Allowing your car insurance to auto-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 the cost of motor insurance has recently slowed, it’s risen by a third since last year. According to the Association for British Insurers (ABI), an industry trade body, the average comprehensive car insurance quote across the first quarter of this year is nearly £160 more than its price in the same period in 2023.
However, it did say that the typical car insurance premium rose by 1 percentage point when compared to the fourth quarter last year. This was despite the value of the average claim rising by eight percentage points to £4,800 in the same period.
“These figures show how competitive the motor market is, with insurers absorbing significant cost rises but keeping prices relatively stable,” said Mervyn Skeet, director of general insurance policy at ABI.
So, if you’re looking for a new motor insurance policy, take advantage of the competition by exploring your options. You can use our comparison tool to find personalised quotes, but if you’re just looking for the top providers with the most comprehensive cover we list them below.
We also explore:
Read more: Why are car insurance premiums increasing?
The top car insurance providers
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: Eleven tips for getting cheaper car insurance
– Insurance tailored for those over 50
– Includes a price fix promise for stability
– Could also include cover for driving in EU
The centrepiece of Saga’s insurance, and a big reason why it won the best car insurance provider in the Times Money Mentor 2024 awards, is its three year price fix guarantee. This means if your circumstances don’t change, Saga pledges to keep your car insurance premium the same for three years.
In a world where car insurance has been on the rise, it can be a savvy perk. So it’s worth noting that it’s only available to Saga Plus customers – those which take out the most premium policy the insurer has on offer.
Saga Plus also includes private medical treatment up to £1 million if you or a spouse is injured in a road accident, onward taxi travel if your vehicle is too damaged to drive, and key protection.
– Pays out if your vehicle is involved in an accident with an uninsured driver
– If you meet certain eligibility criteria, Aviva will insure you for driving other vehicles
– Pays out in case of serious injury or death from road accident
Aviva made the shortlist for 2024’s Times Money Mentor Awards for its exceptional customer service. For its size, it had relatively few Financial Ombudsman Service complaints and it has a 4.5 star rating out of 5 on Trustpilot.
While it features are fairly standard compared to other providers, it could be a decent option if top customer service from a respected brand is a top priority.
– Includes many features as a standard which others make optional; like key protect and misfuelling
– Comprehensive cover in Europe for up to three days
– Customer support available 24/7
Autosan received a five star rating from Defaqto, our data provider, and much of this is due to the cover it provides.
In addition to key protect and misfuelling, Autosan also allows for child car seat cover, personal belongings cover, and windscreen cover as a standard.
There is, however, the choice to add extras to your policy such as excess protection and breakdown cover.
– Another option for high end vehicles
– Pays out up to 25% (to a maximum of £100,000) over Agreed Value to restore it back to its condition before the covered accident occurred
– GAP insurance included as a standard
Most insurers declare a total loss if repairs for your vehicle amount to 60% of more of its worth. Chubb, meanwhile, are willing to go up to 125% of your vehicle’s worth (up to the value of £100,000).
Again, this is a niche insurer that only covers high performance vehicles and classic cars.
– Insurance tailored for high value vehicles (at least £75,000 in value)
– Drivers need to be at least 40 years old
Admittedly, Hiscox’s car insurance will only be available to a select few. Cover starts at vehicles worth £75,000 and tops out at a value of £15 million.
Serving this small market means Hiscox is also able to provide a bespoke level of customer service which you won’t find from other providers.
Honourable mentions
While these car insurance providers weren’t shortlisted in our awards, they still provide value for money.
– Personal injury cover up to £10,000
– 180 days European cover each year
– Courtesy car as standard while yours is repaired
John Lewis won “Best Car Insurer” at the Times Money Mentor awards last year, with one judge describing the provider as, “Consistently one of the best performers on service and a strong product”.
If you need to make a claim, it has a simple process where you can get in touch with its call centre 24 hours a day.
It also offers breakdown insurance through the RAC and protection for your no claims discount as an add-on.
– If your car is less than two year old when it’s stolen or written off NFU Mutual will replace it
– Cover in Europe
– Breakdown insurance included as a standard
As a runner up in the Times Money Mentor Awards last year, one of our judges described NFU Mutual as a “quality operator”.
As a mutual, it works differently to its competition. For one, NFU Mutual rewards its existing customers with a savings bonus when they renew their policy and it charges no administration fees for adjusting your policy.
