Parents urged to shop around for children's car insurance

Posted :25-05-2005

Mums and dads who help fund their children's car insurance are being advised that they could save money by shopping around for cover.

Parents collectively contribute £1.02 billion a year to their sons and daughters car insurance, equalling an average of £575.

Teenagers and first time drivers are in one of the highest risk bracket for insurers and their insurance is thus among the most expensive.

However these costs could be slashed by a third if consumers take the time of collecting a number of quotes from various providers, according to Sainsbury's Bank.

Currently only 25 per cent who parents contributing to their children's insurance costs shop around for a quote, meaning that the majority of mums and dads are paying over the odds for their offspring's insurance.

Highlighting this point, Joanne Mallon, car insurance manager at Sainsbury's Bank said: "With some parents deciding to pay the premiums for their children's own insurance policies as well as their own, they could find insuring all the family's cars an expensive exercise.

"Premiums can be very expensive especially when you consider the substantial differences in price available to those aged between 17 and 19. Despite this, many don't shop around to make sure that they are paying fair and competitive premiums."

Only 15 per cent of parents seek more than five quotes, Sainsbury's Bank found.

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