Car insurance quotes rose by up to 67% last year, and the increases are expected to continue till mid 2024. This means EVERYONE should check now if they can lock in a cheap quote – even if not at renewal. And while insurers can no longer charge renewing customers more than newbies, that doesn’t mean you’ll get the best price by staying put. Our cost-cutting system and Compare+ Car Insurance tool help you find a cheaper deal.
What is car insurance?
Car insurance protects other road users if you damage their vehicle or property. And depending on the level of cover you have, it can also cover your car if it is stolen, broken into, or if you’re involved in an accident.
All cars must be insured, unless not in use and off the road (for example, stored in a garage), with a statutory off road notification (Sorn).
There are three main types of car insurance cover, which we cover in more detail in our types of car insurance guide, but in brief, you can opt for:
- Third party. This is the minimum level of cover needed to drive legally, and only covers damage to someone else or their property.
- Third party, fire and theft. As above, but with additional cover in case the car gets stolen or catches ablaze.
- Comprehensive. The widest level of cover available. You get third-party, fire and theft cover, plus if you have an accident and it was your fault you can claim the cost of repairing your car (as well as any damage you cause to someone else or their property).
What’s the cheapest type of policy?
This isn’t a straightforward answer as the cost – your premium – is based on how much of a risk insurers perceive you to be. It’s about how likely the insurer thinks you’ll be to make a claim – so, for example, new , young drivers will pay more than someone who can prove they’ve been accident-free for years.
This also extends to the type of policy. You’d naturally assume third-party cover would be cheapest because it’s lesser cover, but car insurance isn’t always logical.
Some insurers may see you as more responsible if you opt for comprehensive, so price you as a lower risk, giving you a wider level of cover for a smaller cost. There are no hard and fast rules here though – it’s a matter of trial and error when getting quotes. But never just check third party if you’re looking for the cheapest policy.
Read on for full help and tips, or see our Young drivers’ insurance guide if you’re aged 17-24 or Multicar insurance if you’ve more than one car to insure.
Get cheap car insurance quotes
So now you know the basics of car insurance, here are the steps you need to follow to ensure you find the cheapest price possible.
Step 1: Get quotes from comparison sites, two or more is best
Comparison sites are technically insurance marketplaces, as they are allowed to negotiate their own prices with insurers (as long as they don’t cost more than going direct).
Therefore it’s not just that different insurers will appear on different comparison sites, it’s also that different sites can have different prices for the same insurer. So it’s best to use at least two, and more if you’ve time, to maximize your chance of getting the cheapest quote.
Below is our current order of which to try, though the difference in order is small, so if any of their perks really appeal (see below), as long as you’re trying a couple, go for those you like most.
Step 2: Check if cashback sites’ comparisons can beat your top quote
If you use cashback sites, you’ll know that if you get your car insurance via them they will get a ‘lead fee’ for sending you on to the insurer. Once they’re paid the fee by the insurer, the cashback will either be paid directly to you, though some are now starting to only pay the cashback to a charity.
It’s also worth knowing buying this way can sometimes beat going to the comparison sites above, but do check your quote through a cashback site isn’t more expensive – and it’s best to think of the cashback as a bonus, rather than 100% guaranteed as sometimes the deal isn’t tracked or the cash paid out.
There’s a version of MoneySupermarket.com’s comparison on cashback site Quidco* and a version of Confused.com’s on Topcashback* , where you’ll get £45 if you buy a policy through either of them. (You don’t get the standard MoneySupermarket or Confused perks too.)
Yet as we say above, do keep an eye on the quotes you get as you may not get exactly the same prices as you would from the price comparison websites’ own results.
The easiest way to do it is to look at the quotes you get, then take off £45 from Quidco’s or Topcashback’s cheapest , and see which works out cheapest for you.
Our Top cashback sites guide has full information on how these sites work.
The current record’s 96p for a year’s car insurance from someone who went through a cashback site. This is an extreme example, but let us know if it’s worked for you or if you’ve beaten this record.
Step 3: Once you’ve found the cheapest quote, try to haggle a bigger discount with your existing insurer
Haggling is not a must – especially if you want to try a new provider – but if you’re looking to renew with your current insurer it’s well worth contacting it to negotiate.
Once you’ve followed the steps above and got the overall cheapest price, give your insurer a call or use its online chat to see if will beat or match it. Usually it’s as simple as asking, but if you’re not getting any luck , see our Car and home insurance haggling guide for top tips.
Step 4: Finally, check the policy carefully before buying
Once you’ve found the cheapest quotes, there are a few things to do…
Double-check the quotes. Click through to the insurance provider’s own website to read the quotes thoroughly, as some comparison sites make a few assumptions to speed up searches.
Check the insurance company is registered with the Financial Conduct Authority (FCA). The insurer will usually say it is but always check on the FCA register .
Check if the policy is suitable for your needs and whether you need any add-ons. There are always extras to choose from, so make sure that the policy you’ve picked only includes the ones you want.
How to complain about your insurance provider?
The insurance industry doesn’t always have the best customer-service reputation, and while a provider may be good for some, it can be hell for others.
Common problems include claims either not being paid out on time or at all, unfair charges for changing address, drivers, car or exclusions being hidden in small print. It’s always worth trying to call your provider first, but, if not,
Will a policy cover me to drive other cars?
Obviously, car insurance covers you to drive your own vehicle (that you have insured) but some comprehensive policies insure you (not the named drivers) if you’re driving the cars of your friends and family – with their permission, of course. Check with your insurer that you definitely have this extension of cover.
You may also be covered to drive hire cars. However, if your comprehensive cover allows you to drive other vehicles, this is usually only up to the level of third-party coverage – so no theft or fire damage cover is provided. If you
‘ re the generous sort, you can add other drivers to your policy – known as named drivers – and they’ll be covered to drive your car. Even if you’re not generous, adding a second responsible driver can also help lower the cost of your coverage.