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FULLY COMP CHEAPER THAN THIRD-PARTY ONLY

Tue, 18 Aug 2009
Young motorists opting for third-party only motor insurance in a bid to save money
may find that this is no longer the way to cut the cost of their premiums, according
to moneysupermarket.com.

The price comparison site analysed the average cost of annual motor
insurance policies for male and female motorists across the age-scale. The research
reveals, despite offering the lowest level of cover, third-party only is the most
expensive option for motorists, especially younger drivers, followed by third party,
fire and theft. Fully comprehensive policies offer the most level of cover yet the
lowest premiums1.

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 (see table below for what is included in third-party only, third
party, fire and theft and fully comprehensive cover). The average premium for
third-party fire and theft costs £1,118 and 17 per cent over the cost of 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."

moneysupermarket.com offers the following tips to younger drivers to cut motorinsurance costs:

* Shop around - The Association of British Insurers says you can save 35 per cent by
comparing as few as five insurance providers.
* Buy online - Many car insurance providers offer discounts to customers that buy
online.
* Mileage limit - Consider a mileage limit or to only drive at certain hours of the
day.
* Car security - Make sure you have an alarm and immobiliser.
* Drive a car with a smaller engine - A newer, more reliable car that is less likely
to be used by 'boy racers' will have a cheaper premium. Aim to drive a car like this
for at least two years after passing your test - and forget about turbo-charged
cars, with big spoilers, fat tyres, alloy rims and other "sexy" extras.
* Parents - If at all possible, avoid being added to a parent's insurance policy. It
prevents you from building up your own no-claims bonus. And if you are the main
driver or registered keeper of the car, DO NOT insure it in your parents' name and
put yourself down as a named driver. This is known as "fronting" and in the event of
an accident it could mean the claim is not paid. Moreover, the younger driver can be
charged with driving without insurance.
* Pass Plus - This is a certificate where a young driver who has already passed his
or her driving test receives specific lessons in night, motorway and town traffic
driving; achieving Pass Plus can earn significant discounts (as much as 35%) on your
car insurance.


Fully comprehensive will cover all damage and injury to anybody involved in an
accident.

Third Party Fire and Theft will cover the costs of any damage or injury you cause to
anybody else, it also covers your vehicle against accidental fire or theft.

Third Party will cover the costs of any damage or injury you cause to anybody else.


Fully comprehensive vs. third party insurance

Full breakdown of tables showing spread of policies by age and gender


YY

Gender

Fully Comp

Third Party

Third Party

(Fire and Theft)

Average

17-21

Male

£ 1,188.57

£ 1,763.31

£ 1,214.85

£ 1,388.91



Female

£ 721.73

£ 1,104.74

£ 719.30

£ 848.59



17-21 Total

£ 955.15

£ 1,434.02

£ 967.07

£ 1,118.75

22-25

Male

£ 573.12

£ 1,058.41

£ 708.55

£ 780.03



Female

£ 401.52

£ 743.70

£ 485.81

£ 543.68



22-25 Total

£ 487.32

£ 901.06

£ 597.18

£ 661.85

26-29

Male

£ 415.83

£ 778.96

£ 510.75

£ 568.51



Female

£ 331.29

£ 653.52

£ 386.45

£ 457.09



26-29 Total

£ 373.56

£ 716.24

£ 448.60

£ 512.80

30-39

Male

£ 282.32

£ 626.58

£ 405.99

£ 438.30



Female

£ 276.24

£ 606.80

£ 394.18

£ 425.74



30-39 Total

£ 279.28

£ 616.69

£ 400.09

£ 432.02

40-49

Male

£ 348.96

£ 809.73

£ 550.98

£ 569.89



Female

£ 363.13

£ 1,070.86

£ 717.86

£ 717.28



40-49 Total

£ 356.05

£ 940.29

£ 634.42

£ 643.59

50-59

Male

£ 338.42

£ 840.41

£ 602.83

£ 593.89



Female

£ 306.93

£ 882.28

£ 607.41

£ 598.87



50-59 Total

£ 322.67

£ 861.34

£ 605.12

£ 596.38

60-65

Male

£ 229.44

£ 605.64

£ 493.06

£ 442.72



Female

£ 190.97

£ 491.27

£ 393.56

£ 358.60



60-65 Total

£ 210.21

£ 548.46

£ 443.31

£ 400.66

66+

Male

£ 235.39

£ 592.50

£ 401.80

£ 409.90



Female

£ 201.34

£ 532.26

£ 361.05

£ 364.88



66+ Total

£ 218.36

£ 562.38

£ 381.43

£ 387.39

Ave



£ 400.33

£ 822.56

£ 559.65

£ 594.18

Sourced by moneysupermarket.com 17.08.2009

Scenario: Research based on 1.5m motor insurance quotes between July 8th and August 17th 2009.

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