While it can be tempting to try to cut a deal with your insurer by increasing your voluntary excess in order to get discount car insurance quotes, experts say that you need to exercise caution, lest you raise it to a level that would be unsustainable in the event of an expensive insurance claim.
While it’s true that the majority of car insurance companies will offer you less expensive insurance overall if you increase your voluntary excess, you could just be shooting yourself in the foot if you ever end up having to pay that excess. Experts from one major car insurance comparison website say that not only could the long-term savings made by such a decision evaporate in the wake of one expensive claim, in many instances the amount of cash you save by raising your excess may turn out to be quite modest.
Research conducted by the comparison site found the price difference of several levels of voluntary excess to be minimal, after conducting tests. Drivers saved around £190 a year on a £500 excess as compared to those who opted for no voluntary excess at all, which could be significant as long as you don’t end up having to make a claim; otherwise that £190 savings effectively turns into an extra £310 you’ll be paying to meet your excess.
Industry insiders agree that choosing a higher excess to gain access to a more affordable premium price up-front is only cost-effective if you can guarantee you’ll never have to make a claim. However, unless you spend the cash you save on a fortune-teller to predict your future, you may be better off just paying for the extra cover.