Increasing excess 'could be false economy'

Hard-up motorists who are thinking about increasing the excess on their classic car insurance in the hope they will see the premiums come down may be storing up trouble for themselves, it has been suggested.

The British Insurance Brokers' Association (Biba) said drivers who do this may well save money in the first instance, but they could be facing a "hefty bill" further down the line.

It issued this warning in the light of research that revealed 16 per cent of brokers have reported a rise in the number of people looking to bump up their excess since the beginning of the recession.

The organisation acknowledged it is a tempting option when it could allow drivers to save £80.

However, it added doing so could be a false economy.

Technical and corporate affairs executive Graeme Trudgill explained: "In the long run people do have claims, that's why insurers exist and some people are going to find a hefty bill if they are going for a big excess."

Motorists may find searching for cheap vintage vehicle cover online may be a safer way to reduce classic car insurance costs.

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