What is an insurance excess?

The excess is the amount you agree to pay towards a claim before your insurer pays the remainder. It's usually made up of two parts: a compulsory excess set by the insurer, based on things like your age, driving experience and the car itself, and an optional voluntary excess you choose yourself on top of that.

Choosing a higher voluntary excess generally lowers your premium, since you're agreeing to cover more of any claim yourself. It's worth setting it at a level you could actually afford to pay out if you needed to claim, rather than picking the lowest premium without thinking that through.