Startling recent research has shown that fully comprehensive motor insurance is now often a cheaper option than third party insurance, despite the fact that it gives you greater protection. Many will be shocked to hear that despite offering a higher level of cover, fully comprehensive insurance is now typically cheaper than third party alternatives.
This recent research suggests that on average third party only cover for a driver under the age of 21 is £1,434. Compared to the average fully comprehensive policy for a driver under 21 which is £955, the difference is quite staggering. Quite perversely, this means that the better your insurance is, the less expensive it often becomes. It isn’t a just slight difference either, the above figures suggest that third party only policies are as much as 50% more expensive than the average fully comprehensive policy.
The reasoning behind these figures is that typically it is ‘risky’ drivers such as young and inexperienced drivers that take out third party only cover. These drivers have been drawn to third party only insurance believing that it would be the cheapest option. Insurance prices are about actuarial risk and are driven by past behaviour. It may be the case that insurers believe that those who tend to buy third party could be a higher risk group and care less about their cars which in turn will push up the risk averages and the price. It appears that insurance providers have reacted to this by driving up the cost of third party only cover as it is their belief that drivers looking for third party only insurance may be more of a risk than drivers interested in fully comprehensive insurance.
The solution to this recent research is to shop around for your car insurance to ensure that you are getting the best deal on your motor insurance policy. Anyone wanting to cut the cost of motor insurance should not automatically assume cutting corners will save you cash and these figures back up these thoughts. In many cases those considering third party only insurance should look into the costs of fully comprehensive insurance as it may work out cheaper and you will be better protected.
Before purchasing your motor insurance be sure to
compare car insurance policies from a range of insurers. By completing a
car insurance comparison, it is likely that you will find the
cheapest car insurance available to you.
