This is provided on and insurance "franchise" basis. This works in a similar way to an excess but there is a significant difference.

The excess stated is the minimum amount of damage which must be attained before insurers become liable. Only when damage exceeds the amount of your policy excess are the insurers liable to pay this amount in full. Where damage remains below the stated excess there is no claim.

Example: If your excess is £2,000 this is the franchise limit. The damage to the vehicle must be over £2,000 before insurers are liable for the full amount of £2,000. If the damage is under £2,000 you will receive nothing.