Drivers mistakenly opt for more expensive car insurance

Many drivers who believe that they are opting for a cheaper car insurance policy may actually be paying more for less coverage, claims an insurance website.

Using data from insurancewide.com, the website has claimed that drivers over the age of 35 who take out third person, fire and theft (TPFT) policies could be paying more than if they took out more complete coverage offered by a fully comprehensive policy.

Drivers over 35 who have a car worth less than £2,500 on average pay around £500 to £700 pounds on TPFT car insurance premiums annually but could find fully comprehensive insurance cover for the same car in the lower price range of £400 to £500, says the website.

Both young drivers, who are more likely to claim, and motorists with high performance cars but low cash flow tend to take out TPFT, thereby raising the cost of premiums for this type of deal.

Another element to consider is that drivers with convictions will be paying very high TPFT premiums but could get better coverage and value for money with a fully comprehensive policy.

Drivers have shown themselves keen to avoid paying higher premiums. Last week it was revealed that many actually take on the cost of car repairs themselves rather than lose their no claims bonus.

Half a million drivers have also transferred their speeding points to someone else, in order to keep their premiums low.