Third party car insurance twice the price of fully comp

Motorists opting for third-party only car insurance in a bid to save cash may find it's not always the route to cheaper premiums, according to moneysupermarket.com.

The comparison site analysed the average cost of annual car insurance policies for nearly 1.4 million motorists. The research reveals, despite offering the lowest level of cover, third-party only is the most expensive option for motorists, followed by third party, fire and theft. Fully comprehensive policies offer the highest level of cover, yet the lowest cost premiums.

The research found third-party only cover costs £1,927 a year on average, which is 109 per cent more expensive than fully comprehensive insurance at an average of £922 a year. The average premium for third-party fire and theft stands at £1,348, almost 50 per cent more than the cost of fully comprehensive. Motorists over the age of 40 can expect to see a huge 161 per cent price difference between third-party cover and fully comp, with premiums costing £1,600 versus £613 on average respectively.

Steve Sweeney, head of car insurance at moneysupermarket.com, said: "Traditionally motorists assumed a third-party only policy would be cheaper because of the reduced levels of cover. But in recent years drivers with a more ‘risky' profile, such as younger motorists or those with driving convictions, have opted for this type of cover to keep the cost of motoring down. Providers have reacted to this perceived increase in risk by driving up the cost of third-party only insurance. It really does pay to shop around and do the research to find the right car insurance policy for you at the best price."