Find out how to get cheaper car insurance quotes from price comparison websites, as well as how to save money on car insurance by haggling with insurance companies.
Why should I look at multiple car insurance companies?
When it comes time to renew your auto insurance, the price that is presented to you is not likely to be the most affordable option.
It has been illegal for auto and homeowner’s insurers to charge new and existing customers different rates for their policies since January 2022; however, if you shop around frequently, you should be able to find the policies with the most competitive rates.
There is a possibility that different insurers will evaluate your claims history, vehicle, and neighbourhood in different ways. Alternatively, an insurer may have temporarily reduced the price of their product in order to bring in new customers. In either case, it is to your advantage to become familiar with the policies and benefits offered by your current insurer’s competitors so that you can gauge how competitive your current insurer truly is.
The process of comparing car insurance quotes only takes a few minutes and enables you to determine whether or not the renewal offer you were given is truly the best one that is currently available. It is typically possible to transfer your no-claims discount to a different insurer, even if you have a significant amount of it.
How to compare quotes on price comparison sites
Price comparison websites are a good place to begin because they make it easy to obtain multiple quotes for auto insurance in a short amount of time.
Check the policy details once more once you have reached the website of the insurance provider. This will ensure that the insurance provider has the correct information about you and is providing an accurate quote.
Compare the Market, Confused.com, GoCompare, and MoneySuperMarket are the primary sites that offer price comparisons for various types of insurance.
What information do I need to get a quote for auto insurance?
Make sure you have the following information before visiting price comparison websites or calling insurance companies:
the number that is registered to your vehicle (or at least its make and model)
your valid driver’s licence
your driving record and claims history, including any discounts you may have received for not making claims.
an idea of the kinds of things you’ll do with your vehicle (such as work, commuting or personal use only)
your yearly mileage, which you should be able to estimate based on the information provided on your MOT certificate or by checking the status of your MOT online.
In addition to this, it is beneficial to have a general idea of how much you are currently spending on your auto insurance premiums.
Which website for comparing auto insurance policies should I use first to get a quote?
Although some comparison sites do offer reward programmes as an incentive to clients who repeatedly purchase auto insurance, loyalty is not typically rewarded in the insurance industry or on comparison shopping websites.
As a result of the fact that the panels of insurers offered by the major sites, as well as the prices offered by those insurers, can differ significantly from one another, it is in your best interest to search as many of these sites as possible for affordable auto insurance policies.
This may sound like a lot of work, but in reality, it’s not much different than running about five or six different quotes instead of just one in order to access offers from dozens of different insurance companies. It is time well spent when compared to the old days, when it was necessary to contact each insurer on an individual basis.
Does using a site that compares prices have an impact on my credit rating?
If you apply for a package that is paid for in monthly instalments, this may be the case; however, if you went to the insurer directly without using a comparison site, the outcome would be the same.
What you might find, however, is that several different insurers will conduct what are known as “soft searches” on your credit history in order to validate your identity. You will be able to find these on your credit file; however, soft searches won’t be visible to other businesses and won’t have an impact on your rating.
Can I trust price comparison site prices?
The price of auto insurance that is displayed to you on a comparison website is an actual, live quote provided by the insurance company. Having said that, take the following into consideration:
After you have been provided with the preliminary estimate, you will have the opportunity to improve the coverage you currently have by purchasing various add-ons. It is possible that the final price, which includes everything, will be higher than the price of an alternative offer that comes standard with some of these features.
Sometimes, insurers will feature versions of their policies on comparison websites that come with slightly less coverage as standard than the versions that are available on the insurer’s own website. This indicates that they are more cost effective, and as a result, they have a greater chance of standing out on a comparison website. However, this does mean that you have to check to make sure that it includes the cover that you require.
When you look into it more closely, you might find that a steep excess can account for a fantastic price. During the process of getting a quote, you have the option to change what is known as a “voluntary excess,” but the majority of insurers also include a “compulsory excess.”
Verify your presumptions before making a purchase.
When you go to the website of the insurance company, you will be asked to confirm that you agree with a number of ‘assumptions.’ This is information that is assumed to be true about you that has not been provided by you through the comparison website.
Make sure you double check this. If even a single piece of it is wrong, then the whole thing could be wrong, including your quote.
Consider the costs of any add-ons as well as the potential costs of any fees – we’ve compared the fees charged by different insurers here.
Check out auto insurance companies that aren’t featured on comparison websites.
