A MAJOR price comparison firm is handing a £250 car insurance fee back to drivers and £11 million has already been claimed.
GoCompare is offering customers the free excess refund reward when they purchase car insurance.
You could nab £250 back using the excess refund reward scheme[/caption]
The price comparison site has revealed that its customers have been millions through its £250 Excess Refund Reward since the scheme began in July 2019.
The Excess Refund Reward allows any customer who purchases a car insurance policy through GoCompare to opt in and receive money back when the claim is settled.
For example, if your total excess is £300, you pay this to your insurer, and GoCompare refund £250 after your claim is settled.
The price comparison firm will refund you if you have damage to your car, if you’re at fault and have comprehensive insurance.
You can also get a refund for claims for fire or theft as well as uninsured driver claims.
However, GoCompare stress that you will not be able to use your free excess cover for windscreen repair and replacement, damage caused by a breakdown or misfuelling or claims from outside the UK.
Repairs to your own car, without comprehensive cover are also not included in the free excess cover.
GoCompare say that making a claim is a straightforward process and you should be able to fill out the online form in about ten minutes.
Once you’ve submitted your claim, and it’s been approved, expect to get your refund within five working days.
An excess is included on most insurance policies and is the amount that the policyholder needs to pay upfront before they can make a claim.
Regarding car insurance, the excess is split into two parts: compulsory and voluntary.
The insurer sets the compulsory excess while the policyholder can choose the voluntary excess – then when you make a claim the two are added together and must be paid before a claim can be made.
Previous research from Go.Compare revealed that only 49 per cent of motorists fully understand the meaning of voluntary and compulsory excesses on their policy.
Meanwhile, only 7 per cent of drivers aged 18 to 24 said they understood compulsory excess.
Tom Banks, car insurance expert at Go.Compare, said: “Seeing that over £11 million has been refunded to our customers through this offer is amazing.
“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.
“It’s great to see that so many customers have been able to benefit from the scheme.”
It comes after Martin Lewis urged car drivers to beware of a simple car insurance payment mistake that can end up being more expensive.
The money saving expert shared the a new video to help motorists save cash while covering the essential bill.
What is car insurance?
Consumer reporter Sam Walker talks you through what car insurance is and what it covers you for…
Car insurance pays out if your vehicle is stolen, damaged, catches on fire or is involved in an accident.
As a minimum, it protects you against any damage you case to other road users, the public or their property – these are called third parties.
You only need to claim on your car insurance when an accident is your fault.
If another motorist is to blame, their insurance should pay out instead.
Car insurance, unlike home insurance, is a legal requirement and if you don’t have it you can be fined up to £1,000.
You can also have your vehicle seized and destroyed.
However, you don’t need to insure your car if it is classed as “off-road”, or holds a statutory off road notification (SORN).
The vehicle has to be kept on private land and not a public highway though.
