What is Excess Protection Insurance and is it worth it?
We all know the feeling; you've provided all the information required in order to get your car insurance quote - and nearly fall off your chair in shock when the eye-wateringly high amount is revealed.
A common way of reducing this cost is to opt for a higher excess and hope the gamble on not having to make a claim pays off. But what if it doesn't and you're left facing a large payout to cover your excess?
This is where excess protection insurance enables you to have your cake and eat it, as long as you can find a policy that makes it a cost effective purchase. In other words, what you pay out to buy the policy has to be less than the difference in the premium between two excess levels on your car insurance quote.
Best Price Financial Services could have the solution. The online broker, which has established its reputation for selling high quality, value-for-money financial products, has added excess protection insurance to its product portfolio.
How it works: say your insurance quote with a £250 voluntary excess is £400 but by opting for an excess of £500 this is reduced to £350, then you have potentially saved yourself £50. However, if you do have an accident you are now liable for a £500 payout and will be kicking yourself if the worst happens. With a Best Price FS' motor excess insurance policy, you can still choose to go with the higher excess and save yourself the £50 but now you insure the £500 excess for a one-off annual premium of £29.75. This means you are still £20.25 better off but you're now also protected against a potential £500 excess payout. Do you see? By deciding to opt for the higher excess, you have saved £50; you've then paid out £29.75 to insure the higher excess, making an overall saving of £20.25, and still with no worries of being out of pocket if you have an accident. And like any insurance policy, you're covered for each and every incident you're involved in during the lifetime of the policy.
Starting at just £19.75 a year to cover a £250 excess it makes the purchase of an excess protection insurance policy totally affordable and is a bit of a no brainer. As well as £29.75 for a £500 excess you can also opt for a £39.95 annual premium for a £1,000 excess. In fact, our premiums give you a saving of up to 40% on some other provider's policies.
It's not just accidents the policy will pay out for. It will also reimburse the excess paid on any claim for malicious damage, accidental damage, fire, theft or attempted theft. But it offers more than just excess protection to customers. With the peace-of mind this policy provides, consumers can confidently increase the excess on their insurance policy to reduce the cost of their premium, giving them the option of either pocketing the saving or using it to invest in a more feature-rich policy that would previously have been too expensive.
Best Price FS' operations director, Mal Evans, commented: “Insurance premiums have been going up consistently for a number of years now as a result of the growth in ”˜no win no fee' accident claims fuelled by the aggressive promotional activity of the claims management industry, the rise in the number of fraudulent ”˜crash for cash' claims orchestrated by organised criminal gangs and the seemingly inexorable rise in insurance premium tax (IPT) which, the Chancellor announced in his autumn statement last week, will be going up again next June to 12 per cent. Consumers will be looking to make savings and our excess protection policy will enable many to do just that.”
The cover for Best Price FS' policy is provided by Motorplus Limited, a company which has been providing bespoke claims management services and a wide variety of core and add-on insurance products for more than 25 years.
About the Author
Best Price FS is a discounted insurance broker offering Motor Excess Protection, Motor Legal Protection, Vehicle Breakdown Cover, and Home Emergency and Boiler Breakdown Cover. We also provide a wide range of Tax-Free Savings Plans and Structured Investments products. For more info visit: https://www.bestpricefs.co.uk/car-excess-insurance
Submitted on: 2017-05-08 02:44:17