How much does motor excess protection insurance cost?

Making sure your vehicle is insured is a legal requirement for driving on UK roads. But with so many different insurance options out there, it can be difficult to determine which policies you need and which you don’t. After all, it’s only your standard policy that you require law, everything else is just for additional protection.  

Motor excess protection insurance is just one example of a policy that isn’t legally required but could provide beneficial additional financial protection.  

When you make a claim on your standard policy, you’ll typically have a pre-arranged excess that you are responsible for paying. This excess can sometimes cost as much as £500 (Which, 2024).  

That means, should you find yourself needing to make a claim, you’ll be responsible for paying hundreds before your insurance company will cover anything.  

Motor excess protection insurance offers additional financial protection by covering the excess payment, potentially saving you hundreds of pounds per claim.  

But how much does this type of policy cost? 

In this article, we’ll cover:  

• What does motor excess protection cover? 
• What’s excluded? 
• How much does motor excess protection insurance cost? 
• Is taking out a policy worth it? 
• Where can I buy a policy? 

What does motor excess protection cover? 

Motor excess protection insurance will cover the voluntary and/or involuntary excess you’re expected to pay when claiming on your standard policy. 

Most motor excess protection policies will cover you for claims that are deemed not your fault as well as those that you are responsible for. This means, you’ll remain covered, even if you’re responsible for the claim.  

Some policies might also cover incidents like fire, theft, vandalism, or weather-related damage.  However, these terms can change depending on the provider you choose, so ensure you know which features are important to you before choosing your insurer. 

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Also see: What is motor excess protection insurance?

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What’s excluded? 

If you’ve purchased insurance before, you’ll know that every policy comes with limits and exclusions. And, as we’ve already established, no two providers are the same, so what is included and excluded can differ between policies.  

However, here are some common exclusions to give you an idea of what you can expect when purchasing a motor excess protection insurance policy  

• There will usually be a limit to the total amount of claims you can make in a single policy year. 

• Claims related to the use of your vehicle for commercial or business purposes are often excluded. 

• Claims resulting from breakdowns or misfuelling of your vehicle might not be covered.  

• Any claims already made under your standard motor insurance policy before the start date of your Motor Excess Protection policy will typically not be eligible for coverage. 

How much does motor excess protection insurance cost? 

As you might have already guessed, since no two policies are the same, there is no fixed cost for this type of policy.  

The cost of your policy depends not only on your personal details, your driving history and habits and the vehicle you drive, but also on the insurer you choose and their pricing strategy. 

However, to give you an idea of what you might pay for a policy, Money Supermarket (2023) reports that motor excess insurance could start at around £20 per year.  

Is taking out a policy worth it? 

Whether motor excess protection is worth it depends on various factors that can differ from person to person. So, we can’t give you a fixed answer to this question.  

However, if you’re considering taking out this type of insurance, but you’re not sure whether the benefits are worth it for you, we can help you weigh up your decision.  

According to Go Compare (2024), compulsory excess usually costs between £150-200 per claim. So, with the average motor excess insurance policy costing just £20 per year, you could find yourself saving up to £180 per claim.  

And, if you’re still unsure, consider asking yourself these questions: 

• Am I at risk of needing to make a claim? The more likely it is you’ll need to make a claim, the more beneficial motor excess insurance is. So, those who are frequent drivers might want to consider taking out a policy more carefully.  

• Can I afford to cover the excess myself? There’s a chance you’ll never need to make a claim, so if you’re happy to fork out for your excess on the off chance you need to pay it, paying for yearly cover might not be worth your while. 

• Can I afford to pay the policy premiums? While additional insurance can be extremely helpful in the long run, putting yourself under financial stress to take out a policy isn’t a great idea. 

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Also see: Is motor excess protection insurance worth it?

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Where can I buy a policy? 

When it comes to investing in insurance policies, it’s essential to take a step back, assess your needs, and compare different options to ensure you’re making the right choice for your situation. Avoid the temptation to rush into a purchase and take the time to research and compare various policies to find the perfect fit for you.  

But, if you think motor excess protection insurance might be the right policy for you, why not check out coverage from Save More Money? Our policy could provide you with just the right coverage and the peace of mind you need.