What does it mean if your insurance policy has an excess of £500?
- A The insurance company will pay the first £500 of any claim
- B You'll be paid £500 if you do not claim within one year
- C Your vehicle is insured for a value of £500 if it's stolen
- D You'll have to pay the first £500 of the cost of any claim
Why this is the 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.
Why the other answers don't fit
- A
- The insurance company will pay the first £500 of any claim — That is the excess the wrong way round.
- B
- You'll be paid £500 if you do not claim within one year — A no-claims discount reduces a future premium; it is not a payment to you.
- C
- Your vehicle is insured for a value of £500 if it's stolen — The excess is not a valuation of the car.
Where this comes from
- Driving: the essential skills — section 2
Rule numbers link to The Highway Code on gov.uk.
Where this question comes from
The question, its options and the explanation are reproduced word for word from the DVSA revision question bank under licence. The licence requires them to appear unaltered, so we cannot reword them and neither can anyone else — that is why you will meet the same wording on other sites. Everything else on this page is written by Theory Hub: the explanation of why each wrong answer is wrong, the topic guide and the revision notes.
Asked in: Car
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