The Rising Cost Of Car Insurance Policy Excess Revealed

Thu 29th Aug 2019

A new study has found that the average car insurance policy excess has risen faster than the rate of inflation since 2012.

GoCompare’s research found that some drivers are now paying up to £3,000 for a fire, theft or accidental damage claim, compared to just £475 in 2012. The same report finds that the excess on claims for accidental damage have risen by 26 per cent.

The data looked at 232 comprehensive motor insurance policies in 2012 and compared them with like-for-like policies from 2019.

Lee Griffin, CEO, and founder of price comparison site GoCompare, the company behind the research, said: “Policy excesses are a hidden cost for drivers and they have gone up significantly in recent years.

“There’s also a massive difference in the cost of excesses between insurers. So, when arranging cover, it is essential you compare excess levels rather than just focusing on premiums. And in case the worst happens, check you can afford the excess you’re committing to.

“Some drivers agree to pay a higher amount towards the cost of a claim in return for a lower premium. However, if these drivers make a claim, their voluntary excess is added to the insurer’s compulsory excess – which can add up to a considerable sum.”

The survey also found that only 35 per cent of drivers actually checked the amount of excess when sorting a new policy, whist less than half (45 per cent) knew the amount the of their excess when questioned.