How does voluntary excess work?
Learn about your car insurance excess. Find out how a voluntary excess works, and how it affects your premiums.
Published: 13 February 2026
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What is car insurance excess?
Your car insurance excess is the amount you have to pay towards a claim.
The excess is the first part of a claim that you pay yourself. And the rest is paid by your insurer, up to your policy limits.
There are two types of car insurance excess:
- Compulsory excess - an amount set by your insurerCompulsory excess - an amount set by your insurer
- Voluntary excess - an amount you can choose to add yourselfVoluntary excess - an amount you can choose to add yourself
Your total car insurance excess is your compulsory excess plus your voluntary excess.
Both amounts will be shown on your policy schedule. And, if you have Tesco Car Insurance, you can sign in to Your Insurance Account to check your policy details online.
What is compulsory excess on car insurance?
Your compulsory car insurance excess is an amount set by your insurer, which applies to each claim.
The actual amount can vary, depending on your car, your age and experience, and the type of claim you make.
For example:
- if you’re a young or inexperienced driver, you might have a higher compulsory excessif you’re a young or inexperienced driver, you might have a higher compulsory excess
- claims for windscreen damage often have a separate, lower excess for a repair and a different one for a replacementclaims for windscreen damage often have a separate, lower excess for a repair and a different one for a replacement
With Tesco Car Insurance, you usually pay the excess direct to the garage repairing your car. Or it could be deducted from a total loss settlement.
If the accident wasn’t your fault, and we recover costs from the other party, we might refund your excess. That includes both your compulsory excess and your voluntary excess.
It’s always best to check your policy schedule to see the exact amount of your excess. So it doesn’t come as a surprise if you need to make a claim.
What is voluntary excess on car insurance?
A voluntary car insurance excess is an extra amount you choose to pay on top of your compulsory excess.
The key things to remember are:
- a voluntary excess is optionala voluntary excess is optional
- you choose the amount when you buy or renew your policyyou choose the amount when you buy or renew your policy
- it’s added to your compulsory excess to make your total excessit’s added to your compulsory excess to make your total excess
How does a voluntary excess work?
Here are the main things to remember when thinking about a voluntary excess.
How it affects your premiums and claims
Having a voluntary excess can help to lower your premium. But it means you’ll have to pay more towards a claim.
It’s also worth bearing in mind that:
- with a higher voluntary excess, you’ll pay a bigger proportion of small claimswith a higher voluntary excess, you’ll pay a bigger proportion of small claims
- if your repair costs are less than your total excess, you’ll have to pay the full amount and won’t get any help from making a claim.if your repair costs are less than your total excess, you’ll have to pay the full amount and won’t get any help from making a claim.
- you need to be sure you can afford your total excess in the future, not just when you buy or renew your policy.you need to be sure you can afford your total excess in the future, not just when you buy or renew your policy.
Examples: what you pay if you make a claim
Here are 3 examples to help you see the effect of your excess on the amount you pay towards a claim.
Example 1
Compulsory £250 + voluntary £250 = total car insurance excess £500.
A £1,200 repair means you pay £500. Your insurer pays £700.
Example 2
Compulsory £250 + voluntary £0 = total car insurance excess £250.
A £400 repair means you pay £250. Your insurer pays £150.
Example 3
Total excess £500, repair cost £400.
You pay £400. No claim is made.
Your car insurance excess - good to know
- Some types of claim use different excesses. For example, windscreen repair vs replacement.Some types of claim use different excesses. For example, windscreen repair vs replacement.
- A young or inexperienced driver excess could be added on top of your standard excess.A young or inexperienced driver excess could be added on top of your standard excess.
- Your excess and premium can change at renewal. Always check your policy schedule before you renew your policy.Your excess and premium can change at renewal. Always check your policy schedule before you renew your policy.
Different types of car insurance policy
Compulsory and voluntary excesses apply to most types of car insurance policy. For example:
- third party, fire and theftthird party, fire and theft
- fully comprehensive car insurancefully comprehensive car insurance
You can learn more about comprehensive cover in our guide - What is comprehensive car insurance?
Your Tesco Car Insurance excess - helping you to save you money
At Tesco Insurance, we want to help you get a good deal on your insurance.
If you can afford a higher voluntary excess, it can help to lower the cost of your cover. And there are other ways you can save money too.
Clubcard discount
Tesco Car Insurance comes with Clubcard Prices. That means you’ll get money off just by having a Tesco Clubcard.
If you don’t already have one, find out about Clubcard.
With our special offer, you can get 10% off Car Insurance with your Clubcard until 15 May 2026. Excludes add-ons and optional extras.
No claims discount
If you’re a new or renewing customer, your no claims discount can also help you to save money on Car Insurance.
You can learn about no claims discounts in our guide - No claims discounts explained.
Why choose Tesco Car Insurance?
It’s easy to find out what the options are and compare cover levels with Tesco Car Insurance. And we’re here to help and support you too.
Here are just a few of the reasons to choose us:
- UK-based customer serviceUK-based customer service
- 99% of Car Insurance claims paid (July 2024-June 2025)99% of Car Insurance claims paid (July 2024-June 2025)
- Optional extras to increase your coverOptional extras to increase your cover
- Save money with your ClubcardSave money with your Clubcard
You can choose from different cover levels - Gold, Silver and Bronze. And you can add optional extras like Breakdown Cover and Car Key Cover to get more cover for an additional cost.
Help for Car Insurance customers
If you’re a Tesco Car Insurance customer, find out how to manage your policy, get in touch or make a claim.
Important information
Tesco Car Insurance is arranged and administered by Tesco Insurance and is underwritten by Tesco Underwriting Ltd.
Tesco Insurance Breakdown Cover is provided, administered and underwritten by RAC Insurance Ltd.
Keycover is underwritten by AA Underwriting Insurance Company Ltd. Claims are handled by Keycare.
You’ll find complete details of the cover, monetary limits, exclusions, excesses and terms in our policy schedule.
Learn more about Car Insurance
Compare our Gold, Silver and Bronze comprehensive cover and save money with your Clubcard. For drivers aged 21 and over.