The ‘excess’ on an insurance policy is the initial portion of the costs that the policyholder would have to pay themselves in the event of an insurance claim. Here’s an example: If a motorist had a car insurance policy that carried a total excess of £500 and they filed a claim for damage to their vehicle amounting to £2,000 they would have to cover the first £500 themselves, with the insurer covering the remaining £1,500.