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Crafty car insurance tip

The best plans are the simplest, and here’s a tip to lower the cost of your car insurance – take out a policy to cover the cost of the excess.

And what is this ‘excess’? Well friends, the excess is the first part of any claim that you need to pay yourself. But the more you agree to pay on having an accident, the lower your insurance premium’s gonna be.

It’s all a bit of a balancing act. Let’s say that an insurer charges £39.90 a year for covering a £500 excess. This may not be cost effective. An older driver may have to pay only £35 more to his or her existing premium to have no excess charges at all. So it would be best just to pay the higher premium.

But, with younger drivers the wheeze comes into its own. If younger drivers elect to take on the policy at £39.90 a year to cover a £500 excess the cost of their premium could fall by £260 – a significant saving.

If you’re young and cautious (and such people do apparently exist) then it’s definitely worth a look.

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