When you get a quote for car insurance it is quite possible that your main concern is that you get the cover you require for a reasonable price. However, one of the features of motor insurance is the excess payable.
A compulsory excess is the excess that you will have to pay towards the cost of any claim and the excess can vary between different insurance companies. There are a number of factors that impact upon how much excess is payable but typically the compulsory excess may be in the region of £100 to £350.
In addition to the compulsory excess there may be the option to pay a voluntary excess. A benefit in doing this is that it will reduce how much you will have to pay for the cover. You may be able to say how much voluntary excess you are prepared to pay.
As well as the above excesses, an insurer may impose an excess for a young motorist.
So, how many motorists bother to check what excess is payable before taking out the cover? Well, some interesting research has been carried out on behalf of the comparison website GoCompare that has revealed that around 65% of people arranging car insurance do not bother to check what the policy excess is on the motor insurance policy. We are sure that you will agree that is a very high percentage.
Furthermore, 6% of motorists did not appreciate that he or she would have to make some financial contribution towards the cost of the repairs to their vehicle.
How do motorists go about finding the monies to cover the policy excess in the event of claiming on their car insurance policy? Well, 33% of motorists said that they would dig into savings, 22% would utilise a credit card and 30% of motorists would find the funds from their income.
So, if you are looking for cover for your car for the first time or your existing policy is coming up for renewal then you may wish to pay attention to the excess payable as part of your decision making process. Obviously, you do not really want to find yourself in the position of being unable to pay the excess on your car insurance policy.