False Economy: Third Party Only Insurance Costs Young Drivers 11% More Than Fully-Comp

Third party insurance, often a go-to for young and risky drivers, is now 73% more expensive than fully comprehensive car insurance for an average driver.

However, although the average premium for third party cover is pushed up by the fact that riskier drivers tend to opt for this type of policy, new research by Quotezone.co.uk has revealed that even young drivers aged 21 or younger could save an average of 11% by opting for a fully comprehensive policy.

Drivers with motoring convictions, meanwhile, do pay slightly more on average for a fully-comprehensive insurance policy compared to their average premium for third party only cover – but in most cases they only save a few pounds by opting for the less comprehensive coverage, suggesting many drivers with convictions are potentially risking thousands to save pennies.

Despite repair cost inflation, estimated at 11%, the data shows that 8% of drivers in the UK are still choosing third-party cover, year on year 2021/2022, which does not in include repairs for damage to their vehicle.

The data also reveals the regions with highest proportion of drivers opting for third-party insurance. London (10%) and South-East England (8%) top the list for third-party only and third-party fire and theft, even though it only covers damage to third-party vehicles.

According to a motoring crime report, almost 900,000 individuals were caught driving without insurance in 2019, which is the equivalent of 1.59 offences for every 1,000 people. 74.2% of these uninsured drivers were under 40 years old.  Driving without insurance can lead to a driving ban and unlimited fine.

Quotezone.co.uk has provided a number of other ways to help keep insurance costs down, even for young drivers:

  • Improve security: most cars now have anti-theft devices such as alarms, immobilisers but drivers can fit a tracker, dash cam and locking wheel nuts fairly inexpensively, lowering the risk of theft and reducing premium prices.
  • Downsize your vehicle: insuring a smaller vehicle usually costs less than insuring a larger car with a more powerful engine, and some insurers will also offer a discount if buying a hybrid or electric car.
  • Limit your mileage: lower mileage often lowers the risk of an accident – resulting in cheaper insurance.
  • Stop the mods:  modifications, and even stickers / branding can increase insurance premiums by increasing the value of the vehicle or alerting potential thefts to certain desirable contents such as tools or expensive equipment inside.
  • Choose the best time to switch: approximately three weeks before an insurance policy is about to renew is the ideal time to shop around for renewal quotes – they are usually cheapest at this point.
  • And drive safely: accidents and penalty points can cause insurance premiums to rise.  Opting for black box insurance is a good way for young drivers to be rewarded for safe and responsible driving and gives the insurance provider data on which to base their quote – something young drivers often get penalised for.

Greg Wilson, Founder of car insurance comparison website, Quotezone.co.uk, comments: “With the cost of living on the rise, drivers need to be on the lookout for savings wherever they can. As counterintuitive as it seems, third-party car insurance is often a more expensive option for many drivers, and it also leaves people at risk of further financial damage, so we’d always recommend fully comprehensive, if possible, especially when it’s actually a cheaper policy for many drivers and the cost of parts and repairs are surging.

“Young drivers are seen as more of a risk in the eyes of the insurer as they haven’t had time yet to gather data that would say otherwise, but that doesn’t mean young drivers can’t shop around and find a more affordable premium.”

Quotezone.co.uk helps around 3 million users every year, with over 400 insurance brands across 60 different products including comprehensive car insurance, convicted driver insurance and young driver insurance – recommended by 97% of reviewers.