Increasing the excess on a car insurance policy should lower the premium but new research from Which? Money suggests this is not always the case.

Having compared car insurance quotes from a range of providers, the consumer group discovered that raising the total excess on a quote from Aviva, from £350 to £550, actually increased the premium by 8%.

Which? Money was quoted £424 with a total excess of £350 but £458 with an excess of £550.

In the case of the AA, a similar rise had no effect on the premium, while for Budget, the Post Office and the RAC, raising the excess by £250 reduced premiums by a mere 1%, saving the consumer just £6.

Which? chief executive, Peter Vicary-Smith, says: “Common sense would suggest that if you increase your excess, you’d pay less for your policy, but we were surprised to find that some policies actually ended up costing more.”

He adds: “We regularly find that some of the big name insurers are found wanting when it comes to offering people good customer service but now it seems they’re also falling short on value for money.”

 

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