Third party insurance may be costing you more

June 21, 2013 | By | In News

Drivers looking to save money on car insurance by opting for third party only cover may actually be spending more than if they had gone fully comprehensive, according to a research by MoneySupermarket.

Traditionally third party insurance, which solely pays out to others involved in an accident that was your fault, was cheaper due to the reduced cover and risk to insurers.

However, thanks to its appeal to higher-risk young drivers, insurers have become wary of motorists seeking third party cover and have raised premiums.

The upside is that for newly qualified drivers, the improved protection of fully comprehensive insurance is often more financially attractive.

The study showed that an 18-year-old looking to insure a common car such as Ford Fiesta could save around £1,500 a year by purchasing the greater level of cover.

Even drivers aged 25 and over could save money, with the disparity between the cost of different levels of insurance only evening out when a driver hits the age of 40.

After that the price quoted for different policies remains exactly the same.

Peter Harrison, car insurance expert at MoneySupermarket, said: "Comprehensive cover is often the cheapest for most age groups, as well as offering the highest level of protection.

“Young drivers should pay particular attention to the policy terms and conditions and take into consideration how they would fund the cost of repairs should they be involved in an incident their policy doesn’t cover.

"You should also check the excess levels on your policy as some insurers may uplift this amount based on the age of the driver – a high excess could add hundreds to the cost of a claim."

MoneySupermarket also advised younger drivers to consider insurance policies based around ‘black box’ telematics devices, which could work out around £200 cheaper a year, provided your driving was suitably responsible.

Picture: Fotolia

Social media & sharing icons powered by UltimatelySocial