TP insurance holders pay more
Motorists are being warned not to assume that third-party insurance will be the cheapest option after research found they were being quoted up to £4,000 a year more for policies that offer less cover than fully comprehensive plans, according to The Guardian.
Around nine in 10 drivers choose comprehensive motor insurance because it offers the best level of protection against injury or financial loss for the policyholder, their passengers and for third parties. The rest buy lower-level, third-party cover. But while those policies offer less protection and will not pay out if, for example, the policyholder’s vehicle is damaged, drivers are frequently charged more for them.
Third-party quotes obtained using comparison websites Uswitch.com, Comparethemarket.com and Confused.com, and from the UK’s biggest insurer Aviva, were all more expensive than fully comprehensive insurance.
In the case of a 20-year-old mechanic living in south-east London and driving a 1.6 litre Ford Focus, the gulf between the cheapest policies available was vast. While the best third-party quote on Comparethemarket.com was £5,762 a year from GO Girl, if the same driver opted for comprehensive cover they would pay just £1,531 with a More Than Smart Wheels telematics policy, where a black box is fitted to the car.
Martin Lewis, the founder of MoneySavingExpert said, ‘There are probably hundreds of millions of pounds being wasted by people thinking third-party insurance is cheaper. The golden rule is if you’re only looking for the cheapest policy full stop, don’t just look at third party, get comprehensive quotes as well.’