The best car insurance policies can provide invaluable peace of mind. With the right cover you can be confident that you won’t be left out of pocket if disaster strikes.
But with premiums becoming so expensive, now more than ever it is important to seek out the cheapest car insurance deal you can – without having to compromise on what you can claim for.
Our guide will help you do just that, setting you up to effectively compare car insurance quotes and get the best value deal for your individual needs.
Types of car insurance explained
Car insurance can spare you a hefty bill if your car is stolen, damaged by fire or involved in an accident. But the circumstance your policy will pay out for depends on the type of policy you buy.
There are three main types of car insurance:
- Third-party only: Pays out for damage to other cars, people and property. You’ll need to foot the repair bill for any damage to your car in the event of an accident. This is the minimum level of car insurance to legally drive on UK roads.
- Third-party fire and theft: Going up a notch, this type of policy provides third-party cover plus protection if your car is stolen or damaged by fire.
- Fully comprehensive: The highest level of car insurance you can buy, ‘fully comp’ also pays for damage to your car after an accident. This type of policy will normally also include added benefits such as personal belongings cover, personal accident cover, and courtesy car cover.
Although you might expect third-party cover to be the cheapest car insurance, this is rarely the case, as it tends to attract higher-risk drivers. For the majority of drivers, comprehensive insurance offers the best value for money.
How to compare car insurance quotes
With so many different car insurance companies and so many different cover levels to choose from, it’s important to shop around and do your research, if you want to get the best car insurance.
A good place to start is with a price comparison website. Although you will need to supply a reasonable amount of information about you, your driving history and your car, the process is usually pretty quick and you should only take a few minutes. Using the information you have supplied, the site will scour the market for you and give you a list of options, starting with the cheapest.
Although price comparison websites are pretty comprehensive, some notable exceptions don’t work with them, such as Direct Line and NFU Mutual, so it’s always worth getting a quote directly from their websites as well.
Getting a car insurance quote
In order to get a car insurance quote, you’ll need to provide:
- Personal information, such as your age, address and job titles.
- Your driving history, including proof of any no-claims discount, and details of any convictions for offences.
- Details of your car, including make, model, age, and where it is parked overnight.
- What you use your car for, including your annual mileage and whether or not you need it for business purposes.
This information you supply will allow car insurance companies to come up with a quote tailored to you. Car insurance policies run for a year (unless you need short term or temporary cover) and it makes sense to shop around and compare car insurance quotes to ensure you get the best value deal.
Comparing car insurance checklist
It’s always important you look beyond the price – the cheapest car insurance quotes might not necessarily be the best value or provide the level of cover you need.
This means you need to examine each option closely to find out what’s included:
- Will you get a new car replacement if yours is written off?
- What happens if you’re hit by an uninsured driver?
- How much cover is included for personal possessions?
- How much personal accident cover is included?
- How long will car repairs be guaranteed for?
- Will you get a courtesy car if yours needs repairing after an accident?
- Will your keys be insured?
- Is windscreen cover included?
- What’s the deal if you need to drive in Europe?
- Can you get free onward travel if you’re involved in an accident?
- Will you be insured to drive other cars in an emergency?
- How much excess will you need to pay towards a claim?
- Will you need to pay an excess for a vandalism claim?
- Can you get a discount if you need to insure more than one car?
- Is there a 24/7 claims line?
- How do you manage the policy – is it online only?
There are no right or wrong answers to these questions – rather it’s about getting a proper understanding of what is covered by a policy. There’s no point paying more for cover you don’t need or value but, equally, it’s a false economy to buy the cheapest policy if you end up disappointed with the cover when you claim.
In addition to checking the cover and the price, you might also want to think about customer service too and avoid choosing an online-only brand if you prefer to pick up the phone. Most car insurance providers will show a Trustpilot score on their website, which can be a helpful indicator of other customers’ experiences.
Cost of car insurance
According to the most recent data from the Association of British Insurers (ABI), the average car insurance policy cost £561 in Q3 2023.
However, in reality your quote could be much higher (or slightly lower) depending on your age. For example, at the end of last year, premiums for 17 to 19 year olds were more than 160% higher than for 50 to 64 year olds. That’s based on comprehensive policies bought through MoneySuperMarket between October and December 2023.
Finding cheap car insurance quotes
Unfortunately car insurance can be expensive – especially for young drivers with limited experience or those who have been in an accident, even if they weren’t at fault.
