Best Car Insurance Providers

How does a star rating help me find the best car insurance?

Our independent and impartial star ratings provide consumers with an expert view of the whole market. Customers use our star ratings as an honest and reliable way to identify the products and providers that offer the best benefits.

What parts of the car insurance policy do we look at?

The many factors we look at to determine star ratings include:

Types of car insurance available

Car insurance companies typically offer three levels of cover.

Third-party only (TPO)

This is the minimum level of insurance every driver needs to have by law. It provides cover to third parties if you injure a person or damage their property when driving, but it won’t cover you for any losses or damage you may incur.

Despite being the most basic level of cover, third-party only policies aren’t necessarily the cheapest.

Third-party, fire and theft (TPFT)

As well as offering the same level of cover as third-party only policies, TPFT policies also cover you in the event of fire or theft. This means if your vehicle is stolen or damaged by fire, you can make a claim on your policy.

Comprehensive

Even though these policies offer the highest level of protection, they may be cheaper than the more basic policies. In addition to the above, they cover any losses to you and your vehicle in the event of accidental damage or vandalism, for example. Comprehensive car insurance may also include windscreen cover, stereo and in-car entertainment system cover and personal belongings cover, but this will vary between providers.

In some cases, comprehensive policies may provide you with third-party cover to drive someone else’s car.

Classes of use

As well as choosing from these levels of cover, you will also need to select the right type of cover for your vehicle usage.

Social, domestic and pleasure covers the regular, day-to-day driving of your car, excluding commuting to work (unless specified).

Meanwhile, commuting provides cover for travelling to and from your place of work, in addition to social, domestic and pleasure uses.

If you use your car as part of your job, such as travelling to multiple locations, there are several business use options available.

What can affect a car insurance quote?

Car insurance providers assess the level of risk you present and how likely you are to make a claim when deciding on a quote. They look at a range of factors to determine the risk of a driver and the cost of their policy, and each provider may calculate these in different ways.

Some of the factors that can affect the cost of your car insurance include:

• The level of cover. Bear in mind that the minimum third-party only cover won’t necessarily be the cheapest.
• The age and model of your vehicle. Every car is put into an insurance group, which you can view online. The lower the group, the lower your insurance premiums are likely to be.
• How you use your car. Because commuting and business use mean you’re likely to be driving regularly, and probably at peak times, your insurance premium might be higher than if you only use your car for social, domestic and pleasure.
• The profile of the driver. Your age, job and driver record (such as any penalty points on your driver’s licence and if you have a no claims bonus) could influence the cost of your car insurance.
• Location. Your local area can affect your car insurance premium as living in a congested area with a high crime rate, for example, could make it more expensive.
• Where you keep your car. If you park your car at the side of the road when not in use, instead of a private driveway or garage, this could make your insurance more expensive.
• Mileage. Insurers will ask for your annual mileage when you apply for a quote. A higher mileage could increase the cost of your insurance.
• Modifications. Insurers may charge more if you’ve modified your vehicle in certain ways, such as alloy wheels.
• Any optional add-ons. Including optional extras, such as breakdown cover, personal injury cover, key cover and legal expenses, with your car insurance can make it more expensive.
• Your voluntary excess. Insurers set a compulsory excess which you need to pay if you make a claim on your policy. Agreeing to pay an additional voluntary excess could help to lower the cost of your premium.

How to reduce car insurance costs

You may be able to reduce the cost of your car insurance premium in a number of ways, including:

• Comparing quotes from different insurers. Even though FCA rules mean insurers can’t charge existing customers more than new customers for their insurance, it’s still worth comparing policies to see if you can get a better price elsewhere. Start getting quotes around one month before your policy ends to give you time to shop around — don’t leave it until the last minute.
• Paying annually instead of monthly. Insurers will often charge more if you pay for your policy in monthly instalments instead of upfront in one annual payment.
• Improving the security of your car. This could include parking on a private driveway or in a secure garage, or fitting an immobiliser, alarm, tracking device or wheel lock on your car.
• Choosing a telematics or ‘black box’ policy. Often aimed at younger drivers, these devices can track your driving and, assuming you prove you’re a safe driver, this can help to cut the cost of your insurance.
• Paying a higher voluntary excess. Choosing to pay a higher excess could cut the cost of your premiums. But bear in mind you will need to pay this higher sum whenever you make a claim.
• Reducing your mileage. A lower annual mileage means you will be driving less, reducing the chances of any incidents. However, it’s important that your mileage accurately reflects the amount you drive as going over this figure could invalidate your policy and mean you won’t be able to claim.
• Adding another named driver to your policy. Particularly if you’re a young or inexperienced driver, adding a lower-risk driver to your insurance policy could help to lower your premiums. But be aware that ‘fronting’ (when you name a lower-risk person as the main driver of a vehicle instead of the person who will be driving it most), is fraud and can have serious consequences.
• Building up your no claims discount. Also known as a no claims bonus, having a history of not making any claims on your policy could help you to get cheaper car insurance.
• Haggling. Not everyone will be comfortable with this, but, if you’d prefer to stay with your existing insurer, it may be worth calling them to see if you can negotiate the price of your quote. If you can show that other insurers can offer you a lower price, this will strengthen your position.