Ask the insurer for a written breakdown of how the excess was applied and request a correction in writing, then set a short deadline for a final response. If no action is taken, the claim often stays settled on the insurer’s figures and the excess remains deducted or billed. Keep paying any undisputed amount to avoid arrears while the excess point is challenged. If the insurer will not correct it, move the complaint to the insurer’s formal process and prepare to escalate once the final response window has passed.
What the problem is
An insurance excess applied incorrectly usually shows up when a UK claim is being settled and the payout, repair authorisation, or invoice does not match what was expected from the policy documents. It commonly affects motor and home claims, especially where there is a compulsory excess plus a voluntary excess, or where a separate excess applies for a specific type of loss (for example, escape of water, accidental damage, or theft). It often appears after the insurer has issued a settlement figure, after a repairer has been instructed, or after a partial response has been given to an early query rather than a full complaint outcome.
This problem also crops up when a policyholder has more than one policy involved, such as a buildings insurer and a managing agent’s block policy, or where a claim is handled through a broker and the messages get relayed in fragments. A common moment is when the insurer says the claim is accepted but the payment is lower than expected, or when the repairer asks for an excess payment that does not match the policy schedule. By the time it is noticed, the claim is often already marked as “settled” on the insurer’s system, which can make the next conversation feel like a reopening rather than a simple correction.
Why this happens
Most incorrect excess issues come from how the claim is categorised and how the policy schedule is read by the handler. The excess can be misapplied when the insurer treats the incident as a different peril than the policyholder described, when a claim is split into more than one “event”, or when a repair network applies a standard excess without checking the specific policy endorsements. Another common cause is double-counting: the compulsory and voluntary excess are both taken, but then an additional “special” excess is also applied as if it stacks, when the policy wording indicates it should replace one of them for that claim type.
Insurers also work to internal targets around claim cycle time and settlement, which can lead to quick decisions that are not revisited unless challenged with clear documentation. Where a broker is involved, the insurer may assume the broker has already explained the excess, while the broker assumes the insurer has applied it correctly, leaving the policyholder to spot the mismatch. A typical organisational response pattern is that the first reply focuses on restating the excess amount rather than showing the calculation and the policy basis for it.
Your rights in practice
In UK cases, the strongest leverage is usually a precise request for the insurer to show how the excess was calculated against the policy schedule and any endorsements that apply to the claim type. Insurers tend to respond better when the challenge is framed as a mismatch between documents and outcome, rather than a general complaint about fairness. If the insurer cannot point to the relevant policy terms and the claim notes that justify the amount, the excess is often adjusted or refunded without needing a full dispute about liability.
It also helps to separate two issues: whether the claim is covered, and whether the excess has been applied correctly. Even when the insurer is right to apply an excess, the amount and whether it should be taken once or more than once is frequently where errors sit. A practical approach is to accept the covered decision (if that is not being disputed) while insisting on a corrected settlement figure and a clear audit trail. Where the insurer uses a repair network, it is usually effective to require the insurer to instruct the repairer on the correct excess rather than trying to negotiate the figure with the repairer directly.
Official basis in the UK
The Financial Ombudsman Service is the main route for resolving disputes about how an insurer has applied an excess when the insurer will not put it right through its own complaints process. In practice, the Ombudsman looks at the policy documents, the claim file, and the communications to decide what the insurer should have done, and it can require the insurer to correct the settlement and refund any overpaid excess. The Ombudsman normally expects the insurer to have had the chance to issue a final response first, or for the complaint to have reached the point where the insurer is allowed time to respond and has not done so.
Use the Ombudsman’s process as described on GOV.UK guidance, and keep the focus on the documentary mismatch: policy schedule, endorsements, and the settlement calculation. When the paperwork is clear, the dispute often turns on a small number of pages rather than the whole claim history.
Evidence that matters
Start by collecting the documents that show what excess should apply and the documents that show what was actually taken. The aim is to make it easy for a complaint handler (and later an external reviewer) to see the gap in one reading. Keep everything in date order and avoid sending large photo dumps without context, because that tends to slow down UK complaints teams and leads to generic replies.
What to collect includes the policy schedule for the relevant period, any endorsements that mention claim-type excesses, the claim acceptance message, and the settlement statement or repair authorisation showing the deduction. If the insurer changed the claim category during handling, keep screenshots or emails that show the earlier description and the later label. If the excess was paid to a repairer, keep the invoice and proof of payment.
Key documents
Bring together the schedule page showing compulsory and voluntary excess, the endorsement page for the relevant peril, and the insurer’s settlement breakdown. If the insurer is saying there were multiple incidents, keep the timeline and any photos or contractor notes that show it was one event.
