Some vehicle breakdown cover policies are sold with an 'excess' - or the option of paying one. An 'excess' is simply a one-off payment made by the insured customer after the delivery of a service - in this case breakdown recovery. For example, a policy might come with a £30 excess - which goes towards recovery costs.
The higher the excess, the lower the premium.
Compulsory and voluntary excess
Excess payments may be compulsory with some cover policies, or they may be voluntary. Within the UK vehicle breakdown insurance industry, excess payments - either compulsory or voluntary - are uncommon.
Understanding the Payment Process for Excess
When you make a claim on your breakdown cover, the excess is the portion of the cost you agree to pay yourself. This amount is usually agreed upon when you take out the policy and is clearly stated in your policy document.
Here’s how the payment process usually works:
- Report the Breakdown – Contact your provider and request assistance.
- Service is Delivered – Recovery or roadside help is carried out.
- Excess Amount Confirmed – The provider confirms the excess you need to pay based on your policy.
- Payment Method Offered – You may be given options such as card payment, bank transfer, or secure online payment.
- Excess Paid – You pay the agreed amount either before the service is completed or immediately afterwards.
When to Expect Your Excess Payment?
Excess payments are usually due when the claim is processed or immediately after the assistance is completed.
For example if the recovery service costs £120 and your excess is £30 you will pay the £30 and your provider will pay the remaining £90. This way you know exactly what you’ll need to pay and can budget ahead when relying on your breakdown cover.
Why do some breakdown providers offer their services with an excess?
By agreeing to pay an excess in the event of a breakdown, the customer will generally pay less for their cover. This system is more commonly seen in other types of insurance, such as vehicle, home or pet cover.
According to a Forbes Advisor UK poll, only around 32% of UK drivers have any form of breakdown cover in place. Those who choose a policy with an excess can often benefit from lower premiums, but it’s important to weigh the savings against the likelihood of making a claim.
How do I find out about excess payments in my policy?
Whichever breakdown cover provider you choose, you'll be able to find out about any excess payments in the policy document.
Read your policy document
It’s important to understand what is and is not covered by your breakdown cover policy. You should choose a policy level based on your driving habits. For example, if you regularly undertake journeys across the UK, a policy with 'nationwide' cover would be more suitable.
Frequently Asked Questions
You can usually pay the excess by debit or credit card at the time of the claim. In some cases, providers may allow bank transfers or secure online payments. Payment instructions will be given by the provider when you make a claim.
If you make a claim on your breakdown cover, the excess is typically paid either when the claim is made or shortly after the assistance has been provided. The timing depends on the provider’s policy, but most prefer to collect it promptly to finalise the claim.
