Car Insurance Excess

The point of a car insurance excess is to provide a set amount that a driver must pay in any event of a car insurance claim. For example, if your car insurance excess stands at £200, you must pay the first £200 of repair costs to your vehicle. The influence of car insurance excess can work to driving down the overall cost of a car insurance premium.

By agreeing to increased compulsory car insurance excess, this can decrease your overall premium following your significant financial commitment in the event of a claim. There is an alternative to obtaining a cheaper car insurance quote. Voluntary excess allows drivers to pay an even higher excess than the compulsory excess set by the provider. This works to reduce your overall insurance premium further as it further minimises the financial risk to the insurer.

It is worth considering the pitfalls of owning a low value vehicle and agreeing to a high voluntary car insurance excess. The excess due in the event of an accident could potentially cost as much as the car itself. As a means of cutting down your car insurance premium, increasing your car insurance excess is a viable option. However, do bear in mind the financial implications of a significant alteration to your policy.