Cheap car insurance news
31/08/2007

Online car insurance site warns over high excesses

UK motorists may pay out as much as £2.36 billion each year on motor insurance excesses, according to an online car insurance comparison site.

uSwitch has revealed that millions of motorists sign up to policies with high voluntary excesses in order to help them get a cheaper deal; something which could cost them dear if they need to make a claim on their motor insurance.

A spokesperson for the online car insurance switching service said: "For some drivers, particularly those with less experience, a higher voluntary excess on their insurance policy can reduce their insurance premium by up to 40% or by up to £128 a year, but this is not the best option for every driver.

"With the average cost of a claim currently at £1,636, drivers with a maximum combined excess of £1,099 have to carefully weigh up whether to make a claim or not.

"Although they would get a refund of £537 from their insurance provider, they would also lose at least 2 years no-claims bonus and potentially face a much higher insurance premium the following year," he warned.

The uSwitch spokesperson went on to encourage motorists to shop around in order to get the cheapest car insurance quotes, and to ensure that they understand the terms of the motor insurance policy they sign up to.

 

 

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