Younger Driver - Level of Cover Advice
Often more mature drivers opt for Fully Comprehensive cover, but what should a Young Driver do? Are the discounts on Third Party cover worth it or should the extra benefits be sought?
Ultimately these are personal decisions but if Comprehensive Cover, as it sometimes can be, is a similar price it is tempting to upgrade.
This can be misleading though, remember if you claim for an accident on Comprehensive Cover you will pay an excess as well as losing your No Claims Bonus.
Consider the two models below to compare scenarios where you are covered Third Party or Comprehensively:
Third Party
£1000 |
Premium |
Comprehensive
£1200 |
|
| £0 |
Excess after an accident |
£350* |
| £0 |
Additional Premium |
£200 |
| £0 |
Loss of No Claims Bonus |
£360 |
|
|
|
Total Extra |
£910 |
*Typical value
In this situation, whilst paying only a little bit more for the Comprehensive cover, consider the excess you would pay and the loss of your No Claims Bonus. This means that the claim must be at least £1000 to be worth the difference. Remember that this is only a crude example and that:
- A claim for Fire and Theft will also affect your Third Party, Fire and Theft policy
- If the claim is not your fault and you have legal protection you should be able to cover your losses.
The best advice is to get Motor Insurance quotes for both Third Party and Comprehensive policies.
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