And costs are rising at an alarming rate too. According to Confused.com’s car insurance price index, costs are currently the highest on record – up 40% over the last 12 months at an average of £776.
However, there are ways to find cheap car insurance and keep spiralling costs under control:
Don’t auto-renew your car insurance
Auto-renewal removes the risk of your cover lapsing, but you will normally get cheaper car insurance if you shop around each year with a price comparison website.
Drive carefully
The longer you can go without claiming on your car insurance, the bigger the no-claims discount you will get. By driving carefully you will also reduce the risk of a driving conviction like speeding, which can push up your costs.
Avoid modifications
Changes you make to the appearance or performance of your car can make your car insurance more expensive. Before making any ‘mods’ contact your insurer to find out what impact it will have on your premium.
Consider a black box
Black box or telematic insurance policies involve fitting a device to your car (or an app on your smartphone) that monitors your driving. This includes your speed, braking and cornering as well as the time of day you drive and enables your insurer to give you a price based on your driving style. Telematics can be a great way for younger drivers to cut their costs if they drive carefully and limit their night time driving.
Pay annually
Paying for car insurance monthly might make your budgeting easier, especially when premiums are rising. However, when you pay monthly interest charges will be added, meaning you’ll pay more for your policy overall.
Increase your voluntary excess
By increasing the excess you need to pay when you claim, it’s possible to get cheaper car insurance. But it’s important not to increase it so much that you would struggle to pay it in the event of a claim.
Consider who you add to your policy with care
Adding a parent as a named driver can be a helpful way for younger drivers to get cheaper car insurance, as they will be older with more driving experience. However, older, experienced drivers will likely see their costs go up if they add a younger or new driver to their policy.
Think about your mileage
It’s easy to overestimate how many miles you’ll drive each year, so it’s a good idea to be as realistic as you can. You can get an idea of your annual mileage by checking previous MOTs.
You can check your MOT history here.
Don’t buy optional extras unless you need them
Optional extras like breakdown cover will push up the cost of your car insurance, so only add them if you really need them. You may already have some legal cover with a home insurance policy or bank account. In some cases cover can also be purchased for less on a standalone basis.
What factors influence the cost of car insurance?
There are a huge number of factors that will affect the cost of your car insurance. You might not be able to control them all, but having an understanding of what will make your car insurance more or less expensive can sometimes help you reduce your costs (or at the very least help you understand why you’re paying so much):
- The car you drive: The more expensive your car was to buy, the more expensive it will be to insure. Bigger cars with powerful engines will also cost more to insure than smaller runarounds. All cars are categorised into insurance groups from 1-50. The lower the group, the cheaper it will be to insure. Read our guide to using a car insurance group checker to find out which group your car is in
- Where you park your car overnight: There’s a higher risk of theft if your car is parked on the street
- Your age: Younger drivers will pay the most for their car insurance. Costs fall as you gain experience, but can increase again in old age
- Your job: If you drive for work or commute in rush hour you will pay more than someone who takes the train into the office
- Your driving history: If you have previously made claims on your car insurance or have points on your licence, your car insurance costs will go up
- The size of your excess: The bigger the excess you can afford to pay, the cheaper your car insurance will be
Car insurance optional extras
When comparing policies it’s also worth factoring in the cost of any bolt-ons you can buy to boost your cover. Bear in mind that some of these – for example motor legal protection – may be included as standard on some comprehensive car insurance plans, especially those marketed as enhanced cover, with words like ‘premier’ or ‘plus’ in the title.
Optional car insurance extras include:
- Breakdown cover: Help to get you back on the road if your car breaks down, or your car won’t start in the morning (home start only on some plans)
- Motor legal protection: This can help you claim compensation for losses you might incur after an accident by paying your legal fees (non-fault accidents only)
- Courtesy car: Ensures you aren’t left without access to a car while yours is being repaired after an accident
- No claims discount protection: If you’re eligible, you may be able to buy cover that protects your no claims discount if you need to make a claim
- Car key cover: Covers the cost of replacing your car keys if they are lost or stolen
- Driving abroad: All insurance policies will offer third-party cover for driving in Europe, but you want to upgrade your cover to fully comprehensive
Finding the best car insurance companies in the UK
These are the top 10 car insurance companies by market share in the UK in 2024.
