Why Would Your Insurance Company Increase Your Excess or Premiums?

You’re locked and loaded – you’ve just spent half an hour on the phone with a friendly consultant and you’re good to go with your new insurance package on your pride and joy of a car.

Fast forward two years down the line, and an unexpected e-mail pops up in your inbox – telling you about a gasp notice of rate change!  You optimistically open it, thinking “maybe it’s  lower premium”… Your dreams are dashed! Your monthly premium has gone up!


Here are a few reasons why your insurer has decided you should be paying more for your monthly cover:

  • You have had multiple claims since instituting your policy.
  • You have been found to have violated terms and conditions; if they were “misdemeanor” offences, you’re very luck you not have had your insurance revoked or restrictions put in place.
  • Insurers are well within their rights to increase your premiums for contravention of the policy.
  • Annual increase; this across-the board increase affects all users, so if this is the cause, perhaps call your insurer to re-negotiate.
  • Your residential area or workplace has changed, and you are now located in a higher risk area.
  • You’ve changed vehicles; this may seem like a no-brainer, but more modern cars and higher risk cars and generally going to carry a higher monthly premium.
  • Your daily mileage is actually higher than you initially stated in your quote – the more you drive, you more risk you are. Also, if you use your vehicle for commuting, you’re generally a higher risk as you’re driving in heavy traffic more often.


Now, when it comes to increasing your excess – it’s really important to note the following: an insurance company may at no time increase your excess without consulting you first. It is a set amount that you are expected to pay in the incidence of any accidents or claims.


The only way your insurance excess will be higher, is if you opt for it to be so when getting your initial quote. See, your monthly premium as well as your excess are intertwined. The higher you opt for your monthly premium to be, the lower your excess – and vice versa.


Would you like to get in touch with an insurance broker who will give you the best advice, and secure premiums you are happy to pay? Click here to get in touch today.

All information provided in this article is not a reflection of the opinions of the supplier. All information is true at the time of publication and may be amended at the suppliers demand. Liability for incorrect information is excluded.