Best car insurance providers – Times Money Mentor

Allowing your car insurance to auto-renew doesn’t always provide the cheapest and best cover, so it’s often worth exploring your options close to renewal. Our guide lists some of the top rated providers.

While the cost of motor insurance has recently fallen, 2024’s average figures are still £78 higher than the year before, according to the Association for British Insurers (ABI), a trade body. That’s largely due to the rising value of claims, with insurers forking out £7.7 billion in payouts for their customers last year – a £1.5 billion increase from 2023. 

“We recognise that the price of cover remains a strain on household finances whilst the industry faces significant cost pressures,” said Mark Shepherd, head of general insurance policy at the ABI. 

If you’re facing a rising car insurance bill, then comparing and switching to a cheaper, better provider could be an option. 

We list and explain: 

Read more: How to make car insurance cheaper

What is car insurance?

Car insurance provides cover for incidents and accidents that involve your vehicle. The type of cover ranges depending on your policy, but in the UK you’re required by law to have at least third party-cover – which pays out for damage or injuries you’ve caused to someone else’s vehicle, property, or passengers. 

More comprehensive policies pay out for damage to your own car, theft, and even lost keys. Your payout can either come in monetary form, or a replacement for important parts.  

Read more: Our best temporary car insurance providers

What type of car insurance do I need?

Whatever car insurance provider you choose, you’ll be presented with three levels of cover: 

• Third party cover –  This just pays out for damage you’ve caused to other vehicles, property, or injuries to other people. It won’t pay out for damage caused to your own car
• Third party, fire, and theft – It covers everything included in a third party policy and the damages caused to your vehicle in the event of a fire and if it’s stolen 
• Comprehensive cover – The most complete cover available. This pays out for all the above plus any damage done to your car – whether or not it’s your fault. 

Choosing the right level of cover is a key way to keep insurance costs down. But a third-party policy isn’t necessarily cheapest; drivers who choose comprehensive cover are sometimes deemed more responsible and so are offered cheaper policies. 

The best car insurance providers in 2025

There are a wide range of companies offering car insurance, so finding a provider you can trust is also important.

Below is our round-up to the best providers who were shortlisted for the “Best Car Insurer” accolade at the Times Money Mentor awards 2024.

Read more:

Honourable mentions

While these car insurance providers didn’t quite make the cut for our awards shortlist, they still provide value for money.

How much is car insurance in the UK on average?

According to the ABI, the average car insurance premium in the UK costs £612 a year.

But it’s important to remember that this is a country-wide average figure, and you can likely 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 Quotezone, a comparison engine, said drivers between the age of 18 and 24 were facing average yearly premiums of over £3,229 if they were based in London. In comparison, the same cohort of drivers based in Northern Ireland were quoted an average premium of £1,481 less.

Read more: How can I beat rising insurance premiums?

How do insurance companies calculate quotes?

Omaid Qaiser, a cover expert at Cuvva, said the car insurance provider takes “many factors” into account when determining its policies.

This includes your age, time you’ve had your licence, and the type of vehicle being insured.

“While factors like age can provide preliminary insights, we prefer to use a combination of data to tailor pricing to an individual’s specific risk profile,” he said.

Greg Wilson, chief executive of Quotezone, had a similar outlook. He said car insurance providers will have a different pricing strategy to determine their quotes with most insurers placing significance on your location, age, driving history (such as claims and penalty points) and the price of the car in question.

“Obviously drivers can’t do much to change these particular variables but there are other price sensitive factors drivers need to be aware of,” he said.

He listed controlling your mileage and subsidising additional safety features for your vehicle as examples. Also, some drivers could save £140 a year by moving their car to a private driveway.

While most insurers consider the same information, the importance it places on this data varies by provider. 

Marshmallow, for example, is an insurer which markets itself as an affordable option for UK immigrants. 

“We also place less emphasis on UK-specific indicators such as electoral roll status, homeownership and UK driving history – areas where newcomers may not yet have a footprint,” said a spokesperson. 

It told Times Money Mentor that, where applicable, it takes into account  international driving experience when determining its pricing. That’s something the vast majority of other insurers won’t include. 

Read more: How much is temporary car insurance

Is car insurance worth it?

If you’re planning on driving in the UK, you must have at least third party car insurance by law.

But, Wilson said there’s often a very little price difference between third-party and comprehensive cover.

“So if you can, it’s best to safeguard your finances and go fully comprehensive,” he said.

Read more: How to make car insurance cheaper for young drivers

Is my car insured?

Using the Motor Insurance Bureau (MIB) database is one of the easiest ways to check if your car is insured.

On its website, which is a register with all cars in the UK, type your registration number into its search bar and it will tell you if your vehicle is insured.

It won’t tell you who the insurance provider is though. So, you’ll need to do your own checks for this information. A great starting point is to look through your emails for any communication from your provider.

Read more: Best black box car insurance providers

What happens if I don’t insure my car?

If you’ve been driving without car insurance you’ll face repercussions from the MIB and Driver and Vehicle Licensing Agency (DVLA). 

When you insure your car, your provider will input your details into the MIB’s database. Both the MIB and the DVLA monitor this database – and if either of these organisations find that your car isn’t insured, it’ll send you a letter warning you to buy the appropriate insurance.

If you ignore the letter, you’ll soon need to pay a fine of £300 and face six penalty points on your licence. After this you could be liable for an additional £1,000 prosecution fine, taken to court, have your vehicle seized, impounded, or destroyed.

The police also monitor vehicles that travel across the country through number plate recognition software – and if you’re spotted on the road without insurance it too can enforce a penalty.

Read more: How to save money with an electric car