| Company | Trustpilot score (out of five) | Brands | On price comparison sites? |
|---|---|---|---|
| Admiral Group | 4.4 | Admiral, Bell, Diamond and Elephant.co.uk | ✓ |
| Aviva | 3.9 | Aviva, Quotemehappy | ✓ |
| Direct Line Group | 3.7 | Direct Line, Churchill, Privilege | Churchill and Privilege: ✓ Direct Line: x |
| Hastings | 4.1 | Hastings Direct Hastings Premier Hastings Essential Hastings Direct You Drive Hastings Pink People’s Choice | ✓ |
| LV | 4.5 | LV | ✓ |
| RSA | 1.4 | RSA, More Than | ✓ |
| AXA | 4.3 | Axa UK Moja Swiftcover | ✓ |
| NFU Mutual | 4.4 | NFU Mutual | x |
| Esure | 3.1 | Esure Sheilas Wheels First Alternative | ✓ |
| Ageas | 4.1 | Ageas | ✓ |
Admiral Group
There are a number of car insurance brands under the Admiral Group umbrella. Bell offers ‘black box’ insurance for young drivers while Diamond targets women. Admiral offers single and multi-car insurance and has been voted Best Car Insurance Provider for nine years in a row. Its comprehensive car insurance also has a five-star Defaqto rating for scope of cover and benefits (the highest available). Read our full Admiral review here.
Aviva
Aviva offers car insurance across the board including cover for classic cars, telematics insurance and insurance for electric and hybrid cars. It also offers savings if you insure more than one car on the same policy. It also has a five-star Defaqto rating. Quotemehappy is also an Aviva brand. With no call centres, cover is sold and managed online – you’ll only have to pick up the phone if you need to claim. Read our full Aviva review here.
Direct Line Group
Direct Line isn’t available on price comparison sites, but you can buy cover online or over the phone. Direct Line and its sister brands Privilege and Churchill offer a choice of comprehensive cover or comprehensive plus with added extras and higher limits.
Hastings
Hastings Direct is the flagship brand – its focus is good value and its cover has earned a five-star rating from Defaqto. Hastings Premier offers a higher level of cover with extra features included like motor legal protection and breakdown cover. Both offer driving other cars as standard. YouDrive is Hasting’s black box proposition.
LV
LV also gets a five-star rating from Defaqto and its comprehensive car insurance includes windscreen repair and replacement, accidental damage cover as well as new keys if yours are lost or stolen.
RSA
RSA and More Than stopped selling car insurance on 1 September 2023 but if you have a policy with them already, it will carry on running until the end of its term.
AXA
AXA’s offers three-star Defaqto rated car insurance as well as its five-star rated AXA Plus car insurance, which also includes stolen key and misfuelling cover. Sister brand Moja offers online-only car insurance – its contact centre is solely for claims. Swiftcover is also an online proposition with a focus on good value no-frills protection.
NFU Mutual
NFU Mutual offers motor legal protection, breakdown cover and a courtesy car as standard on its comprehensive car insurance. It also has a five-star rating from Defaqto. It doesn’t feature on price comparison websites though, so you’ll need to approach NFU Mutual directly.
Esure
Esure’s five-star Defaqto rated comprehensive car insurance includes cover while driving other cars, legal cover, windscreen cover and a courtesy car. Its sister-brand, Sheilas’ Wheels, targets female drivers.
Ageas
Another provider of five-star rated car insurance, Ageas car insurance cover includes courtesy cars as standard. It also doesn’t charge an admin fee when you need to make changes to your policy.
How to find the best car insurance quotes in the UK
There isn’t one best car insurance provider in the UK. Which policy is best for you will depend on you, the car you want to insure and your driving history.
It’s easy to compare car insurance quotes on comparison websites, but it’s important not to judge policies just on price – the cheapest car insurance quote won’t necessarily be the best if it doesn’t deliver what you expect in the event of a claim.
Before you make a decision check each policy you are considering and compare the cover they offer to ensure you get the best value for money.
Checking your car insurance status
Driving without insurance is a criminal offence in the UK. So, if you have any doubts at all as to whether your car is insured it’s important to check straight away.
The quickest way to check car insurance is to run an online search with the Motor Insurance Database using its askMID search tool. Simply enter your car’s registration number and it will tell you whether your car is insured.
AskMID won’t, however, tell you which insurance company your policy is with. However, if your mind is still drawing a blank, there are a number of ways you can check yourself.
