Cheaper used cars boast lower car insurance premiums

Posted :23-03-2006

Motorists who plump for more expensive second hand cars are more likely to be the victim of a fraudster than drivers who go for cheaper used cars, raising their car insurance premiums in the process, according to a new report.

The latest findings from the AA Car Data Check show that people who pay more than £10,000 for a used car are putting their wallets at risk by failing to check the history of the car before buying it.

Such recklessness is despite the fact that one in three cars have a hidden history, such as outstanding finance, write-off or stolen markers, leaving many car buyers, both out of pocket and potentially with inadequate car insurance cover.

AA Car Data Check revealed that only 17 per cent of people buying a used car worth more than £10,000 conduct a car history check. This compares to 62 per cent of people buying a car valued at between £2,000 and £6,000 who do conduct a check of the car's history.

The dangers associated with hidden histories can be severe both in a financial and a more real sense. There were nearly four million finance agreements taken out last year alone, with many still outstanding on the car sold.

Rob Whalley, managing director of Experian's automotive division, said: "Buying a used car is risky and not enough people are aware of the issues or take the necessary precautions. One in every three cars checked in the UK has a hidden history, so the possibility of buying a car that still has outstanding finance, that is recorded as stolen or has been written-off, is high."

As a result, drivers are urged most strongly to check the car before buying it, as serious flaws will either raise car insurance premiums, or make the car totally uninsurable.


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