- Average car insurance quote for drivers opting for a £1,000 voluntary excess is £318 a year; just £12 cheaper than a policy with a £250 voluntary excess
- Nearly four in ten (39%) drivers chose a voluntary excess of over £250 and take on an additional liability of up to £750, but the average saving is just £1 a month
- One in ten drivers (10%) are likely to claim each year, meaning 1.6 million drivers could be left significantly out of pocket
- Average cost of cover with a £500 voluntary excess is the same as for a £1,000 voluntary excess policy – £318 – despite the additional financial liability
- uSwitch.com calls on drivers to fully investigate their options and consider what level of excess they are willing to be liable for before choosing a car insurance policy.
Over 16 million Brits are taking on up to £750 of additional financial liability through their car insurance policy choices for average savings of just £1 a month, according to new research from uSwitch.com, the price comparison and switching service.
While the majority of British drivers opt for car insurance policies with an optional excess of £250 or less, 39% choose an excess of up to £1,000, for which they save just £12 annually on average when compared to the cost of a policy with a £250 excess.
Considering more than one in ten UK drivers (11%) make a claim on their car insurance policy each year, the 1.6 million drivers who opted for an excess of over £250 and end up making a claim could be left significantly out of pocket when it comes to footing the insurance bill.
Interestingly, drivers who choose the highest voluntary excess option, usually £1,000, might think they will benefit from a significant saving on the annual policy cost. However, in most cases, they are likely to pay the same premium as those who opt for a lower £500 excess, but would be left shelling out £500 more if it came to making a claim.
Rod Jones, insurance expert at uSwitch.com, says: “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?
“With more than one in ten of those with a motor insurance policy likely to make a claim each year, 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.”