Many drivers in the UK are taking on additional financial liability in exchange for just £1 of monthly savings on their car insurance, according to new research.
While the majority of drivers opt for car insurance policies with an optional excess of £250 or less, 39% choose an excess of up to £1,000.
But price comparison and switching website uSwitch.com has questioned whether taking on up to £750 of additional liability is really worth it.
uSwitch found that the average car insurance quote for drivers opting for a £1,000 voluntary excess is £318 a year -- just £12 cheaper than a policy with a £250 voluntary excess. What's more, the average cost of cover with a £1,000 voluntary excess is the same as for a £500 voluntary excess policy -- despite the additional liability.
Rod Jones, insurance expert at uSwitch.com, said: "Worryingly a large number of drivers are taking on huge financial liabilities in exchange for tiny annual savings on their motor insurance. While many think that opting for a policy with a higher level of excess will save them money, drivers should ask themselves if an additional risk of £750 is really worth an average saving of just £1 a month and would they be put off making a claim knowing they'd have to pay a significant sum for doing so?
"With more than one in ten of those with a motor insurance policy likely to make a claim each year, we urge those looking to renew or switch their insurance to think seriously about the level of risk they want to take financially before they commit to a new annual policy."
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