Motorists are being urged to think carefully before increasing the excess levels on their car insurance in order to reduce premiums.
If you are a driver, remember to shop around for the best deal on car insurance before renewing your existing policy. You can compare car insurance with Money Expert.
As many as one in three motorists are unable to afford their car insurance excess, leading to potentially unroadworthy vehicles.
That is the finding of research by insurance provider AXA, which has seen the number of drivers unable to pay for their excess go up dramatically in recent years.
ìAs an industry we need to make sure motorists understand the level of excess they are committing themselves to when they buy their insurance and then to ensure it is at a sensible level for them,î said Sarah Vaughan from AXA.
ìAround one in ten will have an accident each year so there is a real likelihood that they will need to find the money at some point.î
The number of drivers with an out-reach excess went up by 61% in 2011 alone, leaving people unable to authorise repairs to their cars.
The research found that 29% of motorists do not have enough readily-available savings to cover their excess. Nearly half the population has savings of less than £500, while 34% have less than £200.
ìWe appreciate that premiums have risen a lot in the last couple of years and we can understand consumers looking at ways of saving a bit of money. But if this means that they can’t afford their excess, it is a completely false economy,î added Ms Vaughan.
ìEven if the money can eventually be recovered from a third party, motorists should be careful to have the cash available in order to get their repairs done swiftly and get their cars back on the road.î
You can compare car insurance with Money Expert.