At a time when cover is almost 30 per cent more expensive than last year, getting a cheap car insurance quote – or, at the very least, the best deal for your profile – is an absolute necessity.
Fortunately, we can help you do just that. By using our comparison tool, you can see how more than 160 car insurance providers stack up against one another, and find the right cover for your needs.
If you’re not ready to get a quote just yet, however, read our extensive guide below for more help. We’ll let you know what to look for when comparing car insurance, how you can make your premium cheaper, and what exactly drives the cost of your coverage.
How do I get a car insurance quote from an Independent Advisor?
It doesn’t take long to compare car insurance quotes with us – and it’s even quicker if you make sure you have everything you need ahead of time:
- Find the details of your car: at the very least you’ll need to have your registration number (ie, your number plate). It’s a good idea to have the make and model, its age, and a list of any modifications you’ve made. You’ll also need your details, and those of any named drivers, including medical conditions.
- Collate your driving history and car usage: this not only includes your driving licence number, but things like how long you’ve had it and what type of licence it is. You’ll also need information about your car usage, such as how many miles you drive in a year, and where you park at night.
- Compare car insurance: once you have put in the relevant information, you can use our tool to compare car insurance premiums. Make sure to not only consider price, but also the level of coverage you need, and any additional extras you may want to add on.
Why compare car insurance with us?
With Independent Advisor, you can get a car insurance quote from a source you can trust.
Save money
By comparing car insurance with us, you can potentially save up to £523 on your annual premium.
Tailored quotes in minutes
It only takes a few minutes to get a tailored car insurance quote using our comparison tool.
Compare quotes with confidence
Our guides equip you with everything you need to know about comparing car insurance so that by the time you pick your provider, you’ll have full confidence that you’re making the right decision.
What to look for when you compare car insurance
Fully comprehensive is the best level of car insurance coverage (Adobe)
When comparing car insurance quotes with us, it’s important to look at:
Level of cover: This will determine what you can claim for, and sometimes for how much. You’ll normally be picking between third party, third party, fire and theft, and comprehensive car insurance. Third-party is the legal minimum, while comprehensive will provide you with the greatest level of cover.
Monthly or annual cost: This is known as your premium. Premiums are calculated annually. You can normally choose to pay monthly, but this will usually cost more than if you pay upfront.
Total excess: This is the amount you’ll need to pay towards any claim. There will be a compulsory excess, but adding a voluntary excess can lower your premium.
Personal accident cover: This provides you or your family with financial support up to a certain level if you’re injured or die in an accident. Often third party, and third party, fire and theft, policies won’t include personal accident cover as standard.
Optional extras: This includes benefits such as breakdown cover, car keys cover, whether you will be provided with courtesy car cover if your vehicle is in an accident and if you can drive abroad using your policy. The more optional extras you add on, the more your insurance will cost.
In 2022, nearly 34 per cent of stand-alone breakdown cover policies had a claim made on them, compared to just 12 per cent of add-on policies. (Source: Financial Conduct Authority)
What type of car insurance do I need?
There are three levels of car insurance in the UK:
The following table shows what each covers:
| Third-party | Third-party, fire and theft | Fully comprehensive | |
|---|---|---|---|
| Injuries to other people | ✅ | ✅ | ✅ |
| Damage to other people’s cars | ✅ | ✅ | ✅ |
| Damage to other people’s property | ✅ | ✅ | ✅ |
| Theft | ❌ | ✅ | ✅ |
| Your car is damaged/destroyed by fire | ❌ | ✅ | ✅ |
| Vandalism | ❌ | ❌ | ✅ |
| Repairing damage to your car | ❌ | ❌ | ✅ |
| Your medical expenses | ❌ | ❌ | ✅ |
| Damage due to flooding | ❌ | ❌ | ✅ |
In theory, a third-party policy should be the cheapest car insurance as it only offers the minimum level of cover, but in reality, fully comprehensive cover is often the best value for money, while also offering the most coverage.
How much does car insurance cost?
According to the most recent data from the Association of British Insurers (ABI), the average premium for private comprehensive motor insurance stood at £561 in Q3 2023, up 29 per cent year-on-year and up from £511 in Q2. That’s the highest figure since the ABI started collecting these averages back in 2012.
However, the cost of car insurance can vary considerably based on your specific circumstances; young drivers tend to pay much more than older drivers, for example, due to their lack of driving experience. So any average figures should be taken with a pinch of salt.
How much money can I save by comparing car insurance quotes?
There are about 200 car insurance companies in the UK, each offering a range of policies. Therefore it’s important to shop around, not only to get the right cover for your needs, but to do so at the best price available.
You can potentially save up to £523 a year on your premium by using our car insurance comparison tool.
