According to a new research it has been proved that young people end up paying a heavy amount to cover their cars and are thus short of money. The third party insurance cover that they take proves to be very costly to them.
The young people are sometimes of the view that third party insurance over is cheaper but this is not the case. They should know that the third party cover may prove to be much expensive than a policy that only covers the third party damages. The premiums are higher for third party covers.
The research that has been carried out by Moneysupermarket.com has brought out the fact that the popularity of third party cover has increased in the past years. This is the prime reason for the increasing premiums for these policies. Drivers under the age of 21 years will have to pay an average of £1,434 for the third party cover they take while if they take comprehensive cover, the expenses will be around £955. This clearly shows that there is a difference of almost 50% in both the covers. The third party cover has more insurance premium as the young drivers are at more risk of getting involved in accidents.
In order to save money, the young people take this insurance while they have to pay double the amount. A number of myths have been proved to be false with this research. The motorist assumed that they will be able to save money with the help of third party only cover, but the opposite is true. If the young drivers drink and drive, they may have to pay even more premiums, according to the British Insurance Brokers Association. The young people will thus have to search the car insurance supermarket to find a comprehensive policy so that they can save costs.
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