Six in ten don’t fully understand insurance excesses
New research shows insurance knowledge is lacking - with Brits confused by excesses, policy exclusions and more
New research from Go.Compare Car Insurance, has revealed many drivers are unsure about key motor insurance terms, especially when it comes to insurance excess.
The comparison site has revealed that just 39%* of respondents fully understand the meaning of ‘Compulsory Excess’ and the same amount (39%) understand ‘Voluntary Excess’ - meaning that six in ten don’t fully understand their car insurance excesses and could face a shock if they need to make a claim.
It’s the youngest drivers with the least knowledge of the insurance term - only 13% of those aged 16 to 24 said they fully understood the meaning of both compulsory and voluntary excess. Meanwhile, it’s those aged 55 and over with the strongest understanding - 57% said they were confident about what compulsory and voluntary excesses are.
With car and home insurance, policies typically include both a compulsory excess and a voluntary excess. These two figures are the amount you will have to pay in the event you make an insurance claim and are either paid upfront or deducted from your settlement.
The compulsory excess is determined by the insurer and cannot be altered, while the voluntary excess is chosen by the policyholder. Opting for a higher voluntary excess may result in a lower premium, but it’s important to make sure you will be able to pay this amount in the event you have to make a claim.
Tom Banks, spokesperson for Go.Compare Car Insurance, commented on the findings: “Excess clearly remains a misunderstood aspect of insurance - and as it can have a considerable financial impact in the event of a claim, this is worrying. While no one wants to spend more time or money when buying a policy, it’s important to make sure that you understand the terms and details of your policy
“It can be tempting to opt for an insurance policy with a higher compulsory or voluntary excess in the hope that it will bring down the cost of your premiums, but it’s vital to ensure that you can afford to pay the excess you are committing to.”
Excess isn’t the only insurance term that is misunderstood - 71% of people said they didn’t fully understand the term policy exclusion, while 61% didn’t understand personal accident cover.**
| Motor insurance term | % of people who don't fully understand the meaning** | |
| 1 | Policy exclusion | 71 |
| 2 | Additional excess | 69 |
| 3 | Legal assistance | 62 |
| 4 | Compulsory excess | 61 |
| 5 | Voluntary excess | 61 |
| 6 | Personal accident cover | 61 |
| 7 | Social, domestic and pleasure | 58 |
| 8 | Driving other cars | 58 |
| 9 | Protected no claims | 56 |
| 10 | Third party, Fire and Theft Cover | 54 |
Tom added: “Before purchasing insurance, it’s important to do your research and pay attention to the fine print - including the limits of the policy cover, the excess levels, and any exclusions in place.
“We recommend using a price comparison website to compare policies side by side, as this will help make sure you find the right level of cover, with excesses that you can afford to pay for should you have to make a claim.”
Drivers who purchase their car insurance through Go.Compare can benefit from £250 free excess cover.*** Up to £250 refunded after a claim is settled, on car insurance purchases only. Offer excludes breakdown, windscreen and glass repair/replacement. Find out more, here: https://www.gocompare.com/free-excess-protection-cover/
For more information on excesses, please visit: https://www.gocompare.com/car-insurance/guide/excess-explained/
Contact Information
Rubie Barker
Notes to editors
Notes to Editor
*The research was conducted by Censuswide, among a sample of 2000 UK nationally representative respondents. The data was collected between 08.01.2025 - 10.01.2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.
**These stats are the inverse of those when asked “In relation to car insurance policy, which of the following terms would you say you fully understand, if any at all? (Select all that apply)”
***Up to £250 refunded after claim settled. Car insurance purchases only. Excludes breakdown, windscreen and glass repair/replacement.
About Go.Compare
Go.Compare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.
It does not charge people to use its services and does not accept advertising or sponsored listings, so all product comparisons are unbiased. Go.Compare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.
When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. It is this approach to comparing products that secured the company an invitation to join the British Insurance Brokers’ Association (BIBA) in 2008, and it is still the only comparison site to be a member of this organisation.
Go.Compare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest and works with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.
Go.Compare is part of Future Plc and is authorised and regulated by the Financial Conduct Authority (FCA).
More information can be found here www.gocompare.com or here https://www.futureplc.com/brands/