November 30, 2021

What Are The Types Of Private Car Excess Insurance?


Private excess insurance reimburses the out-of-pocket expenses you are obligated to pay on a private car insurance claim.

Every type of insurance policy has an excess clause. The clause states a sum of money that the policyholder must pay.

For example, if you are involved in a road accident and want to pay for the repair on your private care insurance, you must pay the excess. We have covered private excess insurance in full in this blog.

The excess payment usually involves the policyholder paying the reparation or replacement costs upfront. They are reimbursed later. Oftentimes, private car insurance can leave drivers suffering a financial loss.

When you take out a private excess insurance policy, you recover the amount you pay and break even.

What Is Private Car Excess Insurance?

Excess insurance cover is an additional type of insurance coverage that makes up the financial loss in relation to excess payments. These types of policies are taken out alongside your car insurance or home and contents insurance.

There are three types of private car excess insurance:

Single Policy Excess Insurance

Single policy excess insurance covers the excess on one car insurance policy. This is a good option if you choose to pay voluntary excess cover to lower your monthly premiums. Voluntary excess involves raising the amount of excess on your policy to bring the premium down.

Lifestyle Policy Excess Insurance

A lifestyle policy insurance is ideal if you want to cover the excess on various insurance policies. This is the most cost-effective way to protect your money against excess.

For example, if you have more than one car, a lifestyle excess policy will cover all the vehicles registered to one address. You can also use these types of policies to cover the excess on your household, travel insurance or medical insurance.

Depending on the number of insurance policies you want to bring under this umbrella cover, together with the accumulative amount, there will probably be a cap on the amount of excess you can claim for.

Car Hire Excess Insurance

Car hire firms notoriously claim against drivers for damaged vehicles. This is where a car hire excess really shows its true value. For a minimal amount, you can take out car excess insurance daily or long-term cover up to a year.

Why Do I Need Private Car Excess Insurance?

Private car excess insurance is not suitable for everyone but is a good option for drivers that have a high rate of payable excess in their car insurance policy.

If you own more than one car, or other members of your household drive a different car to yours, it may also be worth looking into getting private car excess insurance.

If you’re on a car hire excess contract or plan to hire a car whilst you’re on vacation, our car hire excess insurance is recommended.

For more information about our private car hire excess insurance policies, contact us at +44 (0) 20 3740 4431 & at to speak with a member of our knowledgeable team.