Many drivers have the preconception that insurance premiums can be significantly cut by increasing your excess, but a new study has found nearly no difference between the price, with excesses varying by £750.

Insurers have been accused of ripping off motorists after research by comparison website found no difference between the price of a premium with a £500 and £1,000 excess – costing £318.

The excess on a policy is the amount the motorists has to pay in the event of an accident before the insurer pays the remainder.

The study by uSwitch found that raising your excess from £250 to £1,000 shaved just £12 off the price of premiums.

An estimated 16 million drivers choose to increase their excess in the hope it reduces premiums. However, as one in ten motorists make a claim each year, this means that 1.6 million drivers are being ripped off annually.

Rod Jones, insurance expert at, said: “Drivers should ask themselves if the additional risk is worth the saving, and would they be put off making a claim knowing they would have to pay a significant sum for doing so?

“With so many people making a car insurance claim each year, we urge those looking to renew or switch their cover to think seriously about the level of risk they want to take financially before they commit to a new annual policy.”

The comparison website found the average premium for drivers with no excess to be £368. This fell to £330 with a £250 excess.

It is yet another piece of negative news for motorists, as just last week revealed that insurance premiums were expected to reach their highest point by the end of 2018.

Ted Welford


February 2, 2018

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