Car insurance excess is what you have to pay out if you have to make a claim on your car insurance.

For example if you have a car insurance cover and your excess is set to £250 and you are involved in an accident where your own insurance company will have to pay out you will be required to pay the first part of the claim. So if the value of the claim is £1000 you will have to pay out the first £250 of this and your insurance company will cover the rest (£750).

Compulsory Excess
Compulsory Excess is an excess that the insurance company has stated must be paid. This is usually applied to young or new drivers as they are at a higher risk to have an accident.

Voluntary Excess
Voluntary Excess is added if the person taking out a car insurance policy adds it. The reason for voluntary excess can help to reduce a car insurance premium as in the event of an accident there will be less for the insurance company to pay.

Car Insurance Excess Example:
Compulsary Excess: £300
Voluntary Excess: £250
If the above person needs to make a claim on their own insurance then they woul dhave to pay the first £550 of the claim (this includes the £300 compulsary excess that the insurance company states and then also the voluntary excess of £250 also)