What Is the Voluntary Excess for Van Insurance?
When seeking van insurance, understanding the differences between the various types of products available is key to finding the right policy for you. One key element of many policies you may come across is a voluntary excess.
Voluntary excess is a figure that you agree to pay on top of the insurer’s compulsory excess. The amount the insurer adds on is known as the ‘compulsory excess’. It is an amount the insurer puts on the policy to help bring down the total cost of your cover. The voluntary excess is an additional amount you can decide to apply which will help you secure an even lower policy price. However, bear in mind that if you do need to make a claim (hopefully you never will!), the excess you have to pay will increase by this voluntary figure.
What Are the Benefits of a Voluntary Excess?
The higher the voluntary excess you are willing to agree to pay, the lower your premiums can be. Therefore, if the total premium for a policy with no voluntary excess is £300, you might find a policy with a voluntary excess of £200 could reduce the premium to £200. Obviously, that £200 saving won’t be nearly worth it if you then have to pay an additional £200 for a claim.
It’s advisable to be honest when assessing an appropriate figure for your voluntary excess. You should consider the cost of making a claim, the value of your van and the likelihood of you being involved in an incident as noted above. It’s also worth taking into account any no-claims bonus you may have accumulated, as this could save you money in the long run.
What Is the Maximum Voluntary Excess?
The amount of voluntary excess you can add on to your policy will depend on your insurer. Most insurers will offer a range of options of the amount you can add. Usually, the options range from an additional of £50/$50 up to £500/$500. The maximum amount will then be displayed to you but, always read the policy document thoroughly before signing up to any cover in order to ensure your voluntary excess figure fits your individual needs.
Should I Add a Voluntary Excess?
Many people choose to increase their excess in order to reduce their premiums. As a rule of thumb, weighing up the cost of the excess to the likely amount of any claim should be taken into account before agreeing to an excess of any size. Consider things such as: are you buying a car or van that is likely to be expensive to repair? Is your van between 10 and 15 years old? It’s usually wise to set a voluntary excess while taking into account your circumstances and the value of your van.
Conclusion
Before seeking van insurance, it’s important to understand the differences between the various types of cover available. Voluntary excess is an additional fee you can choose to pay on top of your compulsory excess, which will lower the cost of your insurance premiums, but it might not be worth it if you have to pay the additional fee for a claim. Although the amount of the excess you add onto your policy largely depends on your individual circumstances, it’s important to set a suitable figure while considering the cost of the excess, the value of the van, the age of the van and your no-claims bonus.