Allowing your car insurance to automatically renew isn’t always cost-effective, so it’s often worth exploring your options close to renewal. Our guide lists some of the top-rated providers.
While car insurance costs have slowed recently, they have risen by a third since last year. According to the Association of British Insurers (ABI), the industry trade body, the average offer of comprehensive car insurance in the first quarter of this year is almost £160 more than its cost in the same period in 2023.
However, the typical auto insurance premium is said to have increased by 1 percentage point compared to the fourth quarter of last year. This was despite the value of the average claim rising by eight percentage points to £4,800 over the same period.
“These figures show how competitive the car market is, with insurers absorbing significant cost increases but keeping prices relatively stable,” said Mervyn Skeet, director of general insurance policy at ABI.
So if you’re looking for a new car insurance policy, take advantage of the competition by exploring your options. You can use our comparison tool to find personalized deals, but if you’re just looking for the top providers with the most comprehensive coverage, we’ve listed them below.
We also explore:
Best car insurance providers
There are a wide range of companies that offer car insurance, so it is also important to find a provider that you can trust.
Below is our rundown of the top providers shortlisted for ‘Best Car Insurer’ at the Times Money Mentor 2024 Awards.
Honorable mentions
Although these car insurance providers were not shortlisted for our awards, they still provide value for money.
How much does car insurance cost on average in the UK?
According to the ABI, the average car insurance premium in the UK costs £635 a year.
That’s a number that has increased, in part due to the growing number of claims in the industry. EY, the accountancy firm, said that for every pound spent on car insurance premiums, the industry spent £1.14 on claims and costs in 2023.
It’s also important to remember that this is an average figure for the entire country and you can probably expect a different quote. This is because factors such as location and age play a significant role in determining your premium.
A recent study by comparison engine Quotezone says drivers aged 18-24 face average premiums of over £2,800 if they are based in London. By comparison, the same group of drivers based in Northern Ireland had an average premium of less than half that amount.
The ABI, meanwhile, said a driver’s age plays a role in determining the likelihood and cost of a claim. So, younger and more inexperienced drivers tend to attract higher premiums, while those between the ages of 66 and 70 tend to pay the cheapest premiums.
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How do insurance companies calculate quotes?
Omaid Qaiser, an expert at Cuvva, said the temporary car insurance provider takes “many factors” into account when determining its policies.
This includes your age, how long you’ve had your license and the type of vehicle that’s insured.
“While factors such as age can provide preliminary insights, we prefer to use a combination of data to tailor prices to an individual’s specific risk profile,” he said.
Greg Wilson, CEO of Quotezone, had a similar view. He said car insurance providers will have a different pricing strategy to determine their quotes with most insurers giving weight to your location, age, driving history such as claims and penalty points and the price of the car in question.
“Obviously there’s not much drivers can do to change these particular variables, but there are other price-sensitive factors drivers need to be aware of,” he said.
He cited monitoring your mileage and subsidizing extra safety features for your vehicle as examples, before explaining that some drivers could save £140 a year by moving their car to a private driveway.
Find custom auto insurance quotes
With Quotezone you only need to fill in your details once and they will send your details to over 100 insurance providers in the UK. A few moments later and you can compare personalized offers in real time, on your screen.
Don’t waste time filling in multiple forms and you can save up to £530 using Quotezone’s comparison engine*.
*51% of consumers could save £529.95 on car insurance. The saving is calculated by comparing the cheapest price found with the average of the next five cheapest prices listed by insurance providers on the insurance comparison website Seopa Ltd. This is based on representative cost savings from data from February 2024. The savings you can make will depend on your personal circumstances and how you have chosen your current insurance provider.
Is car insurance worth it?
If you plan to drive in the UK, you are required by law to have car insurance.
The government website states that third party insurance is the legal minimum. This cover will only pay for damage caused to someone else, their vehicle or property.
If you want a policy that pays for repairs to your own vehicle, it’s worth considering comprehensive cover instead. In the event of an accident, comprehensive coverage will pay for damage caused to third parties and your own vehicle, fire and theft.
Plus, Wilson said there’s often very little difference in price between third-party and comprehensive coverage.
“So if you can, it’s best to protect your finances and take a fully comprehensive approach,” he said.
Is my car insured?
Using a car insurance database is one of the easiest ways to check if your car is insured.
On its website, which is a register of all UK cars, type your registration number into the search bar and it will tell you if your vehicle is insured.
They won’t tell you who the insurance provider is. So you will have to verify this information yourself. A great place to start is to review your email for communications from your service provider.
What happens if I don’t insure my car?
As mentioned, car insurance is a legal requirement in the UK. So if you were driving without coverage, you will face the consequences.
When you insure your car, your company will enter your information into the Motor Insurance Institute database. If it finds that your car is uninsured, it will send you a letter warning you to buy the appropriate insurance.
If you ignore the letter, you will receive a fixed penalty notice where you will have to pay a fine of £100. You could then be liable for an additional £1,000 fine, taken to court, your vehicle seized, impounded or destroyed.
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