When looking for affordable auto insurance, comparison websites are a great tool to have at your disposal because they enable you to cover a large amount of ground in a short amount of time. However, some insurance companies do not appear on all comparison websites.
The only way to purchase Direct Line insurance is directly from the company. Because they include coverage for a totaled rental car in their base package, Direct Line scored highly in our evaluation of different providers. Churchill and Privilege are both part of the Direct Line Group, but they sell their policies on different comparison websites.
NFU Mutual sell doesn’t online at all. You will need to call one of its broker centres in order to receive a quote. When we evaluate auto insurance companies, we find that NFU Mutual tends to perform well because they offer a lifetime guarantee on repairs and claim to have a “no-quibble” approach to claims.
Make use of cashback sites to obtain insurance at an even more affordable rate.
Cashback websites are yet another type of comparison website that are available. When you make a purchase of goods or financial products by clicking through from one of these sites, such as Quidco or TopCashback, you are eligible to receive a cash reward. The name of these sites gives away what the reward is: cash.
It is in your best interest to look into these while you are shopping around for deals; however, even with cashback, they may not necessarily provide you with the best deals overall value.
If you can find the same coverage elsewhere for only $150, an insurance policy that costs £300 and gives you £75 back in cash is not a good deal at all.
How much does it cost to get car insurance?
Your age, the type of vehicle you drive, where you live, and even whether or not you’ve been married in the past all play a role in determining how much you’ll pay for car insurance. Other considerations include your driving record and whether or not you have children.
There are a number of companies that monitor the pricing of auto insurance and publish trends on a consistent basis. It’s possible that the average numbers won’t match up because they were calculated using different methods and published at different times.
|Source*||Index/survey||Premium||Premium is average of|
|Association of British Insurers||Premium tracker||£429||premiums paid|
|Compare the market||Premium Drivers index||£640||cheapest prices quoted to customers|
|Confused.com||Car insurance price index||£539||cheapest prices quoted to customers|
|Money Super Market||Car insurance UK Price Index||£444||cheapest prices quoted to customers|
*Data provided by the Association of British Insurers for the period of July to September 2021; data provided by comparison sites for the period of October to December 2021
While these numbers provide an estimate of what a “average” person might pay for car insurance (or be quoted), the reality is that there is no such thing as a “average” car insurance customer.
The cost of insurance is determined individually. Because of this, depending on the specifics of your situation, you may find that your actual costs are significantly higher or lower than the estimates provided earlier.
What factors go into determining the cost of your auto insurance?
Included in the list of potential contributors to an increase in the cost of your insurance are the following:
being a more recent graduate or having a younger age (though some older drivers also pay more)
residing in a zip code that has a higher rate of both traffic accidents and criminal activity
having a car that is both more expensive and more powerful than average as well as having either a very high or very low annual mileage
a job title that is considered high risk by insurers any driving convictions and previous claims parking your car on the street rather than in a garage an accident that was your fault.
Continue reading for a discussion of several ways that you can reduce the cost of your auto insurance policy, even if you are unable to alter the perceptions that insurers have of you.
What kind of car insurance coverage is appropriate for me?
There are three different tiers available for auto insurance:
Third-party only (TP) insurance is the bare minimum required by law and only covers damage done to the property and vehicles of third parties.
Coverage for third-party liability as well as protection for your vehicle in the event that it is stolen or damaged by fire is referred to as third-party, fire and theft (TPF&T) coverage.
Coverage for third parties, fire, and theft, in addition to coverage for damage to your vehicle in the event of an accident.
Check out our rankings of the best and worst car insurance companies as well as our reviews of insurers before you make a purchase. The level of coverage offered by fully comprehensive policies can still vary greatly.
Reasons why comprehensive auto insurance might be less expensive
It is possible that drivers who are typically offered the least competitive prices (such as younger drivers) could be tempted to reduce the level of coverage they have in order to lower their premium. However, it is important to check the costs of each level of coverage, as, contrary to what one might expect, comprehensive coverage may sometimes cost less than TP or TPF&T coverage.
The reason for this is that insurance companies determine the price of policies not only based on the amount of coverage offered, but also on the total amount of money they pay out in claims for the drivers who buy their policies.
When less comprehensive policies are purchased in large numbers by drivers who have a history of filing more claims, insurers will factor this information into the pricing of those policies, making them more expensive.
If you have a large no-claims discount, your auto insurance premiums will be lower.
If you go several years without filing a claim on your auto insurance, you might be eligible for a no-claims discount (NCD) that’s higher than sixty percent.
