One of the inescapable costs of motoring, of course, is the need for insurance – a basic legal minimum is required before you may drive on the public highway. When you are arranging that cover, however, you may want to give some thought to the savings you might achieve:
- as inevitable as the cost of the premiums you are going to be required to pay is the typical inclusion of a policy excess;
- whether you have selected a basic third party, third party, fire and theft, or comprehensive policy, it is likely to include a – potentially hefty – excess;
- this is the amount that you are left having to cover from your own pocket in the event of any claim;
- because the cost of insuring your motor car is already likely to be more than you may comfortably afford, you might also seek to reduce the cost of the premiums by taking on an additional voluntary excess – thus increasing the amount you need to pay in the event of any claim;
- if the worst happens and you are involved in an accident – even a relatively minor scrape – therefore, you might end up by having to foot a considerable part of any repair bill;
- separate car excess insurance offers a way of freeing yourself from any such expense and, thus, saving on the cost of making a claim;
- a simple and readily arranged supplementary policy may ensure that any excess applied to your underlying motor policy is immediately recoverable once any claim is accepted by your insurer;
- this means that there is an immediate potential saving, since you are free of the cost of meeting any excess that may be applied;
- but there is an additional route to making the most of excess cover that might result in your doubling your savings on insurance at a single stroke;
- when arranging your motor insurance, you are likely to be offered the option of increasing the amount of your excess in return for a reduction in premiums – if you are shouldering more of the risk, after all, you might expect to pay less for the cover that is offered;
- in the normal course of events, this might mean that you have to weigh up the attraction of reduced premiums against the downside of contributing more by way of the excess in the event of a claim;
- with the excess insured (up to set limits), however, you may enjoy the freedom to negotiate with your principal insurer the maximum excess – and the maximum reduction in premiums.
By insuring the excess itself, therefore, in some cases you may be able to achieve savings twice over – not just the recovery of anything you might otherwise have paid as an excess but the decided benefit of reduced premiums too.