Why opting for a cheap car insurance premium could actually cost you so much more
Car insurance premium costs are said to be decreasing in the UK, with it estimated they have dropped by 11 per cent on average over the course of 2018.
However, millions of drivers will be still be paying huge premium costs for the privilege to drive on the roads in Britain.
One common cost-saving measure a driver may employ while purchasing your cover would be to opt for a higher excess.
The excess is the amount of money you have to pay when making a claim on your insurance.
Cheaper premiums typically have higher excesses and pricier ones will more often than not have a lower excess.
While it may seem like the best option to go for the cheapest cover possible, it could cost you in the long run if you have to make a claim.
The excess amount ultimately comes down to personal preference but you could be losing out by opting for a higher one to save money off your overall premium.
Matt Oliver, from GoCompare car insurance, explained to Express.co.uk how this is the case.
He said: “While higher excesses generally result in lower premiums, choosing to pay a higher excess is often down to personal preference.
“Insurance can be one of those things we buy, hoping we’ll never have to use it – so many people are happy to pay a higher excess and take this chance, with the view of hopefully never having to claim.
“However, what people have to weigh up is the affordability of having a higher voluntary excess.
“For example, while you may be saving £100 on the initial premium, could you afford to pay £500 of voluntary excess, with compulsory excess on top of this?
“It’s also worth remembering that if you’re a young or inexperienced driver, your compulsory excess may be higher than a more experienced driver, as you are deemed a higher risk.”