Drivers' excess bills stand at £2.36 billion
- Published: 08/08/2007
UK motorists pay £2.36 billion in excess on their car insurance every year, a new report claims.
A study, from comparison site uSwitch.com, states that British drivers spend around £8.5 billion annually insuring their cars. In the event of an accident, around 50 per cent of these will have to pay an extra £2.36 billion in excess obligations, the report adds.
Around 12.6 million drivers opt for a voluntary excess on their car insurance policy, paying an average of £247 when they make a claim.
A further five per cent opt to pay an excess of over £379 every time they make a claim - with this proportion rising to 20 per cent in the 17 to 21 age bracket.
"For some drivers, particularly those with less experience, a higher voluntary excess on their insurance policy can reduce their insurance premium by up to 40 per cent or by up to £128 a year, but this is not the best option for every driver," Aron Thompson, head of insurance at independent online price comparison and switching service uSwitch.com, commented.
"With the average cost of a claim currently at £1,636, drivers with a maximum combined excess of £1,099 have to carefully weigh up whether to make a claim or not. Although they would get a refund of £537 from their insurance provider, they would also lose at least two years no-claims bonus (assuming they had at least two years unprotected no claims bonus at the inception of their policy) and potentially face a much higher insurance premium the following year."
A study, from comparison site uSwitch.com, states that British drivers spend around £8.5 billion annually insuring their cars. In the event of an accident, around 50 per cent of these will have to pay an extra £2.36 billion in excess obligations, the report adds.
Around 12.6 million drivers opt for a voluntary excess on their car insurance policy, paying an average of £247 when they make a claim.
A further five per cent opt to pay an excess of over £379 every time they make a claim - with this proportion rising to 20 per cent in the 17 to 21 age bracket.
"For some drivers, particularly those with less experience, a higher voluntary excess on their insurance policy can reduce their insurance premium by up to 40 per cent or by up to £128 a year, but this is not the best option for every driver," Aron Thompson, head of insurance at independent online price comparison and switching service uSwitch.com, commented.
"With the average cost of a claim currently at £1,636, drivers with a maximum combined excess of £1,099 have to carefully weigh up whether to make a claim or not. Although they would get a refund of £537 from their insurance provider, they would also lose at least two years no-claims bonus (assuming they had at least two years unprotected no claims bonus at the inception of their policy) and potentially face a much higher insurance premium the following year."