Car insurance is a necessity for drivers, but high excess fees can turn a minor accident into a major financial burden. Churchill Car Insurance, like many providers, charges an excess fee—a fixed amount you pay toward a claim before the insurer covers the rest. With rising living costs and economic uncertainty, finding ways to reduce these fees is more important than ever. Here’s how you can lower your excess payments while staying protected.
Before diving into strategies to reduce excess fees, it’s crucial to understand what they are and how they work.
An excess fee is the portion of a claim you agree to pay when taking out an insurance policy. For example, if your excess is £250 and your repair costs £1,000, you pay £250, and Churchill covers the remaining £750.
Higher voluntary excess can reduce your monthly premium, but it also means paying more out of pocket in a claim.
Several global trends are pushing insurance costs—and excess fees—higher:
Supply chain disruptions and inflation have driven up the cost of car parts and labor. Insurers adjust excess fees to offset these expenses.
Post-pandemic traffic surges and distracted driving (thanks to smartphones) have led to more claims, prompting insurers to raise excess fees to discourage small claims.
Floods, hailstorms, and wildfires are causing more car damage. Insurers are responding by adjusting excess fees in high-risk areas.
Now, let’s explore actionable ways to lower your excess payments without sacrificing coverage.
If you’re a safe driver with a strong emergency fund, consider increasing your voluntary excess. This can significantly lower your premium, but be sure you can afford the higher out-of-pocket cost if you need to claim.
Churchill rewards claim-free driving with a No-Claims Bonus (NCB). The longer you go without a claim, the bigger your discount—sometimes up to 75% off your premium. Protecting your NCB can indirectly reduce excess fees by keeping overall costs low.
Young or inexperienced drivers often face higher excess fees. Adding an older, more experienced driver (like a parent or spouse) to your policy can lower your risk profile and reduce excess costs.
Cars with high theft rates or expensive parts come with higher excess fees. Before buying a car, check insurance groups—lower-group vehicles typically have lower excess costs.
Monthly payments often include interest, increasing your total premium. Paying upfront can save money, allowing you to opt for a lower excess without raising your overall cost.
Churchill offers multi-policy discounts (e.g., home and auto insurance). Bundling can reduce your premium, making it easier to afford a lower excess.
If you’re a low-mileage or safe driver, a telematics policy can prove your driving habits and qualify you for lower excess fees.
If you’ve been a loyal customer with a clean record, call Churchill and ask if they can reduce your excess. Insurers sometimes offer adjustments to retain customers.
While lowering excess fees is ideal, there are scenarios where a higher excess makes sense:
A £1,000 excess might cut your premium, but if an accident happens, can you pay that much without financial strain?
Some policies have different excess fees for glass damage, theft, or young drivers. Read the fine print to avoid surprises.
Opting for minimal coverage to save on excess could leave you underinsured in a major accident.
Excess fees are a balancing act—too high, and they hurt when you claim; too low, and your premium skyrockets. By understanding Churchill’s policies and adjusting your approach, you can find a sweet spot that keeps you protected without breaking the bank. Whether it’s leveraging a no-claims bonus, adjusting your voluntary excess, or bundling policies, small changes can lead to big savings. Stay informed, drive safely, and always review your policy to ensure it matches your needs.
Copyright Statement:
Author: Auto Direct Insurance
Source: Auto Direct Insurance
The copyright of this article belongs to the author. Reproduction is not allowed without permission.
