Drivers could receive £250 car insurance refund with popular scheme - how to apply
Drivers could receive a £250 refund when their claim is settled
GETTY
Drivers are being urged to receive up to £250 back on their car insurance claims through a popular scheme as motorists deal with expensive price hikes.
Since the launch of Go.Compare's Excess Refund Reward Scheme in July 2019, customers have been refunded more than £11million who opted into the programme.
The scheme allows policyholders to claim back up to £250 when their insurance claim is settled, effectively reducing the financial burden of making a claim.
This initiative comes at a time when car insurance prices have seen a significant increase, with the average cost rising by 34 per cent in 2024 compared to the previous year.
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Car insurance rates have soared in recent years
GETTYAn excess is a standard feature of most insurance policies, representing the amount policyholders must pay before making a claim and comprises of compulsory and voluntary.
The insurer sets the compulsory excess, while the policyholder chooses the voluntary excess, with these being combined when making a claim.
However, research by Go.Compare revealed a lack of understanding about excesses among motorists as only 49 per cent fully comprehend the meaning of voluntary and compulsory excesses.
This knowledge gap is particularly pronounced among younger drivers, with just 17 per cent of those aged between 18 and 24 understanding compulsory excess.
Tom Banks, car insurance expert at Go.Compare, said it was "amazing" that more drivers had been refunded more than £11million since the scheme was introduced.
He added: "The process of making a claim on an insurance policy can be a stressful one so we hope that this refund reward can help ease some of the stresses, both mentally and financially.
"Our aim is to help motorists make informed decisions when it comes to insurance, making sure they get the cover they need and help them save some money - the excess refund reward is a great example of this."
The £250 excess cover offer is available to Go.Compare car and home insurance customers, with this scheme expected to continue in the future.
The sharp rise in motor insurance prices has been primarily driven by increasing repair costs and exacerbated by a surge in vehicle thefts and the growing expense of replacing written-off vehicles.
Data from Go.Compare shows that third-party, fire and theft (TPFT) cover emerged as the cheapest option, averaging £449 annually.
Contrary to expectations, third party only (TPO) insurance is 33 per cent more expensive, at £599 per year, while comprehensive cover, which is traditionally thought to be pricier, averages £455 annually.
Insurers may adjust premiums immediately for certain changes, such as a new address or job, while policyholders are required to inform their insurers promptly about these alterations.
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The cost of repairs has caused the price of car insurance to rise
GETTYHowever, some changes only need to be reported at policy renewal. It's crucial for drivers to consult their insurance policy booklet to understand when they must notify their insurer about any changes.
Motorists are continually urged to shop around before they renew their car insurance to ensure they save on their policies, which could sometimes see them save hundreds of pounds.
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