A driver opting for a third party car insurance policy over a fully comprehensive one could be forgiven for expecting a healthy discount, but new research from MoneySupermarket shows that in fact quite the opposite is true.
The latest figures from the comparison website suggest that anyone under the age of 40 will find it cheaper to choose fully comprehensive cover rather than third party.
Third party insurance only covers other drivers, and your policy will only pay out to cover the third party if you are to blame in an accident. Fully comp on the other hand covers damage to other cars as well as your own.
Naturally, motorists have traditionally paid less for reduced cover but MoneySupermarket has warned just how far that situation has been reversed. It explained that because young drivers in particular asked for third party policies to save money, insurers became suspicious of the type of drivers asking for this cover and raised the costs.
A spokeswoman said: "Typically younger drivers will purchase a lower value car and in the past would have insured this under a third party policy as this used to be the cheapest option. Since insurers have become aware of this practice, they have made it so a fully comp policy is cheaper for a young driver as this not only protects the driver in the event of a claim, but also the insurer."
Incredibly the trend continues up until age 40, at which point fully comprehensive, third party only, and third party fire and theft policies are all the same price according to the study. It shows that on average a 20 year old could save £326 a year opting for fully comp while a 25 year old could make average annual savings of £49.
Peter Harrison, car insurance expert at MoneySupermarket, had this to say: "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."
