When taking out a motorcycle or scooter insurance policy, you will be made aware of the excesses involved that in the event of a claim that is your fault - you may have to pay out.

In this blog, we are going to be going through what insurance excess actually is as well as when and how you pay for it.

So without further ado, let’s get into it - shall we?

An insurance excess is an agreed amount that the policyholder will pay towards the cost of their insurance claim. For example, a £100 excess means that the policyholder will pay the first £100 of any claim, with the insurance company covering the remainder. This is why the excess is known as the first part of the claim cost.

Excess was introduced to deter people from fraudulently claiming on their policy or making frequent small claims, but it can also give policyholders more flexibility in how much their policy costs.

When it comes to choosing an insurance policy for your two-wheeler, there are two different excess amounts you will want to make yourself aware of. These are as follows:

• Compulsory excess
• Voluntary excess

A compulsory excess is set by the insurer at the point of sale (POS) and as the name suggests, is mandatory to pay if you make a claim on your insurance.

Typically, the amount of compulsory excess you will have to pay will be determined by the type of motorcycle insurance you have (third party, third party fire and theft, or comprehensive).

Voluntary excess is the optional amount that you can choose to add on top of your compulsory excess. By offering to pay more upfront, this can often help to reduce the price of your premium.

It is worth noting that your voluntary excess amount is always optional, and you will need to confirm with your insurer how much you want to pay in the event of a claim at the start of your policy.

Remember to always pick an amount that you could realistically afford on a day-to-day basis. Picking a large excess amount to make your insurance payments cheaper. However, if this excess amount is beyond you capability of affording this would not be a sensible option.

The compulsory excess on your insurance will be calculated based on a variety of factors such as (but not limited to):

• Riders age
• Number of years with a licence
• The area they live in
• Value of the vehicle

On the other hand, voluntary excess is not calculated as it is determined by the policyholder.

You will pay your excess at the start of the claims process. The exact amount you will pay will be listed in your policy schedule, so if you ever want to remind yourself of the amount that is on there - always remember to give your documents a check!

When setting up your motorcycle insurance policy, many insurers out there can offer you Excess Protection.

Excess protection is an add-on product that you can pay for, enabling you to claim back the cost of your excess once the main claim, under the vehicle policy, has been settled.

So there you have it, we hope you enjoyed our rundown of everything regarding motorcycle insurance excesses.

Last but not least, if you have any other questions or queries on how insurance excesses work, make sure to give us a call on 01379 646 529 or request a call back via our website!