It is an insurance policy that covers the cost of your excess if you need to claim on another type of insurance. It is sometimes known as an excess waiver.
For example, if your car insurance excess is £250, you have to pay this before you can claim on your policy. But with excess insurance, you then get the £250 paid back.
There are two main types of excess insurance:
You can cover the compulsory excess set by your insurer, and any voluntary excess you choose to lower your premium. You can cover a range of policies, including:
You agree a cover limit with your excess insurer before you take out cover. This usually ranges between £250 and £750.
It varies between policies, but the main exclusions of excess insurance are:
It varies between insurers, but some excess policies 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.
Use our comparison to get as many different quotes as possible and find the best deal.
You should consider excess insurance if you are hiring a car. Most hire companies make you pay a £500-£1,000 excess if the car is damaged while you are using it, and excess insurance could cover this cost.
For all other types of insurance, weigh up whether the price of your excess warrants the cost of a policy. If your excess is less than the price of excess insurance, it is not worth it.