Those looking to take out car insurance, especially young, first time drivers have been advised that opting for third party option may not suit everyone, regardless of the reduced price.

According to uSwitch those taking out third party insurance or downgrading to the reduced cover from comprehensive cover could be a bad decision for many motorists.

During the recession the temptation is rife for many drivers to downgrade, especially if they see premiums taken every month without any gain, but this process of thought is dangerous. Currently around one million UK drivers currently have third part policies, 20% of which said they could not afford comprehensive cover and 6% admitting to downgrading in the wake of the recession.

Spokesman Mark Monteiro said: "Motorists need to assess the risk of funding a replacement car against the value of the saving to be made."

Ashton Berkhauer, insurance expert at uSwitch.com commented: "The most important thing is to research the cost of insurance before you buy a car. Young drivers must do their homework first and shop around to make sure they find the best cover and policy features to suit their needs and budget."