What the excess on your policy really means

Every policy has an excess: the first part of each claim that you pay yourself (sample note).

Some policies have two, a compulsory excess set by the insurer and a voluntary one you choose. Raising the voluntary excess lowers the price, but you pay more every time you claim.

Before you choose, ask yourself what you could pay at short notice. Your adviser can show you the same policy with two or three excess levels.