Too many motorists buying the wrong kind of insurance

Too many UK motorists are paying well over the odds for their third party car insurance and would be better off choosing a fully comprehensive policy, according to research by Insurancewide.com, the online insurance comparison service.

The figures, based on users of Insurancewide.com’s online UK car insurance comparison tool over the last 6 months, show that drivers aged over 35 with cars worth less than £2,500 are paying on average between £500 and £700 for third party cover and only £400 - £500 on average for fully comprehensive cover.

“The type of cover you choose can have a significant impact on the cost of your motor insurance and of your overall driving costs,“ said James Harrison, chief executive. “Doing your homework could save you hundreds of pounds. Our research shows that people who perhaps don’t use their cars much or who lock them up safely are still opting for third party fire and theft cover when in fact they could pay less and be more protected with fully comprehensive policy.

“For motorists with several claims and convictions, it can prove just as worthwhile to buy a fully comprehensive policy and benefit from the extra cover it provides because their driving history and profile is such that a third party policy will cost them an arm and a leg anyway.

Harrison continues: “The cost of motor insurance premiums depends on a whole host of variables. A thorough online comparison system that takes your individual profile into account will cut out the hassle of searching and do the work for you. Your age, occupation, postcode, driving history and parking arrangement s all affect how much you will pay so do your research before you buy.”

Craig Staniland at internet-based insurer swiftcover.com said: “Historically, third party, fire and theft (TPFT) cover has been selected by drivers who have low value cars - hence why the premiums should be cheaper. However, often it is the case that younger drivers with limited driving experience or those with high performance cars but budget constraints also select TPFT. Ultimately, this pushes up the average premium for TPFT because of the added risk to insure the vehicle or driver. We would always recommend comparing TPFT with comprehensive, both in terms of price and cover to ensure you get the best deal”.