Avoid missteps
Do not edit PDFs or annotate originals in a way that could look like the document has been changed; add notes in a separate file. Do not rely on telephone summaries alone; ask for the insurer’s position in writing. Do not send bank statements beyond what is needed to show the excess payment, because it can distract from the core issue.
Quick checklist
- Policy schedule and endorsements for the claim date
- Settlement letter or repair authorisation showing the excess taken
- Claim reference, timeline, and any category/peril labels used
- Invoice and proof of excess payment (if paid)
Three common mistakes are accepting a verbal explanation as final, disputing the whole claim when only the excess is wrong, and sending incomplete policy pages that omit endorsements. One thing not to do yet is to stop paying an agreed instalment plan or premium purely because the excess is being disputed.
What to do next
Move in a set order so the insurer cannot treat the issue as a vague complaint. Start with a written request for the calculation, then a formal complaint if it is not corrected quickly, then escalation once the insurer’s complaint window has passed or a final response is issued.
Request breakdown
Send a short message through the insurer’s online account or by email asking for a written breakdown of the excess applied, including which excesses were used and which policy pages support them. Ask the insurer to confirm whether the excess was applied once or more than once and why. Attach the schedule page and the settlement statement so the handler can see the mismatch immediately.
Raise complaint
If the reply is generic or the breakdown does not match the documents, use the insurer’s official complaints process rather than continuing as “general correspondence”. The complaints route is usually found in the insurer’s website footer under “Complaints”, in the policy booklet, or inside the online account help section. Prepare the claim reference, the policy number, the schedule/endorsement pages, and a one-paragraph summary stating the excess that should apply and the amount actually taken.
Wait timeframe
The normal UK complaint response timeframe is up to eight weeks for a final response. If the insurer corrects the excess, it is usually resolved by an adjusted settlement letter and a refund or recalculated invoice. A typical resolution point is when the insurer issues a revised settlement statement that matches the schedule and endorsements.
Escalate properly
If there is no final response by the end of the complaint window, or the final response refuses to correct the excess without showing a policy basis, escalate to the Financial Ombudsman Service using the insurer’s final response letter or proof of the complaint start date. Keep the escalation pack tight: the policy pages, the settlement breakdown, and the complaint thread. If the dispute is part of a wider breakdown in how the insurer is handling money on the claim, the decision point is whether the issue is only the excess or whether a non-payment problem is developing; where a court judgment later exists and payment still does not arrive, the next steps look different and align more closely with Judgment issued but company does not pay.
Change approach
If the insurer’s position rests on claim categorisation (for example, treating it as two incidents), shift the focus to evidence of a single event and ask for the claim notes that show why it was split. If the insurer blames the repairer for collecting the wrong excess, insist the insurer instructs the repairer and confirms in writing what should be refunded or credited. If the insurer says the policy changed, ask for the exact schedule version that applied on the incident date and the method used to confirm it.
Related issues on this site
If the dispute is really about being charged an excess that was never agreed, or an excess being taken twice across linked claims, the situation can overlap with an Insurance excess dispute where the complaint needs to be framed around the documents the insurer relied on. If the insurer tries to push the matter into a process that then stalls, it can also resemble a pattern where a firm changes tack mid-way and delays resolution, which is covered in similar dispute-handling scenarios on UKFixGuide. These become relevant when the insurer’s responses stop addressing the calculation and start focusing on process instead.
FAQ
Multiple excess charges
Multiple excess charges on one claim usually hinge on whether the insurer has treated the loss as more than one event. Ask for the event count on the claim file and the policy basis for applying the excess more than once.
Voluntary excess missing
Voluntary excess not applied as expected can happen when the insurer has removed it due to a policy condition or a claim-type rule. Request the settlement breakdown showing each excess line and the policy page that allows the change.
Repairer demanded cash
Repairer demanded cash for excess is often a sign the repair network is using a default figure rather than the claim’s confirmed amount. Ask the insurer to confirm the correct excess in writing and to instruct the repairer directly.
Refund timescales
Refund timescales for excess corrections depend on whether the insurer is adjusting a settlement or reversing a card payment. Once the insurer agrees the figure was wrong, ask for the refund method and a dated confirmation.
Before you move on
Put the dispute into writing with the policy pages attached, keep paying anything undisputed, and use the insurer’s complaints route so the escalation clock starts cleanly. Time pressure can show up when a repair booking or settlement acceptance is pushed to happen quickly.
Get help with the next step
Contact UKFixGuide — Share the policy schedule wording and the insurer’s settlement breakdown so the excess mismatch can be set out clearly for a formal complaint.
