Rising charges: Customers pay up to £3,000 to make a car insurance claim
Extra costs that come with making a car insurance claim have skyrocketed in recent years, according to research, with some drivers having to fork out up to £3,000 to claim money back after a fire or theft.
Since 2012, the average extra charge of making a claim for fire, theft and accidental damage – known as compulsory excesses – has risen by a quarter. These costs come on top of a basic car insurance premium.
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Average excesses for accidental damage claims have risen 26 per cent to £166 since 2012, while theft excesses have risen 25 per cent while the cost of fire-related claims has risen 24 per cent, according to Go Compare.
These all come in well above inflation, which was 17.1 per cent between 2012 and 2017, based on the Consumer Prices Index.
Go Compare boss Lee Griffin said: “Policy excesses are a hidden cost for drivers and they have gone up significantly in recent years. There’s also a massive difference in the cost of excesses between insurers.”
The range of compulsory excesses has also jumped in the last seven years, from between £50 and £475 in 2012, to between £50 and £3,000 this year.
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Nearly two-thirds of drivers surveyed said they would have to dip into savings or take out a loan to cover the cost of making a claim.
Last month, experts warned car insurance premiums look set to climb further, after a 3.5 per cent price hike last quarter.
Main image: Getty