New research by Sainsbury's Bank has revealed that higher premium excesses put a large proportion of people off making a claim, even if they increased their excess voluntarily.
The study found that even though 15% of adults surveyed had voluntarily increased the excess on their car or home insurance over the last three years, 21% of those subsequently involved in an incident hadn't considered the implications of a higher excess when making a claim.
Thirty-eight percent had to use savings in order to cover the excess whilst 16% used a credit card, and the same percentage had to borrow money from friends or family members.
And, in 35% of cases, they'd raised their excess so much that they felt it wasn't worth making a claim at all.
Striking the right balance
The research highlights the importance of striking the right balance in terms of initial outlay and potential future costs.
Whilst opting for a voluntary excess might reduce monthly premiums, with the average excess increase being £327 it could be difficult to cover the cost of a future claim.
Ben Tyte, head of insurance at Sainsbury's Bank, said: "Insurance is there to assist you when you need it most. If you're thinking about selecting a higher excess to reduce your monthly premium, be sure that this won't cause you any financial difficulty when it comes to making a claim.
"We'd encourage homeowners and motorists to think carefully about the excess they select on their policies, as well as ensuring they choose good quality cover."
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