Motorists unable to pay insurance excess

| March 13, 2012 | 0 Comments
Motorists unable to pay insurance excess

Many motorists are increasing the voluntary excess on their motor insurance policies in order to keep the cost of the policy down, according to a study by Axa.

However, if they have an accident, this can mean they are unable to afford the excess payment and are therefore unable to have their vehicle repaired.

The study found that in the past two years, one in ten drivers have increased their excess to cut the cost of their motor insurance.

The number of drivers unable to cover the cost of their voluntary excess increased to 61 per cent last year.

According to Axa’s study 29 per cent of motorists have no savings at all to cover their excess costs if they have an accident, while 34 per cent have less than £200 in savings.

This could mean that damaged cars are still being driven with potentially dangerous or even more expensive consequences.

Axa also reported an increase in the number of customers wishing to postpone making an insurance claim until liability for an accident has been established.

Although they are legally allowed to put off making a claim for 30 day, the delay could cause the damage to deteriorate further, potentially increasing the cost of a claim.

Meanwhile the government is planning to clamp down on the 1.4 million motorists driving without any insurance at all.

The Daily Mirror has reported plans for hi-tech CCTV systems to be installed at petrol stations, to automatically prevent uninsured or untaxed cars being filled with fuel.

The cameras use automatic number plate recognition technology to cross-reference a car’s details with the DVLA’s database.

If a car is found to be untaxed or uninsured, the system will shut down the pump, preventing the driver from refuelling.

Tags: automatic number plate recognition, Axa Insurance, , ,

Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Leave a Reply

Visited 505 times, 14 so far today