Swinton

Swinton

May 02, 2010 19:00 ET

New Excess Cover From Swinton to Save Drivers Millions

MANCHESTER, UNITED KINGDOM--(Marketwire - May 2, 2010) - Swinton, the UK's leading high street insurance retailer, has launched a new excess protection product that is set to save British drivers millions of pounds each year. Figures show accident-prone drivers pay over £1.7bn in excess payments each year.

For a small annual fee, Excess Insurance will cover the cost of any excess payment up to as much as £1000 per year if the driver has a fault claim – with drivers still benefitting from the lower annual premium that having a larger excess brings. 

Swinton offers customers three levels of excess insurance cover (also see real case studies at the end of the release) that will provide significant savings to new and experienced drivers alike:

  • To protect annual excess payments up to £300 costs just £29 a year.
  • Up to £500 costs just £39 a year.
  • Up to £1000 costs just £59 a year.

With the average UK driver excess being around £250 and nearly seven million car insurance claims(2) made each year, accident-prone UK drivers are currently forking out a staggering £1.7bn(1) on annual excess payments. With Swinton's new Excess Protection, drivers could have saved £228 per claim made – over £1.5bn altogether.

Steve Chelton, Insurer Development manager at Swinton said: "With insurance premiums on the rise, many drivers are choosing a higher excess to keep policy costs down – however this obviously leads to more expense if you're at fault in an accident. For a small annual fee, our new Excess Insurance allows drivers to take advantage of the lower premiums that having an excess brings, but with the peace of mind that we will cover the cost of that excess if a claim is made. 

"With this product UK drivers can save millions of pounds in lower premiums and excess payments – great news for experienced drivers in the face of rising petrol prices and an unstable economy, and young drivers who would normally can't afford to commit to a high value excess." 

To demonstrate the savings on offer through Excess Insurance, Swinton has provided the following examples from its car insurance book:

  • 42 yr old man, 5 yr old car worth approx £10K.
    • £0 XS: £590.10
    • £400 XS: £495.97
    • £400 XS + £39 cover: £534.97
    • XS + cover annual saving: £55.13
  • 38 yr old woman, 6 yr old car worth approx £6K.
    • £0 XS: £527.65
    • £500 XS: £429.59
    • £500 XS + £39 cover: £468.59
    • XS + cover annual saving: £59.06
  • 19 yr old male, 10 yr old vehicle worth approx £2000.
    • £0 XS: £1419.60 annual premium
    • £300 XS: £1334.55
    • £300 XS + £29 cover: £1363.55
    • XS + cover annual saving: £56.05

Notes to Editors:

1. Average excess is £257 x 6.8m car insurance claims each year = £1,747,600,000

2. 41.2m drivers in the UK (according to DVLA, 2007). ABI estimated in 2008 there are more than one in six private motor claims each year. 41.2m divided by 6 = 6.8 million claims each year.

Average excess (combining compulsory and voluntary excesses) in UK is £257 based on average excess of 238,543 Swinton policyholders.

Compulsory excess based on average compulsory excess of 238,543 Swinton policyholders.

Voluntary excess based on average voluntary excess of 238,543 Swinton policyholders.

About Swinton:

  • With 580 branches nationwide Swinton is the largest high street insurance broker.

  • Unlike many other companies in the financial services industry, Swinton is committed to keeping its branches open for business, and part of the community.

  • Swinton provides a one-stop-shop for the insurance and related needs of its clients, offering home, car, caravan, business, holiday, motorbike and even classic car insurance with a dedicated team of advisors on hand at every branch to search a panel of insurers to offer quality cover at competitive rates.

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