Motor insurance excess watch out

givememoney

This may have been mentioned before, if so I appologise.

Hubby checked out insurance for our car and discovered that by putting in an excess of £100 he got one figure and just out of interest he amended that figure to an excess of £200 and the overall saving was a mere £3.

Therefore you may be under the wrong impression that by going for a higher excess you are saving money on your insurance when in fact you would be losing if you did indeed have a claim.

darich

givememoney wrote: »

Hubby checked out insurance for our car and discovered that by putting in an excess of £100 he got one figure and just out of interest he amended that figure to an excess of £200 and the overall saving was a mere £3.

This does seem like a very small amount so you're right not to pay the higher excess.

givememoney wrote: »

Therefore you may be under the wrong impression that by going for a higher excess you are saving money on your insurance when in fact you would be losing if you did indeed have a claim.

Not 100% true. What you say is only correct where your company cannot claim back all expenses in paying out your claim. If you're in an accident and it's the other driver's fault, then yes, you'll be out of pocket for the larger amount but the other driver's company will pay out and you'll be reimbursed.

For the small amount in this case you probably would be better off with the lower excess and higher premium, however, where the difference is larger, remember you only lose out if the accident is your fault or you claim on theft or vandalism where your company cannot reclaim its costs.

It is something to remember though.
:beer:

vikingaero

Givememoney,

I'd presume that being married and not boy/girl racers you fit the typical low risk profile for most insurers. Therefore your premium is low and any effect on the premium of a discount will be small.

Contrast that to a boy/girl racer who may have to pay £3k for insurance and an increase in excess will result in a much greater discount.

loracan1

When renewing my insurance they'd automatically quote for 150 excess, asking them to reduce it to 100 made not one penny difference. You also need to keep an eye out for voluntary excess on top of compulsary.