Top 10 Cheapest Car Insurance UK 2024

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Top 10 Cheapest Car Insurance UK 2024

What is car insurance?

Having car insurance ensures you are covered financially if the worst were to happen to your car. Such incidents could involve damage from an accident, theft, vandalisation and fire damage. Car insurance means you won't have to dig into your pocket to pay for potentially huge repair or replacement costs.

Car insurance is a legal requirement for cars driving on public roads. You will be heavily penalised if you are found to be driving without insurance. The minimum level of coverage you must legally have is third-party car insurance. Third-party insurance covers the damage to another person's car, for example, in a collision accident, but provides limited cover for your vehicle.

Quotes from over 110 top UK insurance providers

How much does car insurance cost?

Car insurance is either made up of an annual or monthly premium. Annual premiums are paid in a single lump sum when a policy is purchased; monthly premiums require a deposit and a monthly direct debit. Many factors come into play that will affect the cost of your car insurance. It needn't cost the earth when you take the time to compare premiums.

Why compare with Insuro?

Compare the UK’s Top 10 Cheapest Car Insurance Companies in 2024

Car insurance can be a significant expense, and it is essential to compare different companies to find the cheapest option. We’ve compiled a list of what the UK considers the top 10 most affordable car insurance companies. Reviewing this guide will likely help you find which companies are most popular in the UK.  

Finding the Right Insurance for you – Explore our List of Top 10 Car Insurance Providers

It is essential to look for the most competitive car insurance quote. However, it is also crucial to consider how comprehensive the coverage is and what the insurance policy covers. Many discounts are available for drivers, especially if you have a black box or a “no-claims discount”.  

At Insuro, we make getting a car insurance quote as simple as possible. Compare our list of the ten cheapest car companies and find a policy that works for you. By comparing on Insuro, you could save up to £504* per year.  

Who are the UK’s Top 10 Cheapest Car Insurance Companies?

The UK’s cheapest car insurance company can vary depending on several factors, including a driver’s age, location, driving history, and more.   

However, some of the UK’s most affordable car insurance companies, based on customer reviews and independent financial studies, include:  

While these companies may be among the most affordable, the best car insurance companies will depend on individual circumstances, so we always recommend comparing quotes from several companies.   

When comparing premiums, consider coverage options, deductibles, and policy limits before purchasing insurance.   

Need a Quote Now?

Use our insurance calculator to find personalised quotes in minutes from over 100 top UK insurance companies, with trusted results provided by SEOPA.  

Sources

How to Compare Car Insurance with Insuro in 5 Easy Steps

Comparing insurance premiums with Insuro is quick and easy. Here are the steps:  

  1. Complete your reg at the top of the page.  
  1. Enter your personal and vehicle details.  
  1. Select the type of coverage you would like.  
  1. View the results.  
  1. Choose the company that best suits your needs.  

With over 1 million quotes, join our ever-growing list of satisfied customers and find your quotes today.  

Why Use a Car Insurance Comparison Website?

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Which Types of Drivers are the Cheapest to Insure?

Car insurance companies determine their prices based on a driver’s age, driving history, location, vehicle make and model, and more. Based on these factors, some drivers may be classified as riskier, leading to higher insurance premiums.   

Generally, drivers who fall under these categories tend to be the cheapest to insure:  

Different insurance companies may use various methods to assess risk, leading to differences in pricing for the exact driver between companies. It’s always recommended to compare quotes from multiple providers before renewing to find the most competitive deals.  

How do Car Insurance Companies Make Money?

Car insurance companies generate income in two primary ways:  

  1. Firstly, by collecting insurance premiums from their policyholders.  
  1. Secondly, insurance companies allocate a portion of the premium income they collect and invest it in various financial markets.  

For example, while every premium paid contributes to the pool of funds used for claims, not all policyholders will file claims during their coverage period. This means that a portion of the premiums collected remains unclaimed, allowing insurance companies to potentially generate profits.  

In essence, insurance companies aim to strike a balance between collecting adequate premiums to cover potential claims and managing the risk of payouts. This ensures their financial stability and ability to meet policyholder obligations over time.  

Why Would a Car Insurance Company Refuse to Insure You?

There are numerous reasons why a car insurance company in the UK may refuse to offer cover.  

For example: 

Why are Car Insurance Companies Not on Comparison Websites?

Some car insurance companies opt not to be featured on comparison websites for various reasons.   

One reason could be the cost, as many comparison sites charge insurers a fee for each policy sold through their platform. Another reason could be that they think their policies are distinctive or complex and can’t be directly compared with policies offered by other insurers.   

In some instances, insurers prefer a direct relationship with their customers, which is best achieved by selling directly rather than through comparison sites.  

