Voluntary increase in excess to lower premiums
Excesses on car and home insurance policies are voluntarily being increased to lower premiums according to research by Sainsbury’s Bank.
Over the last three years, 7.4 million Britons have chosen to increase their excesses. The research found that 15% of adults have chosen to increase their excess by an average of £327m over past three years.
The research also found that 13% of car and home insurance policy holders who voluntarily increased the excess on their policies suffered an accident or damage to their car or home that they could claim for under the terms of their policy.
About 35% said it wasn’t worth making the claim as they had raised the excess too much.
Around 38% of those involved in an incident made a claim and paid the excess out of their savings.
The research stated that 16% used a credit card and 16% borrowed money from a friend or relative to pay the excess.
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