We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Insurance: Increase the excess and up goes the premium?
davidlizard
Posts: 1,582
Forumite
in Motoring
Currently going through the annual event of getting motor insurance quotes.
The policy I would like to take out: £500 excess is £132.
However, if I put the excess up to £1000, then does the cost go down? No it goes up to £148!
An excess of £500 gives the cheapest quote. Increase or reduce it and my premium goes up! Who in their right mind would want this?
Can anyone please explain the logic behind this - why if my excess goes up then my premium goes up - surely I would be less inclined to claim and be more cautious with a higher excess?
And a general rant: When selecting my address, I would guess that 99% of their customers live in the UK as its a condition of insurance. So why do they make me scroll past Albania, North Korea and Turkmenistan to get to the UK when entering my address?
The policy I would like to take out: £500 excess is £132.
However, if I put the excess up to £1000, then does the cost go down? No it goes up to £148!
An excess of £500 gives the cheapest quote. Increase or reduce it and my premium goes up! Who in their right mind would want this?
Can anyone please explain the logic behind this - why if my excess goes up then my premium goes up - surely I would be less inclined to claim and be more cautious with a higher excess?
And a general rant: When selecting my address, I would guess that 99% of their customers live in the UK as its a condition of insurance. So why do they make me scroll past Albania, North Korea and Turkmenistan to get to the UK when entering my address?
0
Comments
-
Sounds like a glitch in the system. Try speaking to them and pointing this out to see if £1000 excess is a possibility at a lower premium.0
-
davidlizard wrote: »Currently going through the annual event of getting motor insurance quotes.
The policy I would like to take out: £500 excess is £132.
However, if I put the excess up to £1000, then does the cost go down? No it goes up to £148!
An excess of £500 gives the cheapest quote. Increase or reduce it and my premium goes up! Who in their right mind would want this?
Can anyone please explain the logic behind this - why if my excess goes up then my premium goes up - surely I would be less inclined to claim and be more cautious with a higher excess?
And a general rant: When selecting my address, I would guess that 99% of their customers live in the UK as its a condition of insurance. So why do they make me scroll past Albania, North Korea and Turkmenistan to get to the UK when entering my address?
No real logic to this other than insurance is all about risk assessment.
If a punter is asking for £1000 voluntary excess, then chances are he himself knows he's a high risk and is doing so to get the premium down. If the proposer thinks he's a high risk, then the insurer simply agrees.
Similar strange effects can sometimes be found when comparing TPF&T Vs comprehensive insurance. TPF&T would logically be cheaper, but not always the case."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
If a punter is asking for £1000 voluntary excess, then chances are he himself knows he's a high risk and is doing so to get the premium down. If the proposer thinks he's a high risk, then the insurer simply agrees.....
Surely the opposite applies!
A punter volunteering to pay £1000 excess would be saying "I am unlikely to claim", not be a high risk and be making lots of claims at £1000 a time!
And the OP is hardly high risk if his premium is £132!0 -
Had the same thing last time I was getting quotes. FC cheaper than TPFT or TPO and £100 xs brought the cheapest quote.
Never associate with idiots on their own level, because, being an intelligent man, you'll try to deal with them on their level - and on their level they'll beat you every time.
Being hated by idiots is the price you pay for not being one of them.
Jean Cocteau 1889-1963
0 -
Can't understand why it would go up but if your "net" premium is only £132 can't believe it would make a fat lot of difference either way , that would just about cover uninsured drivers and admin costs, not forgetting profit;)"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
If you pick a particular insurer, a higher excess will almost certainly mean a lower premium, but each insurer will have a different discount they give for each level of excess.
If you're using an comparison site they will be sending the details through many dozens of insurers' pricing models, each of which places different weight on different factors (including the excess) , so it's not surprising.
When I was finding moped insurance for my 16yo daughter, it was cheaper to buy TPFT cover with a £500 excess (way more than the bike is worth) than TPO cover! And it was cheaper to add me as a named driver even though I have no intention of riding it.We need the earth for food, water, and shelter.
The earth needs us for nothing.
The earth does not belong to us.
We belong to the Earth0 -
Probably find that statistically more people with £1000 excess have accidents than people with £500 excess.“I may not agree with you, but I will defend to the death your right to make an a** of yourself.”
<><><><><><><><><<><><><><><><><><><><><><> Don't forget to like and subscribe \/ \/ \/0 -
my insurer calculates it online discount via good thing such as security place where kept etc.
so i get a 40% discount online with my details including the 10%, when i touch the exces slider the premium intend to creep up, so having £50 excess is the cheapest for me without any legal breakdown foreign use options.
i then take their quote online and a compared quote from another unrelated company, and haggle.
if i get a stubborn IDGET on the phone i just call back the next day at different time and re start the haggle again.
xyz is cheaper with the like for like quote here, perhaps you could do better with 0 excess and throw legal cover and breakedown in free for me and ill stick with you.
my renewal is due, i compared hundreds of quotes but my renewal is the cheapest with 70% discount, but my excess was high for the first year due to no NCB (not because i been in crashes but on as named driver with dads car for years) but my renewal came through with the same excess, i called them up, said that xyz can offer me £50 voluntary excess at a cheaper price and breakdown and legal what can you do. they reduced the the same £50 excess and reduced the policy by £45 threw in legal and breakdown comprehensive cover including home start and unlimited call out, resulting in over £130 worth of free cover.
i suppose the excess thing is being factored into how likely you are as a risk now too?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.8K Banking & Borrowing
- 254.9K Reduce Debt & Boost Income
- 456.2K Spending & Discounts
- 248.3K Work, Benefits & Business
- 606K Mortgages, Homes & Bills
- 179K Life & Family
- 263.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.7K Read-Only Boards