehensive protection at a more affordable price. Although the policyholder has to bear part of the cost in the event of an accident, this type of insurance offers important benefits that are worth considering, especially if you’re an experienced driver who doesn’t normally have accidents.

Lower premium

By sharing part of the risk with the insurer, the insurance cost is usually lower than one without excess.

Comprehensive coverage for major incidents

You still have comprehensive protection, even in the event of serious or expensive damage.

Greater control over which claims to report

You can decide whether it’s worth paying for minor damages yourself so as to avoid your premium going up.

Ideal for drivers with a good driving record

If you’ve barely had any accidents, you can save without sacrificing coverage.

Fast processing for major claims

When the damage exceeds the excess, the insurer deals with the rest of the process.

Differences between insurance with and without excess

When you’re weighing up insurance options, one of the first decisions you have to make is whether you’d prefer it with or without excess. Both options have their pros and cons, and the choice largely comes down to your personal situation:

  • With excess: the annual premium is generally lower.

  • Without excess: the price is higher, since the insurer assumes 100% of the risk.

  • With excess: you pay part of the claim (for example, the first €300).

  • Without excess: you pay nothing if the claim is covered.

  • With excess: it’s often not worth reporting low-value claims.

  • Without excess: you can report any claim without having to worry about the cost.

  • With excess: perfect for people who’ve been involved in few accidents or experienced drivers.

  • Without excess: recommended if you’re looking for complete peace of mind and coverage right from the get-go.

  • With excess: greater control over what incidents to report.

  • Without excess: maximum protection, without having to bear additional costs.

When is it advisable to take out excess insurance?

Taking out excess insurance may be advisable in certain situations and for certain types of drivers. These are the most common:

If you’ve been driving for years and have rarely been involved in accidents, you probably won’t need to file claims that often. In that case, you can benefit from a lower insurance premium without sacrificing good coverage.

If you only drive at the weekend, on holiday, or go on short trips, there is a lower risk of getting into an accident. An excess insurance policy can help you save without breaking the bank.

If your car is a few years old and you don’t need full coverage right from the outset, this option allows you to avail of comprehensive insurance at a more affordable price.

If you can bear the cost of minor repairs but want to be protected against major accidents, the excess strikes a good balance between cost and coverage.

Ultimately, this type of insurance is for those who value comprehensive protection but don’t want to pay more than necessary if they meet the use or risk profile criteria.

FAQs

The answer to all your questions

No, excess does not limit insurance coverage. What changes is the way in which compensation is paid out in the event of an accident. In other words, you can still avail of all the coverage you’ve taken out, but if you trigger it, you’ll have to pay part of the cost depending on the excess amount. It affects how much you have to pay, not the risks covered.

The excess reduces the insurance premium and gets around unnecessary paperwork in low-cost claims. It’s a way for the insured party and the insurance company to share the risk. This way, you’ll still be protected against serious unforeseen events, but with a more reasonable premium.

Having an excess of €1,200 means that if you have a claim covered, you’ll be responsible for paying the first €1,200. The insurer will only cover any amount above this.

For example, if the repair costs €1,800, you’d pay €1,200 and the company would pay the remaining €600. Now, if the damage is minor—let’s say it costs €1,000—then you’d have to pay everything yourself, because that threshold has not been met.

It depends on your profile and needs:

  • If you rarely use your car, have a good track record, and want to pay a lower premium, excess insurance may be more attractive.
  • If you’d prefer coverage right from the outset and want to avoid unexpected costs, insurance without excess offers greater peace of mind.

Comprehensive insurance with €200 of excess covers all damages to the insured vehicle, but in the event of an accident, you’ll have to pay the first €200. It’s an intermediate option; paying a low premium while having good coverage. It’s the perfect option if you’re looking for complete protection without having to pay too high a premium.

It depends on who is to blame:

  • If you are responsible for the accident, you’ll have to pay the excess, and the insurance company will cover the remaining damages.
  • If another driver is responsible and this is proven, you won’t pay anything: their insurance will cover 100% of the cost.

In any case, your insurance company will help you file the report and handle the paperwork to have the vehicle repaired.