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Motorists "buying wrong kind" of insurance

Many UK motorists are wasting money by failing to compare insurance policies and take advantage of competitive prices, it has emerged.

Comparison website Insurancewide.com has revealed that thousands of drivers are paying for third party cover when a fully comprehensive policy could in fact be cheaper, although the majority of motorists do not realise that they could be more protected and pay less by switching policies.

According to the company's data, people aged over 35 driving cars worth less than £2,500 are paying between £500 and £700 for third party insurance, while members of the same group are charged between £400 and £500 for fully comprehensive cover.

"The type of cover you choose can have a significant impact on the cost of your motor insurance and your overall driving costs," said James Harrison, chief executive of Insurancewide.com.

"Doing your homework could save you hundreds of pounds," he added.

The average third party, fire and theft premium has been pushed up in recent times by an increasing number of younger drivers with little experience or high performance cars selecting these policies, the website reports.

Recent research from Experian revealed that younger drivers place more importance on "trust and reputation" when buying a car than their older counterparts.

See how much you could borrow with a motor loan from Lombard Direct .

05/06/2007 16:52:58

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