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What does it mean if your insurance policy has an excess of £500?

Revision material from the imported DVSA bank includes source-checked Lanekind learning corrections. These corrections are not newly issued official examination questions, and practice does not reproduce a live test paper.

Answer options

The insurance company will pay the first £500 of any claim

You'll be paid £500 if you don't claim within one year

Your vehicle is insured for a value of £500 if it's stolen

You'll have to pay the first £500 of the cost of any claim

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You'll have to pay the first £500 of the cost of any claimThis was the right answer

Having an excess on your policy will help to keep the premium down. However, if you make a claim, you'll have to pay the excess yourself – in this case, £500.

Reviewed reading for this question

Your contribution to an applicable claimReviewed guidance summary · The policy’s excess definition supports the arithmetic without claiming every claim has the same contribution.

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