UK drivers already spend £8.5 billion every year on premium payments to insure their cars. New research just out by uSwitch.com, reveals that 4.8 million motorists may have to fork out an additional £2.36 billion in excess costs alone each year if they make a claim on their car insurance.
What! This is outrageous and uSwitch.com agrees so is urging consumers to look at the real cost of voluntary excess; a saving of less than £100 on a car insurance premium could end up costing more than ten times this amount in the event of a claim.
Every car insurance policy carries an average ‘involuntary excess’ of around £79 that has to be paid by the policyholder in the event of a claim. This alone is not a huge expense. However, the research shows that on top of this ‘involuntary excess’, 50% (12.7 million) of all drivers also opt for a ‘voluntary excess’, which will vary from an average of £167 to anything up to £1,020.
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.
I am feeling dizzy getting my head around the complicated giddy world of car insurance and the words ‘con merchants ‘ come to mind.
Jackie Violet