Britons are paying too much for the wrong sort of car insurance.
Brits buying the wrong car insurance
Monday, 04 Jun 2007 08:54
Britons are paying too much for the wrong sort of car insurance.
That is according to online insurance comparison service Insurancewide.com, which shows many UK motorists are paying over the odds for third party car insurance and would be better off choosing a fully comprehensive policy.
"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, Insurancewide 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."
Figures from Insurancewide show over the last six months show drivers aged over 35 with cars worth less than £2,500 are paying on average between £500 and £700 for third party cover.
The same group pay just £400 to £500 on average for fully comprehensive cover.
This is because of the nature of many of the people taking out party, fire and theft cover.
"Historically, third party, fire and theft cover has been selected by drivers who have low value cars - hence why the premiums should be cheaper," explained Craig Staniland of Swiftcover.com.
"However, often it is the case that younger drivers with limited driving experience or those with high performance cars but budget constraints also select third party, fire and theft.
"Ultimately, this pushes up the average premium for third party, fire and theft because of the added risk to insure the vehicle or driver. We would always recommend comparing third party, fire and theft with comprehensive, both in terms of price and cover to ensure you get the best deal."
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