Third party car insurance may not be the cheapest option

Third party car insurance is often thought to be cheaper than comprehensive cover, however that may be changing according to recent findings.

Third party car insurance is often the only cover that young motorists can afford, however insurers are realising that they are taking on high risks with these new drivers and are increasing premiums.

Research by MoneySupermarket.com has found that although third party insurance provides the lowest level of cover, premiums are increasing so much that fully comprehensive policies can cost less and offer better protection.

Fully comprehensive insurance can also cost less than third party fire and theft policies.

The research found on average third-party only cover for a driver under the age of 21 is £1,434 and 50 per cent more expensive than opting for fully comprehensive insurance at £955.

Steve Sweeney, head of motor insurance at moneysupermarket.com, said: “This research shatters several myths. Traditionally motorists might assume a third-party only policy will be cheaper because of the reduced levels of cover.”

“in recent years, drivers with a more ‘risky’ profile, such as younger motorists, have opted for this 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 cover. It really does pay to shop around and do the research to find the best car insurance policy at the best price.”

The Association of British Insurers, for example, says you can save 35% by comparing as few as five insurance providers.

Buying your insurance online is also a great way of finding the best insurance cover.  You can compare car insurance from online comparison sites such as GoCompare.com and MoneySuperMarket.com