When it comes to purchasing insurance policies, one of the key decisions that individuals must make is choosing the appropriate amount of deductible or policy excess. The deductible is the amount of money an individual pays out of pocket before their insurance policy begins to cover expenses. A higher deductible generally translates to a lower premium cost. However, one option that many people may not be aware of is increasing their policy excess or deductible in response to weather patterns. In this article, we will explore whether increasing your policy excess can reduce premium costs during periods of extreme weather.

Weather is one of the most unpredictable natural phenomena. Hurricanes, floods, hailstorms and tornadoes can cause significant damage to homes and properties, resulting in expensive repairs and insurance claims. As a result, insurance companies may increase their premiums during periods of heightened weather risk. These premium increases can significantly impact a homeowner’s budget and financial stability.

One solution that may help reduce the cost of insurance premiums during periods of extreme weather is to increase your policy excess. When an individual increases their policy excess, they are essentially agreeing to pay a higher amount out of pocket before their insurance policy begins to cover expenses. For example, if an individual’s policy excess is £500, they will need to pay the first £500 of any claim they file before their insurance policy begins to cover expenses. If they increase their policy excess to £1,000, they will need to pay the first £1,000 of any claim they file before their insurance policy begins to cover expenses.

By increasing their policy excess, individuals may be able to reduce their insurance premiums during periods of extreme weather. Insurance companies may view individuals who agree to pay a higher amount out of pocket as less risky, which could result in lower premiums. Additionally, individuals who choose to increase their policy excess are likely to file fewer claims, which could also help reduce their insurance premiums over time.

However, it is essential to note that increasing your policy excess is not always the best option for everyone. Individuals must consider their financial situation and ability to pay a higher amount out of pocket if they need to file a claim. If an individual cannot afford to pay their policy excess, they may be unable to file a claim and receive the benefits of their insurance policy. Additionally, increasing your policy excess may not always result in significant savings. Insurance companies may have different policies and may not offer discounts for increased policy excess during periods of extreme weather.

In conclusion, increasing your policy excess during periods of extreme weather may help reduce your insurance premiums. However, it is crucial to carefully consider your financial situation and ability to pay a higher amount out of pocket before making this decision. Additionally, it is always recommended that individuals speak with their insurance provider to fully understand the potential benefits and risks of increasing their policy excess.

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Matthew.collins@ascendbroking.co.uk  |  Office: 01245 449 060