Car insurance providers raise third party cover
A new study of the car insurance industry has shown that young people may be out of pocket when it comes to covering their vehicle, as they pay much more than everyone else for third party policies.
New research by moneysupermarket.com has shown that the average cost of a third party policy from a wide range of car insurance providers has risen in recent times due to its popularity among young people.
Those under the age of 21 can expect to pay car insurance providers £1,434 for third party cover at the moment, while fully comprehensive protection, which offers more for drivers, has a typical cost of £955.
This is 50 per cent less than third party cover, which moneysupermarket.com believes has seen a price hike because young drivers, which are seen as risky by car insurance providers, have flocked towards such packages in an attempt to save money.
Steve Sweeney, head of motor insurance at the website, explained: "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," he added.
Young people are the most likely to see premium rises on their vehicle insurance due to drinking and driving, the British Insurance Brokers Association (BIBA) recently said.
Research by the Co-operative Insurance found that 55 per cent of young drivers have got behind the wheel while under the influence of alcohol or drugs, and BIBA have said that this is the reason that cover for the demographic costs more.
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