What is a voluntary excess on car insurance?

Irish car insurance – The voluntary excess option.

Many car insurance companies in Ireland offer a voluntary excess option on their policies. What is it?

A policy excess is the first part of any claim that you pay. The standard excess on car insurance in Ireland can vary from around €125 to about €400. In general, a standard excess will be around €300. This means that if your claim is agreed at €4000, you will receive the cheque less the excess (€4000-€300 excess = €3700).

A voluntary excess is an option which some insurer’s offer, where you can agree to carry an additional excess on top of the standard excess in return for a discount on the premium. The premium can be discounted by up to 20% in some cases.

EXAMPLE:
The standard policy excess is €150. €300 voluntary excess option available. Your claim is for €10,000.
If you did not go with the voluntary excess then you would have got €10,000 – €150 =  €9,850.
If you went with the voluntary excess then you would get €10,000 – (€150+€300) = €9,550.

Make sure to ask what the excess is when you are getting a quotation and always look at the policy schedule to see what excess is on your policy. Some insurers and brokers will automatically increase the excess to bring the premium down but it is important to clarify this before arranging the cover.

If you would like a car insurance quotation, please call us on 049-4332944, e-mail info@martininsurance.ie or complete our online enquiry form.

Disclaimer: The material contained is this article is for general information purposes only and does not constitute professional advice.