Want to claim on your insurance? It’s gonna cost you! That was the stark warning this week from financial research firm Defunqto, who are voicing alarm at the extent to which insurance users are falling victim to excess.

According to Defunqto, more than half of UK motor insurers have been increasing their minimum policy excess charges over the past year, and indeed excesses have been rising “alarmingly” since 2008. Back then, Defunqto claims, for example, just 25% of car insurance policies had a windscreen replacement excess of £75. Today that proportion has risen to almost 50%. Pretty shocking stuff, Bankstone News thinks you will agree.

Some commentators have suggested that comparison websites have played a role in bringing about these excessive increases by encouraging buyers to focus exclusively on finding the lowest premium price rather than linger over small print. But that could not possibly be true.

As the ABI’s Nick Sparrow has recently pointed out, higher excesses are one way of keeping premiums down. An excellent way, in fact, provided you do not intend making any claims.



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