Price comparison site GoCompare will provide financial assistance to customers who claim on their car insurance.
The new free excess protection policy will pay-out up to £250 for qualifying car insurance claims.
It only applies to comprehensive policies, but is open to anyone who buys valid car insurance from GoCompare during the offer period.
GoCompare decided to offer the policy after commissioning a survey of 2,000 British adults that revealed only 35% check their excess level when arranging insurance for their car. The price comparison site has also produced a guide on the subject for customers.
When asked how they would meet any excess in the event of a claim, only 30% of drivers would be able to afford to pay it out of their income. A third would have to raid their savings, while 22% would use a credit card.
Lee Griffin (pictured), chief executive officer and founder of GoCompare, said: “Policy excesses are a grey area for many people and, as a result, they can provide a nasty shock during a claim—a time when there is already enough stress. Our research has revealed that excesses could contribute to genuine financial hardship, with 37% of drivers admitting that they don’t have the means to pay their excess or would have to turn to credit cards or loans.”
“Whether you’re arranging insurance for the first time or renewing cover, it’s important to consider the total cost of the policy. This means looking at the amount you pay upfront by way of the policy premium, and the cost of the excess payable if you’re unfortunate enough to need to make a claim.”
“Using a comparison site like GoCompare allows you to clearly see the excesses you will pay, and you can edit the quote to see how different voluntary excess levels could impact the premium. If you are considering opting for a higher voluntary excess to save money on your premium, make sure you’re comfortable with paying more should you need to claim, and know that you will make it more difficult for yourself to claim in the first place, as the value of your claim will need to be more than your total excess.”