Fully comprehensive car insurance policies are now cheaper than third-party alternatives, despite offering much better cover, new research shows.
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Third-party only policies are now the most expensive option for motorists, said moneysupermarket.com, which looked at 1.5m insurance quotes between July and August this year.
Third party, fire and theft policies are the second most expensive choice, while fully comp policies – which have traditionally cost more – are now consistently cheapest.
Fully comp ‘is cheapest’
According to the price comparison site, young drivers are particularly affected by the changes. It claims under 21s are now expected to pay an average of £1,434 a year for third-party only insurance – 50% more than if they opted for fully comprehensive cover.
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, but 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.’
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