When we are looking at getting car insurance quotes we often are tempted to bump up our excess to reduce the monthly cost. This means that should we have an accident and we have a five hundred pound excess, we would be required to pay this and the insurance company would stump up the money for any further bills.
But insurance bodies are calling on customers to avoid ramping these excesses up too high, as although you are saving money on a monthly basis, if you were to have an accident you may not be able to afford the lump sum to pay out before the excess kicks in.
A poll of brokers found that sixteen percent of those asked said that they had noticed more people increasing their excess in the economic downturn to save them a little extra on a monthly basis.
Graeme Trudgill, technical and corporate affairs executive at The British Insurance Brokers Association pointed out: "In the long run people do have claims, that's why insurers exist and some people are going to find a hefty bill if they are going for a big excess."
It comes in the light of a new report that said that car insurance customers are more likely to foot the bill if they have a prang rather than go to their insurers for fear of losing their No Claims Bonus . It may save you money, but when you answer the accidents question, you are therefore being fraudulent and this is adding to quote prices for everyone.