Nutty

What does ‘excess’ mean?

Excess is a term you’ll come across when you’re getting insurance, such as car or home insurance.

If you ask your insurance provider to pay for something for you (called ‘making a claim’), you’ll have to pay for part of it yourself. This will be a set cost that you agree with your insurance provider when you first get your insurance.

The higher your excess, the less money you’ll normally have to pay for your insurance per month or year (called your ‘premium’).

Nuts About Money tip

Make sure that you choose insurance with an excess you can easily afford. Even though a higher excess will normally reduce your monthly or yearly cost, if it’s too high, you might not be able to afford it if you need to make a claim.

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