Revision question · Band 3 driving test, disabilities, law

What does it mean if your motor insurance policy has an excess of £100?

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 £100 of any claim

You'll be paid £100 if you don't have a collision

Your vehicle is insured for a value of £100 if it's stolen

You'll have to pay the first £100 of any claim

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You'll have to pay the first £100 of any claimThis was the right answer

This is a method used by insurance companies to keep annual premiums down. When you agree to an excess, it means that, in the event of a claim, you'll pay the agreed amount before the benefits of the policy will apply. Generally, the higher the excess you choose to pay, the lower the annual premium you'll be charged.

Reviewed reading for this question

Vehicle insuranceReviewed guidance summary · A cover note is temporary evidence. At least third-party cover must include the actual driver and use; a policy excess is the amount borne first on a claim.

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