The excess you have agreed to pay can be found on your policy documents. It is made up of two parts:

• The compulsory excess, which is set by the insurer. It’s the amount you must pay in the event of a claim.

• And the voluntary excess, which is the amount you agreed to pay on top of the compulsory excess in the event of a claim.

So if you claim for damage to your car, and the insurer had set your compulsory excess as £200 and your voluntary excess is £100, you would pay a total excess of £300. This could be paid directly to the garage if the car is being repaired or deducted from the settlement your insurer gives you if the car is a total loss.

You can choose a voluntary excess of £0, but generally, choosing a higher voluntary excess can make your premium cheaper.