Compare Car Insurance

What type of car insurance do I need?

Car insurance is usually split into three categories:

Third party

This is the most basic level of car insurance. With third party car insurance, your provider will cover costs you might have to pay as compensation for injuries sustained by other people or damage to someone else’s property. This is the minimum level of cover legally required in the UK.

Third party car insurance does not cover your own injuries, theft of your vehicle or any breakdowns. You would need to pay for these yourself.

Third party, fire and theft

This level of car insurance provides the same level of cover as third party, plus protection if your vehicle is damaged by fire or stolen.

This means you would not be covered for any damage to your own car in an accident.

Comprehensive

Comprehensive insurance is the most complete level of cover on the market. As well as everything covered by a third party, fire and theft policy, you will also be protected against damage to your vehicle and personal injury costs. Comprehensive policies can also come with further cover and extra features, but the exact details will vary between providers.

How much does car insurance cost?

The Association of British Insurers (ABI) reported that the average premium paid for comprehensive motor insurance in 2021 was £434. You may find that your quotes are above or below this figure, as the cost of your car insurance will vary from person to person. The cost of your car insurance will be tailored to your circumstances and will depend in part on how likely insurers think it is that you will make a claim.

Insurers will use personal information to calculate a risk profile for a driver. Certain factors will make you seem more of a risk, based on what the insurance provider's data suggests constitutes a driver who is more or less likely to have an accident.

What affects the cost of car insurance?

• the make and model of your car
• your annual mileage
• security of your car (e.g. is it parked in a garage or on the roadside?)
• driving history (how long you have been driving for)
• claims history
• where you live
• how you pay
• your job
• your age
• your voluntary excess
• additional drivers (listing an experienced additional driver might reduce your premiums)

You could also try to reduce the cost of your car insurance by haggling with the provider, especially if your deal is up for renewal.

For some drivers, especially if you have recently passed your test, what’s known as telematics car insurance can be a way to reduce your premiums. Also called black box insurance, this involves a provider installing technology to monitor your driving habits.

How to get cheaper car insurance

There are a lot of ways you can try to reduce the cost of your car insurance. Car insurance quotes are partly based on how the provider judges the chance of you needing to make a claim, so if you can reduce that risk your costs may go down.

Building up a no claims discount (NCD), also known as a no claims bonus, can indicate to prospective providers that you are less likely to make a claim on your car insurance. For every year you don’t make a claim, your NCD goes up. This can end up having a big impact on how much you pay.

Even if you are happy with your current provider, not letting your current policy auto-renew could be one step to getting cheaper car insurance. There might be better deals out there and comparing car insurance quotes is quick and easy. If your current policy is coming to an end, use the tool on this page to find out if there is a better option out there.

You could also take more steps to secure your car. This might include installing a security alarm, immobilization technology, using a steering wheel lock or parking your car on a driveway or in a garage instead of on the road.

If you are a young or inexperienced driver, you could take an advanced driving course or add a more experienced driver as an additional motorist on your policy.

You could also consider black box insurance to show your insurer you are a safe driver.

Increasing the amount you have to pay as voluntary excess – the part of the costs you have to pay out of your own pocket – will usually reduce your premium. However, you will need to make sure that you can afford to pay that much money if you need to make a claim.

Other ways you can get cheaper car insurance include:

• change your car to one that is cheaper to insure
• reduce your mileage
• choose your job title carefully as it could affect your quote
• pay your car insurance annually
• consider a multi-car policy

Why compare car insurance with NerdWallet UK?

NerdWallet is an independent financial comparison website that you can use for free to compare the cost of different car insurance quotes.

Car insurance providers will offer different prices for a variety of reasons, mainly because some will see you as more likely to make a claim than others. The less likely they think you are to make a claim, the more likely they are to offer you a cheaper insurance quote.

By using the comparison tool on this page, you can quickly find out which companies offer the best deal for your circumstances. You can compare your car insurance quotes by the features most important to you, whether that’s voluntary excess, overall cost or optional extras such as breakdown cover.

What types of cars can I insure?

The make, model and year of your car will all factor into how much you are charged for car insurance. Some vehicles such as certain classic cars may benefit from specialist insurance policies.

Generally, an expensive car with a powerful engine will cost more to insure. That is because if you were to have an accident and make a claim, your insurer would need to pay out more to repair the damage. Also, some insurers may see driving certain types of vehicle and classes of engine as an indicator that you are more likely to be in an accident.

How car insurance quotes are generated can be complicated, but if you compare policies through the tool on this page, you can simply type in your registration number and personal details to see what car insurance quotes are generated.

You should be able to find insurance for classic cars, high-performance cars, electric cars, modified cars and more.

What policy features could I get with my car insurance?

If you opt for a comprehensive car insurance policy, you should be covered for damage caused to your car and any damage caused to other cars or property. Your policy should also protect you against personal injury costs.

Some comprehensive policies will include optional extra benefits, but you may have to pay more for these.

Common upgrades and extras include:

• legal cover
• breakdown cover
• courtesy car cover
• no-claims discount protection
• misfuelling cover

It is important to read your policy documentation carefully to find out what cover you are paying for. By comparing car insurance quotes, you can make sure that your policy is protecting you in the way you need. If you think a particular extra is essential, make sure that you take out a policy that lets you add it on.

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