Motorists opting for a large voluntary excess on their car insurance could be taking an unnecessary risk, new research suggests. An investigation by price comparison site uSwitch found that the average annual premium with a voluntary excess of £1,000 was £318 – just £12 cheaper than policies with a £250 excess.
It means motorists could face being liable for an extra £750 of damage in the event of a claim for a saving of just £1 per month on their insurance. The research also found the average cost of an annual premium was the same with a £1,000 voluntary excess as it was at £500, meaning motorists were risking a high excess for no reward.
Rod Jones, insurance expert at uSwitch.com, said: “Worryingly, a large number of drivers are taking on huge financial liabilities in exchange for tiny annual savings on their motor insurance.
Source: PA.“While many think that opting for a policy with a higher level of excess will save them money, drivers should ask themselves if an additional risk of £750 is really worth an average saving of just £1 a month, and would they be put off making a claim knowing they’d have to pay a significant sum for doing so?”
He added that about 1.6 million people made a claim each year on a policy with a voluntary excess of more than £250, saying: “We urge those looking to renew or switch their insurance to think seriously about the level of risk they want to take financially before they commit to a new annual policy.”
The cost of car insurance has risen dramatically recently. Last October, Confused.com released its latest price index, showing that the average driver paid £838 per year for their premium – a rise of 14% compared with 2016. The price comparison site also warned last month that the average premium could rise above £900 this year.