Plus, its annual and monthly premiums add up to the same figure, so there’s never an excess charge if you want to split your insurance into manageable instalments.
– All comprehensive policies include a courtesy car
– Includes up to £5,000 personal injury cover on comprehensive cover
– Windscreen cover included on comprehensive cover (Excludes Essential Tier)
It also includes:
– Personal Belongings cover of up to £200 on Admiral & £300 on Gold and Platinum
– Up to 90 days cover in Europe on all policies except Essential Tier
– Choose between a replacement or money when your car is written off
– 24 hour helpline
– Up to £10,000 cover for personal accidents
Churchill is a provider which caters for all types of drivers. For younger clients it offers a telematics policy to bring their premiums down while there is also bespoke cover for over 50’s.
Beyond this it also provides a most of optional extras to personalise your policy. This includes no claims discount protection, breakdown cover, and motor legal cover.
– Personal injury cover up to £10,000
– You’ll be assigned a personal claims manager instead of getting in touch with a helpline
– Get up to 90 days cover for driving in countries like Germany, France, and Spain
With Marks & Spencer you’ll have the choice between two levels of cover, Standard and Premier.
Standard cover will come with uninsured driver protection, £200 belongings cover, and child seat cover among other perks. It’s the company’s basic level of protection with Premier including this plus a few other benefits. This includes European and UK breakdown cover and the use of a guaranteed replacement car if your vehicle is involved in an accident, damaged by fire, or stolen.
One of its key features is that it offers a best price guarantee – so if you find an online provider offering a cheaper, comparable GAP insurance quote it will match or better the price.
ALA Insurance offers policies across new, used, lease and pre-reg vehicles.
How much is car insurance in the UK on average?
According to the ABI, the average car insurance premium in the UK costs £635 a year.
It’s a figure which has increased, partly due to the rising number of claims in the industry. EY, an accounting company, said for every pound spent on motor insurance premiums the industry spent £1.14 on claims and expenses in 2023.
It’s also 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 premiums of over £2,800 if they were based in London. In comparison, the same cohort of drivers based in Northern Ireland were quoted an average premium of less than half this amount.
The ABI, meanwhile, said the age of a driver plays a role in determining the likelihood and cost of a claim. So, younger and more inexperienced drivers typically attract higher premiums while those aged between 66 and 70 usually pay the cheapest premiums.
Read more: How can I beat rising insurance premiums?
Breakdown cover from £6.95 a month
The RAC is one of the most recognisable providers to offer breakdown cover. Now you can get Free European Driving Kit worth £24.49.*
Go to provider site
*Applicable to selected countries. Excludes Single Trip Comprehensive cover, ends 22/10/24, 9am.
How do insurance companies calculate quotes?
Omaid Qaiser, expert at Cuvva, said the temporary 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, CEO 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 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, before explaining that some drivers could save £140 a year by moving their car to a private driveway.
Read more: How much is temporary car insurance
Find personalised car insurance quotes
With Quotezone you only have to fill in your details once and it’ll send your information to over 100 UK insurance providers. A few moments later and you can compare personalised quotes in real time, on your screen.
Don’t waste time filling out multiple forms, and you can save up £530 by using Quotezone’s comparison engine*.
Is car insurance worth it?
If you’re planning on driving in the UK, you must have car insurance by law.
The government website states that third party insurance is the legal minimum. This cover will just pay out for damages caused to someone else, their vehicle, or property.
If you’d like a policy which pays out for repairs to your own vehicle, it’s worth considering comprehensive cover instead. In the event of an accident, comprehensive cover will pay out for damages caused to third parties and your own vehicle, fire, and theft.
Plus, 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 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.
What happens if I don’t insure my car?
As mentioned, car insurance is a legal requirement in the UK. So, if you’ve been driving without cover you’ll face repercussions.
When you insure you car, your company will input your details into the Motor Insurers’ Bureau database. If it finds 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 get a fixed penalty notice where you’ll need to pay a fine of £100. After this you could be liable for an additional £1,000 prosecution fine, taken to court, have your vehicle seized, impounded, or destroyed.
Important information
Some of the products promoted are from our affiliate partners from whom we receive compensation. While we aim to feature some of the best products available, we cannot review every product on the market.
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