The majority of car insurance policies feature compulsory and voluntary excess figures, with the insurer taking the total of the two figures when a driver makes a claim.
For example, an insurance policy featuring a £200 compulsory excess and a £300 voluntary excess would mean that, if a driver makes a claim for £1,000, they would receive £500 from the company.
Since car insurance companies would need to pay out less in the event of a claim, policies are typically lower if they feature a higher voluntary excess.
However, whilst the tip can help drivers save significantly on cost of running their car, ALA Insurance warned that it could see motorists pay more in the long run.
Since a higher voluntary excess means the company would not be obliged to pay out as much, in the event of an accident, the driver would typically have to cover the rest of the cost themselves.
The organisation also warned that drivers who try to overcome this by making higher claims to their insurer to receive more money run the risk of being refused.
To help drivers get the best balance between lowering their insurance costs and not having to pay high figures if they get into an accident, ALA Insurance suggested that drivers should always choose a voluntary excess figure that they would be willing to pay when repairing a vehicle.
In addition, the company suggested drivers look at the general cost of different repairs to a vehicle, stating that they will not be able to make claims for work which will cost less than the overall excess figure.
Finally, ALA Insurance also reminded motorists who are looking for the best insurance prices to always read the terms and conditions of the policy to make sure it is right for them.