Why has the price of car insurance gone up?
With the latest ABI data showing a 29 per cent jump in the average car insurance premium year-on-year, you might be wondering why the price of car insurance has become so expensive.
The main problem is inflation, and the related rise in energy costs, pushing prices up for insurers.
For example, the price of paint has risen 16 per cent in the past 12 months, the cost of spare parts is up 11 per cent and labour costs have jumped 15 per cent. Costs related to energy, meanwhile, have surged 46 per cent.
All of this pushes up the price a provider pays when you make a car insurance claim. So much so that providers handed out a record £2.54 billion in motor claims in Q3 2023. The provider then passes some of these costs onto customers, often regardless of their personal driving history.
On top of that, there’s also the insurance premium tax, which makes up 12 per cent of every premium. The ABI is currently lobbying for the tax – which now averages nearly £100 a year across car and home insurance policies – to be reduced to manage the jump in other costs.
Because of all this, now, more than ever, it is a good idea to use a price comparison website to find the cheapest car insurance you are eligible for.
What affects the cost of my car insurance quote?
Since premiums are at record highs, it’s a really good idea to get to grips with what exactly affects the cost of your car insurance quote. This knowledge will help you know which factors can’t be helped, and which you might be able to change to get a better deal.
Car value: One of the factors used to calculate your car insurance premium is the value of your car. The insurer or price comparison website will ask for a figure. If you just bought your car, this might be the amount you paid for it. If you’ve had your car for a while, you can get an estimated value by using the car valuation tools on AutoTrader or Parkers.
Car type: All cars fall into an insurance group from one to 50 – the more powerful and luxurious your car, the higher the group it will be in and the more you’ll pay. Cars such as the Vauxhall Corsa, Volkswagen Panda or Nissan Micra are in Group One, while a Jaguar XE or BMW i8 will be in Group 50.
Excess: The ‘excess’ on a car insurance policy is the amount the policyholder pays in the event of a claim – then the insurer pays the rest. For example, if you claim £1,000 worth of damage and the excess on your policy is £250, the insurer will pay £750.
The excess should be refunded if you’re found not to be at fault – your insurer will claim it back from the at-fault driver’s insurance. There are two elements to car insurance excess: the compulsory excess set by the insurer, and the voluntary excess you choose to pay.
(Independent Advisor)
For example, if your compulsory excess is £150 and you choose a voluntary excess of £300, your total excess is £450 and you’ll pay a total of £450 towards the cost of a claim. A higher total excess will reduce the price of your car insurance premium.
This is because you are less likely to make a claim, as it will be cheaper to sort out lower-value repairs yourself. However, it’s important to be sure that you can afford to pay the higher excess in the event of a claim should you need to.
Mileage: You’ll need to state your estimated annual mileage when you buy car insurance. This figure will be on your MOT certificate. Low mileage means fewer chances of an accident, and, in turn, lower premiums.
Multi-car discounts: Most car insurers offer discounts if you insure more than one vehicle with them. Don’t assume these policies will be cheaper though – compare car insurance quotes for multi-car policies with single-car policies.
No-claims bonus: Building up a no-claims bonus will help to reduce your car insurance premium. If you decide to switch providers, this can often be carried across to a new policy.
Address: Where you live will also affect your car insurance premium – if you live in a high-crime area, you’ll pay more.
Parking: Where you park your car during the day/night matters too. You’ll attract lower premiums if you can keep your car in a garage or a private car park, than if you leave it parked on a public road.
Gender: Statistically, women are safer drivers than men, but since 2012 it’s been illegal for providers to offer women cheaper car insurance premiums based solely on their gender. However, it’s still acceptable for insurers to base premiums on marital status – with those married or cohabiting seen as lower risk than single people.
Age: Depending on how you drive, insurance premiums generally fall with age. Young drivers pay more due to their lack of driving experience and because, statistically, they are more likely to have an accident.
Under-25s have seen their premiums jump by nearly 67 per cent for the 12 months to August 2023, compared to a rise of 56 per cent for the over-50s. (Source: Consumer Intelligence)
How can I get a cheap car insurance quote?
Parents can lower a child’s premium by becoming a named driver on their insurance (Adobe)
While the price of car insurance may be rising, there are some ways you can try and get the best car insurance deals available:
Pay upfront: If you can afford it, it’s best to pay your premium upfront each year. Your insurer may offer the option to pay monthly, but this will cost extra as, in effect, you are borrowing money for the whole premium and paying it back with interest.
Don’t leave buying car insurance until the last minute: Your current insurer will send you a renewal quote about a month before your policy is due to end, but the best day to buy car insurance is 15 to 29 days before your renewal is due. The closer you get to your renewal date, the more your premium will cost.
