Adding voluntary excesses 'could prove expensive'
Published On 8 August 2007
While adding voluntary excess to a car insurance policy can reduce premiums, it can prove to be a false economy, a new study shows.A recent survey from the consumer website uSwitch.com suggests that UK drivers already pay £8.5 billion to insure their cars every year. However, around 50 per cent of people also have to pay more if they have an accident - as a result of their policy excesses.
Around 12 million drivers in the UK have a voluntary excess on their car insurance policy - typically ranging from £167 to £1,020.
This is in addition to the involuntary excess on most car insurance policies, which averages £79.
The website warns that cutting just £100 from insurance premiums could add ten times that amount if the driver has to make a claim.
Aron Thompson, head of insurance at the site, commented: "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 per cent or by up to £128 a year, but this is not the best option for every driver.
"There is no benefit for consumers to choose policies that will force them to fund the cost of a claim themselves because the voluntary excess level is too high."
A recent report from the AA suggested that the average cost of fully comprehensive car insurance in the UK has risen to £822.
