The research and analysis firm has found that average policy excess costs for even cheap car insurance cover has been on the rise at an alarming rate since 2008. It also said that an even higher number of travel insurance providers have begun to charge the excess multiple times on a single claim, as well.
In defence of rising excess costs, the Association of British Insurers recently said that excess fees aidin keeping premiums down. However, many insurance experts claim that policy premiums have been rising steadily as well, giving the lie to the ABI statement and making consumers scratch their heads in befuddlement.
Defaqto conducted financial research on the excesses levied on standard insurance policies from 2008, finding that prices have trended upwards across the board. It found that 25 per cent of car insurance policies had a windscreen replacement excess fee of £75, yet today nearly 50 per cent of policies have such an excess for replacing a damaged windscreen.
Defaqto also encountered the phenomenon in home insurance cover as well. The financial research firm discovered that half of such policies have at least £100 of excess as a standard today, while in 2008 just less than one of every three had such.
ABI general insurance director, Nick Starling, stated that applying excesses is one way to keep insurance cover affordable. The price inflation that’s been gripping the motor insurance industry would be even worse without excess fees holding them back, he added, though consumers remain sceptical of such a claim.