Excess Tips for Cheaper Car Insurance

Increasing your car insurance excess can save you money on your car insurance. Have a read our car insurance excess explained page before deciding whether increasing your excess is the right choice for you.

Increasing Excess For Cheaper Car Insurance

When you make a claim you have to pay the first part of it through your excess. The higher your excess the more you have to pay towards the claim. As a result, the higher you set your excess the more likely your insurance company is to lower your premium as it presents a lower potential cost to them.

Should You Increase Your Car Insurance Excess?

In some cases it is worth increasing the excess to save money on the insurance premium. Let's say, for example, your quote was £1000 and this included a compulsory excess of £200. If you add a voluntary excess of another £100 this might bring the quote down to as low as £900.

In this case it would definitely be worth increasing the excess. The £100 you save on the premium would only be used in the event of a claim where you had to pay the excess, whereas without upping the excess you would pay the £100 as part of the policy cost.

Sometimes when you increase the excess the premium may only drop a little. You then need to decide whether that small saving now is worth the higher excess in the event of a claim.