That sounds high for a compulsory excess Fred. What model Golf do you have?
Insurers usually apply high compulsory excesses;
- to young drivers (under 25)
- to certain high performance models of car
- to vehicles of very high value
- to specific risks at an individual level on underwriting grounds; e.g. Where a policyholder has had multiple claims, to highly modified / non-standard vehicles
Some insurers may adopt a strategy of increasing their compulsory excess levels to help control overall claims costs, and to make themselves more competitive in terms of their premiums compared to competitor premiums. The natural tendency when comparing motor insurance quotes is to focus on the premium, rather than the other terms such as excess or policy cover, so an insurer with such a strategy may help them to win additional business. Do you know if the premium from insurer who's quoted the £400 compulsory excess is significantly less than other insurers premiums with a lower excess?
Might be worth contacting them and asking them why the compulsory excess is so high.