- Search your inbox: There’s a good chance your policy documents were emailed to you, so try entering ‘car insurance’ into your search bar
- Check your bank statements: Look for payments going out to insurance companies
- Dig out your paperwork: See if you can find a hard copy of your policy document at home, wherever you tend to keep your important paperwork
- Log onto your preferred comparison website: If you use a comparison site log into your account and you should be able to find the details there
If all of the above fails, you can submit a subject access request with the Motor Insurance Bureau to check which car insurance provider your policy is with. However, it can take up to a month to get the information you’ve requested.
There might also be occasions where you need to check if another car is insured. AskMid offers a separate search service that allows you to check the car insurance status of another car but it is only intended to be used in the event of an accident. There is a £10 fee for the service.
If you have a car that you aren’t currently using, the only way you can avoid paying for insurance (or tax) on it, is to formally declare it as off road with a Statutory Off Road Notification (SORN). Once this has happened though you will not be permitted to drive it on any public roads, nor will it be covered if it’s stolen from your drive or garage.
Frequently asked questions about car insurance UK
Before you start to compare car insurance quotes, it is a good idea to have the following information to hand:
You:
- Your name
- Your date of birth
- Address
- Your job
- Any relevant medical conditions
- Whether you own your home or rent
- Whether you’re married or have children
- Details of anyone else you would like to be insured on your car (named drivers)
Your driving history:
- The type of licence you have
- When you passed your test
- Your driving licence number
- Information about previous car insurance claims
- Your no-claims discount
- Details of any points on your licence
- Whether a car insurer has ever rejected an application from you
Your car:
- Make and model
- It age
- Where it’s parked overnight
- Security and modifications
- How you’ll use your car – for example, for socialising and errands, commuting or for work?
- Your estimated annual mileage
It’s easy to get a valuation online. Autotrader offers a free valuation service based on data from millions of cars that can give you an accurate idea of your car’s current market value.
When you buy car insurance your insurance provider will need to run a ‘soft’ credit check to confirm your identity. This will not have any impact on your credit score.
However, if you decide to pay for your car insurance monthly, it will need to run a ‘hard’ check, which will show up on your credit report. This is because when you pay for your insurance monthly, rather than annually, you are effectively taking out a loan with your provider and they will want to be confident that you will pay the money back.
The vast majority of car insurance claims are paid. Rejections only tend to happen when a driver has supplied incorrect information or the policy doesn’t offer the cover they expected. This is why it’s essential to answer all questions carefully and honestly when you apply for cover and check the cover provided. If you aren’t happy with a decision you need to follow your insurer’s complaints process.
Simply contact your insurance provider to cancel your car insurance. You may have to pay a fee to cancel your policy early. If you’re buying a new car you can normally update your existing policy, you don’t have to cancel it.
You can’t normally time your car insurance to a specific time of year. However, comparison websites agree it’s often cheaper to renew your car insurance a few weeks before it runs out, rather than leaving it to the last minute.
The cheapest car insurance quotes aren’t necessarily unreliable but they are likely to offer lower levels of cover and pay less generous benefits. Always check what is included in a cheap car insurance quote before you buy.
Price comparison websites can scour the market to help you find the best car insurance, but check if the cover is right for you, rather than selecting the cheapest quote. A five-star Defaqto rating is the highest accolade for quality of cover, while Trustpilot scores (also out of five stars) can show you what other customers think of the insurance company.
You can transfer car insurance onto a new car, but not to a new driver. You can, however, add a named driver to your policy if someone else needs to drive your car.
It’s a commonly held belief that taking an advanced driving course can lower the cost of your car insurance. While this is true of select providers that take this into consideration, many won’t care that you’ve got an advanced driving qualification.
So if your main reason for taking such a course is to get cheaper car insurance, you’ll need to check that your chosen provider acknowledges these qualifications beforehand.
Taking out comprehensive car insurance doesn’t automatically allow you to drive someone else’s car. However, some comprehensive policies will include a Driving Other Cars (DOC) benefit, as long as you meet any eligibility requirements. For example, you’ll normally need to be at least 25 years old.
If your comprehensive policy says you can drive other cars, you’ll likely only be able to do so with third party insurance. This means if you get into an accident driving someone else’s vehicle, you’ll only be covered for third party liability, such as causing an injury or property damage.
If you regularly need to drive someone else’s car, a better option would be to become a named driver on that person’s policy.
Connor brings nearly a decade of expertise in personal and business finance writing to his current role at MailOnline Compare. As our personal finance specialist, he expertly guides readers through a variety of topics, including insurance, banking, energy, and loans, with an aim to simplify complex financial matters.
