Daily Insurance Industry News
 
 
Daily Insurance Industry News
Thursday 22nd of February 2018
March 12, 2012

Motorists increasingly unable to afford excess

by Gill Montia

Story link: Motorists increasingly unable to afford excess

AXA is warning drivers against pushing up levels of excess in order to reduce premiums.

Over the last couple of years, the insurer has seen a growing number of customers unable to authorise repairs to damaged cars due to lack of cash to pay the excess.

Last year, numbers climbed sharply, leaving people with unroadworthy cars or damage that could deteriorate due to lack of repair.

Research from the company indicates that 29% of motorists do not have enough savings to cover their excess if required, although 62% of motorists are aware that at least part of their excess is “voluntary”.

A further 17% of motorists don’t know what type of excess they have.

In addition, AXA has recently seen an increasing number of customers waiting to establish liability (i.e. see whether they can claim the money for the excess back from a third party) before making a claim.

While this can be legal for up to 30 days under the terms of the policy, it can increase the value of the claim as damage can deteriorate quickly.

Sarah Vaughan from AXA says: “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.”

She adds: “Around 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.”

 

News posted:



Related stories to Motorists increasingly unable to afford excess: