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Compare Our Best Excess Insurance For Reimbursement Cover

Find excess insurance from our partner Excess Buddy so there is no bill to pay if you have to make a claim on your car or hire vehicle policy.

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How to find the best excess insurance

To get the cheapest policy that offers the right cover for you, get as many different quotes as you can.

Look for insurers who can cover the cost of your excess if you need to claim on your car insurance or hire vehicle policy.

Is excess insurance worth the cost?

How does excess insurance work?

It reimburses the excesses you have to pay on other insurance policies when you claim.

It is often used to run alongside car hire agreements, to cover the high excesses charged by car rental companies.

You still need to pay your insurance company the excess when you make a claim, but you can then recover the cost from your excess policy.

Here is more information about how excess insurance works

Find the right excess insurance cover

Get the cover you need by using this comparison to check:

  • Cost: If the cost of cover is more expensive than the cost of paying your excess yourself, you may not need it.

  • Claims limits: You need to pick your limit before you take out cover, so choose enough to cover your compulsory and voluntary excesses.

  • Worldwide cover options: If you drive your car abroad, or if you are looking to cover your travel insurance excess, look for a policy that covers you outside the UK.

  • Types of policy: You have the option of a single policy, which covers one insurance excess, or a lifestyle policy, which covers several. You can get daily cover, for short term car hire; or an annual policy, which can cover several rentals.

Here is how to find the right excess insurance policy

What does excess insurance cover?

Excess insurance can cover insurance policy excesses, like your motor or home cover, and the high excesses charged by hire car companies.

An excess insurance policy can cover compulsory and voluntary excesses on a range of insurance policies.

You will need to agree to an excess limit before you take out cover. The higher your limit, the more you pay for cover.

What is not covered?

There are a few common exclusions for excess insurance cover, but it will vary between policies. The main exclusions of excess insurance are:

  • Excesses that go over your policy limit, e.g. £750

  • Events that happened before the start of your policy

  • Claims not covered by your main policy

  • Excesses that can be claimed from a third party, e.g. if they are at fault

  • Claims where you have not met the terms of your hire agreement

Excess insurance cover when hiring a car

If you hire a car, excess cover could save you a lot of money.

Hire car companies can apply a £1,000 excess while you are renting a vehicle. This means if you make a claim, you would have to pay for any damage up to the value of £1,000. But if you have excess insurance, it would cover this cost for you.

Make sure getting cover from a separate excess insurance provider does not break the terms of your hire agreement.

Hire cars will usually come with an insurance policy, but it will likely include a high compulsory excess, such as £1,000. This means it will cost you at least £1,000 to make a claim.

Other types of excess insurance

Excess insurance cover could save you a lot of money on any policy that features a high compulsory excess.

For example, you may have to pay a high theft excess on your motor insurance, or for subsidence claims on your home policy.

If you are a new or young driver, you may also face higher compulsory excesses because you are more likely to make a claim.

What type of excess insurance should you get?

The three types of excess insurance you can choose from are:

  • Car hire: This covers you when you rent out a vehicle where high excesses apply. You can take out cover on a daily or annual basis, depending on how long you are hiring the vehicle for.

  • Single policy: This covers the excess on one insurance policy, like your car or home insurance. Excess cover like this is best if you have insurance with a high excess to save on your premium.

  • Lifestyle policy: This acts as excess cover on a range of insurance policies, like your car, home and travel insurance. This is usually the cheapest way to cover all your policies, but there will likely be a cap on how much you can claim for.

Is excess insurance worth the cost?

It depends on how high your excess is and the cost of an excess insurance policy. For example, some can cost as little as £2 a month, but others will be more expensive.

You need to balance the price of an excess policy against the cost of paying your excess out-of-pocket. If it is cheaper to pay your excess, don't buy additional cover.

How does excess insurance cost?

It varies between insurers, but some excess policies can cost as little as £2 a month.

You should consider the cost of the excess on the policy or policies you want to cover before taking out an excess insurance policy, to decide if it is worth the cost to you.

Excess insurance FAQs

Last updated: 18 October 2021

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Why compare excess insurance with money.co.uk?

By comparing caravan insurance you could save money on the policy. The best value excess insurance will offer you the cover you need, at a price you can afford. Choose a cover plan from the best UK insurance companies and see the online discounts they offer.

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