Money mensch: Third-party car insurance is not always cheapest

By Martin Lewis, September 9, 2009

September is car insurance renewal month as, historically, it has been the date of new car registrations.

But one of the important things to note is that while third-party cover would seem to be cheaper — as it only covers somebody else’s costs if you have an accident — recent studies show that many people find comprehensive insurance undercuts the cost of third-party insurance, even though this type of policy covers you too.

The reason is simple: risk charts show that the people who generally get third-party cover tend to be more likely to have accidents, so this tendency has pumped the cost up. However, this does not mean that one type of cover or the other wins every time.

It means that if you are looking for third-party, because you think it will save you money, always check out the price of comprehensive insurance too, as it might actually be cheaper.

For full details on finding the cheapest quotes and to see if you can beat the record result that I have had using my system of “£14 per year fully comprehensive”, go to

Follow Martin on Twitter: @moneysavingexp

Last updated: 4:44pm, September 9 2009