Martin Lewis reveals how drivers can get the ‘cheapest’ car insurance policy while getting MORE perks
MARTIN Lewis has revealed how drivers can get the cheapest car insurance possible while enjoying handy added extras.
The personal finance guru claimed that many motorists could be missing out on better coverage for a lower price than their current deal.
Martin explained that some Brits could be overpaying based on a common misconception about which type of coverage is the most affordable.
Insurers in the UK generally offer three types of policy.
Third-party cover protects drivers when damage is caused to their motor by somebody else.
Most providers then also offer a higher-level third-party policy that also covers damage caused by fire or theft.
Then, the highest level of coverage is comprehensive, which protects you even if the damage is your fault.
The three tiers of coverage usually increase in price as the policy protects against more potential scenarios.
However, Martin suggested that this might not always be the case.
He told ITV’s Tonight Show: “If you want the cheapest, sometimes comprehensive policies can be cheaper than third-party policies.
“Comprehensive is seen as a lower risk by some insurers and that outweighs the fact you’re getting more for it.”
This, according to Money Saving Expert, comes down to the fact the insurance providers consider that the sort of driver who would opt for comprehensive coverage is likely to be more careful and responsible compared to someone taking out a third-party policy.
As a result, comprehensive policies can be awarded a lower risk profile and, therefore, be available for lower rates.
That means you could enjoy perks such as breakdown cover, roadside assistance and wider protection, all for the cheapest price.
The specialists at MSE added: “Because those riskier drivers are choosing third-party policies and, resultantly, are putting in claims, it’s driven the cost of third-party policies up.”
Eight tips to save big on car insurance
According to SheTalksCars
- Buy in advance – 23 to 26 days before you need cover is the sweet spotAdd a named driver – even a learner can knock money offTry different parking places – a garage isn’t always cheaperChoose the right job title – make sure they are always accurateShop around – comparison websites are your friendPick a multi-car policy – share it with others in your householdAdd your licence numberPay annually rather than monthly – save yourself interest payments
It comes as insurance premiums hit “record-breaking levels” in 2024, according to Confused.com.
Fees are up 12% on last year, with drivers now paying an average of £632.
Meanwhile, Brits were warned they could cost themselves thousands by leaving some unexpected items in hot cars this summer.