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.
16 million drivers prepared to risk £750 for a car insurance saving of just £1 a month according to new research from @uSwitchUK https://t.co/4odp0oxC7S
— uSwitch PR Team (@uSwitchPR) February 2, 2018
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.
“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?”
“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 per cent compared with 2016.
The price comparison site also warned last month that the average premium could rise above £900 this year.
