- 04
- Jun
Choosing third-party car insurance ahead of comprehensive cover could see many consumers spend cash from their motor loan ineffectively, new figures reveal.
According to Insurancewide.com, those over the age of 35 who own a car which is valued at less than £2,500 pay an average of between £500 and £700 for third-party cover compared to £400 - £500 for fully comprehensive car insurance.
Chief executive James Harrison said: "The type of cover you choose can have a significant impact on the cost of your motor insurance and of your overall driving costs."
"Doing your homework could save you hundreds of pounds," he added
Mr Harrison suggested that as a third-party policy could cost "an arm and a leg anyway" motorists could be advised to use money from their car loan to take out complete insurance which will allow them to benefit from "extra cover".
Last month, uSwitch.com suggested that young drivers could develop "an unmanageable financial burden" if found guilty of drink driving which consequently may impinge upon their ability to pay off motor Loans.
Interfinancial providing you with breaking car loan news.
