Car insurance premiums are on the up – again – and many of us are searching for ways to save cash on our renewal. Of course, there are the usual answers: using comparison sites, adding named drivers and even buying a lower-risk car; but one firm claims that its motor excess insurance could be a further way to save cash.
Essentially, motor excess insurance is an extra policy on top of your standard car insurance policy. While you’d usually have to pay a hefty insurance excess if involved in a crash deemed your fault, motor excess insurance will pay out in such a scenario to cover your excess, leaving you nothing more to pay (except, perhaps, increased premiums next year).
So how will paying more for an extra policy save you cash at renewal time? Ramping up your optional insurance excess will reduce your premium and, according to Questor Insurance, using its motor excess insurance cover could work out cheaper than simply reducing your excess.
It provides some examples, based on a policy for a 2016 Fiat Punto insured on a fully-comprehensive policy.
Example one is a 17-year-old driver with a £250 excess quoted at £2,005.85. If the excess amount is increased to £1,000, the insurance premium reduces to £1,742.92, equating to a 13 percent saving (£262.93). Insurance excess cover costs just £45.21, and will reduce that £1,000 premium to nothing.
Another example, involving a 60-year-old driver, saves more than £250. Seems pretty good on the face of it, doesn’t it?
The best way of deciding whether this ‘trick’ works for you is to get a few quotes and varying your excess. We can’t vouch for Questor Insurance, nor its motor excess insurance cover, so do your research and read the small print.