Insurance
Can you afford your insurance excess?
Insurer AXA has warned drivers against pushing up levels of excess in order to reduce premiums as growing numbers struggle to meet payments.
The excess is the amount a policyholder will have to pay in the event of a claim and it can be anything from £50 upwards.
Over the past couple of years AXA has seen a growing number of customers unable to authorise repairs to their damaged cars due to lack of cash to pay for the excess. In 2011, this number climbed by 61% leaving people with potentially unroadworthy cars or at the very least with damage that will deteriorate due to lack of repair.
Research from the company shows that 29% of motorists do not have enough readily available savings to cover their excess if required. Nearly half the population (48%) has readily available savings of less than £500 and a third (34%) has less than £200.
Sarah Vaughan from AXA said: “As 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. Around one in 10 will have an accident each year so there is a real likelihood that they will need to find the money at some point.
“We 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.”
Tag Box
There are 0 Comment(s)
Your right to a refund if travel is affected by train strikes
There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...
Could you save money with a social broadband tariff?
Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.
How to help others and donate to food banks this winter
This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...
What will happen if rates change
How your finances will be impacted by a rise in interest rates.
Regular Savings Calculator
Small regular contributions can build up nicely over time.
Online Savings Calculator
Work out how your online savings can build over time.
DIY investors: 10 common mistakes to avoid
For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.
Mortgage down-valuations: Tips to avoid pulling out of a house sale
Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?
Five tips for surviving a bear market mauling
The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...
Money Tips of the Week
© AE3 Media Ltd, Floor 7, Lincoln House, 296 - 300 High Holborn, London WC1V 7JH, Company.