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Motor insurance quotes for new cars 'not always more expensive'

07 Sep 2010

Car buyers heading online to compare motor insurance quotes for brand new vehicles with older ones may be surprised to learn that cover for second-hand models does not always offer better value.

Researchers at moneysupermarket.com analysed the cost of motor insurance premiums for five and ten-year-old cars, compared with the cost of arranging cover for a brand-new model.

They found that for a Ford Fiesta, one of Britain's most popular cars, motor insurance customers could pay 20 per cent less for annual cover on a 2010 model compared to one registered ten years earlier.

Steve Sweeney, head of car insurance for the website, said: "It's a common belief a new car will be more expensive to insure than an older model, but our research reveals there are some occasions where this is not the case."

Last week, advice website Honestjohn.co.uk suggested that, with the government's VAT increase not due until January 2011, now is a "good time to buy a new car".

Posted by Michael Brown