You could end up paying much more for your car insurance if you opt for the cheapest cover, reveals car insurance experts.
If you were to have a car accident the cost of your excess could see you end up paying more money than you need to.
When purchasing a car insurance premium the motorist has the choice to choose and alter the cost of their excess, which is the amount of money they need to pay out if there is an accident.
Typically if you opt for a higher excess then you can see a reduction in your overall insurance cost.
This is an attractive way to see money as there is no guarantee that you’ll ever have an accident and if you’re a safe driver then you could be making a very simple saving.
However, if you were to have a crash you could end up having to fork out a lot more than you’d need to if you have paid for a cheaper excess in the first place.
For example, the cost of the repair could be just a few hundred pounds but your excess could be £1,000.
There is also voluntary excess on top of compulsory excess. The voluntary excess will drive your premium down but it could mean that you may have to pay the voluntary amount and the compulsory amount together which could leave you massively out of pocket.
Matt Oliver, car insurance expert at GoCompare, explained to Express.co.uk why paying more to get a lower excess could save you cash if you claim: “The total excess you pay is a combination of compulsory excess, which is what your insurer sets and voluntary excess, which is the amount you choose to pay towards the cost of a claim.
“When taking out car insurance, it’s always important to weigh up your affordability if you were to make a claim, particularly when it comes to excesses.
“While paying a higher voluntary excess may reduce your premiums, you’ll have to make sure you’re budgeting for this to make sure you can afford to pay the voluntary and compulsory excess when needing to claim.
“Choosing a lower excess may see your premium rise, but you will have this cost upfront and you could find it less of a hit to the wallet when it comes to claiming.”