Don’t ‘auto-renew’: Don’t immediately accept the auto-renewal quote from your existing provider. Instead, shop around for cover or call to negotiate a cheaper price with your current insurer.
Build your no-claims bonus: Every year you don’t make a car insurance claim, you will be building up a no-claims bonus that can reduce the price of your premium. Over time, this discount could range anywhere from 30 to 60 per cent.
Pay for repairs if you can: If you cause minor damage (for instance, dent a wing or damage your bumper), pay for repairs yourself. There’s little point in making a claim where the value is less than the excess on your policy and you can keep your no-claims bonus intact.
Add an older driver: Young drivers can reduce their car insurance premiums by adding an older driver (for example, a parent) as a named driver. But it’s important to be honest about who the ‘main driver’ is – lying to get cheaper premiums is known as ‘fronting’ and is illegal.
Be selective with your optional extras: Make sure you only purchase the optional extras you need. Otherwise, you may end up over-insuring yourself and paying for policies you won’t use.
Only 1.32 per cent of add-on key cover policies had claims made on them in 2022, with the average claim worth £314.98. (Source: Financial Conduct Authority)
Make the right modifications: Insurers don’t like modifications, such as go-faster stripes and tinted windows – these changes to your car will mean higher premiums – but installing security devices, such as an immobiliser, tracker or dashcam, can reduce your premium.
Consider ‘black box insurance’: With a telematics car insurance policy, your insurer will fit a black box or telematics device in your car that will monitor your driving habits and feed this information back to your insurer. Drive well and you’ll get cheaper cover.
Shop around, and use the right browser extensions: Price comparison websites often offer vouchers or gifts when you buy car insurance and these deals change all the time. You may also be able to get cashback on top by using TopCashback or Quidco, or a discount from your home insurer.
What optional extras can I add to my car insurance policy?
If you feel like you need a bit of extra cover outside of what is offered by your policy, you can look into an insurer’s optional extras.
| Optional extras | Description |
|---|---|
| Breakdown cover | Provides you with roadside assistance if your car breaks down. Levels of cover will vary between insurers and can include anything from vehicle recovery to onward travel cover. |
| Car keys cover | This covers the costs of replacing and reprogramming lost or stolen car keys. |
| Courtesy car | Courtesy car insurance will see your insurer provide you with a car to drive if your car is being repaired following an accident. |
| Driving abroad | Provides cover for driving your car in countries outside of the UK. |
| Electric car insurance | Some insurers sell specialist electric car insurance. These policies cover things like damage to the car’s battery and cover for portable charging cables. |
| Legal expenses | Offers financial protection against legal fees if you’re involved in an accident that’s not your fault. This may include personal injury, excess recovery and loss of earnings. |
| Misfuelling cover | This covers the cost of draining and cleaning your tank, or the cost of repairs if you put the wrong fuel in your car. |
| No-claims discount protection | An optional cover which protects your no-claims discount (NCD) from one (or more) ‘at fault’ claim each year. |
| Personal belongings | Provides cover for lost, stolen or damaged personal belongings left in the car. |
| Windscreen cover | Covers damages to your car’s windscreen, including repairing chips and cracks as well as full replacements. |
Specialist car insurance policies
Although car insurance tends to be split into third party, third party, fire and theft, and fully comprehensive, there are several other specialist policies you may need to take out at one time or another. These can include:
- Learner driver insurance: If you’re learning to drive, you can take out specialist learner driver cover to allow you to practise in someone else’s vehicle
- Telematics insurance: By having an electronic device installed in your car through a black box or telematics insurance policy, you can save yourself money in the long run by proving you’re a safe, trustworthy driver
- Temporary car insurance: If you need to drive someone’s car for a short amount of time, you can take out temporary car insurance rather than unnecessarily apply for a full, 12-month policy
- Classic car insurance: Although the age of a classic car can vary from insurer to insurer, there are benefits to taking out a specialist classic car insurance policy for your vintage vehicle
- Business car insurance: If you use your car for business purposes, such as driving around to various places to work or meet clients, you will need to get business car insurance to be properly covered. This comes in three categories: Class 1, 2 and 3
- Low-mileage car insurance: If you drive under the average UK annual mileage, say if you’re retired or have started working from home, you could get cheaper car insurance by taking out a low-mileage policy
- Named driver insurance: As the main driver, you could make your car insurance cheaper by adding a more experienced named driver to your policy. Alternatively, becoming a named driver may save you money if you don’t drive very often, and only semi-frequently need to use a loved one’s car
FREQUENTLY ASKED QUESTIONS ABOUT CAR INSURANCE: UK TOPICS
