Cover for older cars not always better value compared with new

With September's new car registration well under way and 60' plate cars sitting on forecourts waiting for new owners, motorists tempted to get behind the wheel shouldn't be lulled into assuming a new model will always be more expensive to insure than an older one, according to moneysupermarket.com.

The comparison site analysed the cost of motor insurance premiums for five and ten year old models of Britain's favourite cars, compared to the cost of a new model. It found for a Ford Fiesta for example (the nation's second most loved car), a 35 year old male could pay 20 per cent less for annual motor insurance for a 2010 model compared to the 2000 model.

Steve Sweeney, head of car insurance at moneysupermarket.com, said: "With the latest 60' plates on offer, some Brits may be tempted to treat themselves to a new set of wheels. For many though, the cost of insurance will often be one of the deciding factors before splashing their cash on a new car.

"It's a common belief a new car will be more expensive to insure than an older model, but our research reveals there are some occasions where this is not the case, and also on the positive side where the premium for a new car does show as more expensive, the price differences are much smaller than many would expect.  For firm favourites like the Ford Fiesta it is interesting to see it's cheaper to insure a 2010 model than one five and even ten years older."

moneysupermarket.com also urges drivers who bought a 59 registration car from brand new last September, to review their insurance carefully, particularly those who received a year's free insurance at purchase. On average, motorists could stand to waste £233 a year by automatically renewing their car cover with their existing insurer.

Steve Sweeney continued: "Receiving 12 months' free cover is a great perk when buying a new car, and we can all do with a little extra help with our finances at the moment, but one year on it is important to stay savvy.

"You could find yourself paying a significantly inflated premium if you stick to the same provider as the policy is unlikely to be very competitive. Always scour the market for the best deal for your circumstances."