Do Car Insurance Companies Check Your Credit?

In the UK, car insurance companies might perform a ‘soft search’ on your credit score when you apply for a policy.   

Here’s what you need to know: 

Do Car Insurance Companies Check Your Mileage?

Yes, car insurance companies do check your mileage.   

Insurance companies track mileage because the distance you cover each year is one of the factors they use to estimate your risk level – the more miles you cover, the higher your chances of being in accidents.   

When you take out a policy, you’ll be requested to estimate your annual mileage, and it’s crucial to be as accurate as possible. Some insurers may corroborate this information through MOT records or in-car black box telematics devices.  

Can Car Insurance Companies Automatically Renew Your Policy?

Yes, Car insurance companies in the UK can automatically renew your policy.   

The Financial Conduct Authority requires insurers to notify you before any renewal, typically between 21 and 28 days before your policy concludes. Notice periods allow you to shop around and compare car insurance quotes.   

You should contact your insurer if you prefer to keep your policy from renewing automatically.  

Can Car Insurance Companies See My Driving Record?

Yes, UK car insurance companies can access your driving history and use this information to help assess the risk of insuring you.  

They can see any penalty points you have, along with details of any accidents or convictions. If you have a poor driving record, you’re likely to face higher insurance premiums, and in some cases, you might find it challenging to obtain insurance.   

Honesty about your driving history is vital when applying for insurance, as inaccuracies can lead to policy cancellations or claim rejections.  

Why Have Car Insurance Prices Gone Up?

In the UK, several factors influence the rise in car insurance prices. In recent years, the most common of these include:  

1. Inflation: Higher repair and medical costs due to inflation lead to increased insurance payouts, impacting premium prices.   

2. Fraud: The ABI (Association of British Insurers) reported that in 2020, 107,000 fraudulent insurance claims were detected in the UK, equating to one every five minutes, with a total value of £1.2 billion. This significant expenditure unavoidably impacts the premium prices for all policyholders to some extent as insurers seek to mitigate losses.  

3. Technological Advancements: Repair costs have risen with the complexity of technologically advanced vehicles, driving up insurance claims costs and premiums, especially with the prevalence of expensive electric cars.  

Which Age Groups Are Most and Least Expensive for Car Insurance?

According to Statista, drivers aged between 17 and 24 in the UK have consistently faced the highest average premium costs for car insurance.   

Conversely, drivers between 65 and 79 tend to experience the most affordable car insurance premiums.   

Always note that exact premium prices can fluctuate due to many factors and might differ between individual insurance providers.  

Are Old or New Cars Cheaper to Insure?

Generally, old cars are cheaper to insure than new ones. Older models often have lower market values and can be less expensive to repair or replace, reducing an insurer’s potential payout in the event of a claim.   

New cars, especially those with advanced technology, can present higher premiums due to their elevated repair or replacement costs.   

What is the Average Car Insurance Premium in the UK?

According to the ABI (Association of British Insurers), the average price for comprehensive motor insurance in 2020 was £465, the lowest annual average since 2016.   

However, remember that this is an average across all age groups and various other factors; individual circumstances can cause significant variations in premium costs.  

How Do Claims Affect Car Insurance Premiums?

The ABI also highlighted that in 2020, 55,000 dishonest motor insurance claims worth £629 million were made. This showcases the significant impact of fraud on the insurance industry and, by extension, on premiums.  

While these figures provide a snapshot, remember individual premiums can be affected by many factors.

Why is my Car Insurance More Expensive than I Expected?

Many motorists are often taken aback by unexpectedly high insurance premiums each year.   

So, why might your car insurance be pricier than you anticipated?

Here are some common reasons:

How Can I Lower My Insurance?

Remember, the cheapest policy isn’t always the best, so consider the cover you’re getting for your money. If you wish to use a third-party service to find insurance brokers, you could try BIBA.  

Sources

Here is a summary of sources:  

Car Insurance Pricing Report 2023

Methodology

Data is calculated from the average of the top 5 cheapest premiums returned across price comparison websites (PCWs) and key direct providers. The Overall Market Top 5 monthly variation is averaged across all risk level variations for common risks in both months.  

Detailed Breakdown

Age Group Insights

Regional Differences

Conclusion

This report highlights a significant surge in car insurance premiums across all age groups and regions in the UK, with the north-west region experiencing the smallest rise.  

Note:

*51% of consumers could save £504.25 on their Car Insurance. The savings were calculated by comparing the cheapest price with the average of the five cheapest prices. These were quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from September 2023 data. The savings you could achieve depend on your circumstances and your chosen insurance supplier. 

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