However, just because you have a large NCD does not necessarily mean that you are getting the best deal on your insurance:
It’s possible that an NCD won’t be enough to make up for a high premium: A NCD of 30 percent on a premium of 1,000 pounds is preferable to an NCD of 50 percent on a premium of 1,500 pounds.
An NCD is not the same thing as a discount for loyalty; in most cases, it can be transferred to another insurer.
After filing a claim, the NCD protection you have won’t prevent your premium from going up.
You will be asked about the number of years you have gone without filing a claim whenever you request price quotes from new insurance providers. It is possible that you will be asked to provide evidence in support of this claim.
Keep in mind that different insurance companies have different NCD policies, and they may set different maximums for the number of claims-free years that will be recognised in your NCD.
Would you be better off not making a claim?
It may seem counterintuitive, but there are situations in which choosing not to file a claim with your insurance company and instead paying for repairs out of your own pocket could end up saving you money in the long run.
This is due to the fact that filing a claim might cause you to pay an excess, cut into your NCD, and result in an increase in your premium.
You are required to notify your insurer of any incident, regardless of whether or not you intend to file a claim, if the incident could potentially affect your premium.
Insurance rates that are more affordable for younger drivers and new drivers.
Getting auto insurance can be a pricey endeavour if you are younger than 25 years old or if you have just recently become eligible to drive.
Because of this, it is even more important for young drivers to compare their options, and you might find that the policies with the black box offer the lowest premiums.
You could receive a reward for driving more safely than the typical driver, and other policies could be beneficial to motorists who log a low number of miles each year.
Your premium can be reduced by selecting a vehicle that has lower insurance costs, by including an older driver as a named driver on your policy, or by increasing the amount of the voluntary excess you pay. However, if you choose to increase the voluntary excess, you should ensure that it is an amount that you would be able to pay even if your vehicle was damaged.
You should also think about taking additional classes like Pass Plus, which can earn you a discount from some insurance providers.
Affordable car insurance for drivers over the age of 50
The cost of your auto insurance premiums may go up when you’re in your late 60s, 70s, or 80s, despite the fact that they typically go down with age.
There are insurance companies that specifically target drivers over the age of 50; however, these policies are not always the most cost-effective choice.
We strongly suggest that you keep requesting estimates from all of the providers to evaluate how the over-50s specialists stack up against one another. Insurers catering to drivers over the age of 50 may provide additional benefits, such as extended coverage when driving in foreign countries.
Insurance discounts for drivers with low annual mileage
If you drive significantly less than the national average mileage (6,700 miles per year, according to the Department for Transport), you may be charged a higher premium for auto insurance than drivers who drive a greater number of miles annually.
Some insurance companies now offer policies that are priced according to the number of miles driven. These policies either require the use of a telematics device, also known as a “black box,” or they link directly to your vehicle’s electronic systems.
It is in your best interest to compare the estimates you are receiving from these providers with estimates you receive from more conventional auto insurers.
If you only need access to a car for a short period of time, you may want to consider getting short-term car insurance or a policy with a rolling monthly contract that can be cancelled without incurring significant fees. Both of these options are available.
Affordable coverage for the gap in new car warranties
Guaranteed asset protection, or GAP, insurance pays the difference between the amount that it cost you to purchase a new car and the amount that an insurer would pay out in the event that the car was stolen or written off.
Because new cars lose their value very quickly, your insurer may pay out thousands of pounds less than you might expect in the event of an accident involving a new car.
People who buy cars using financing can benefit tremendously from gap insurance because they will have a financial obligation equal to the vehicle’s initial purchase price.
There are a lot of people who buy gap insurance from their car dealer, but it’s highly unlikely that they’re getting the best deal possible. You need to shop around for the best price, just like you would for your primary insurance policy.
Insurance rates that are more affordable for classic vehicles
It may be difficult for owners of classic cars to obtain auto insurance from mainstream insurers because the HMRC considers a classic car to be one that is at least 15 years old and worth at least £15,000.
It is still beneficial to get quotes from comparison websites; however, it is also beneficial to get quotes from classic car insurance brokers and specialists.
It’s possible that joining an owners’ club will earn you discounts on your auto insurance premiums.
In order to assist you in selecting the appropriate insurance policy, our partner website, confused.com, provides price comparisons from more than one hundred different insurance providers.
Get a quote now.
How to negotiate a lower rate on your auto insurance
Although insurance companies are not allowed to charge you a higher premium simply because you are renewing your policy, they are permitted to find other justifications to do so. Bargaining gives you the opportunity to sway their opinion.
Be wary of fraudulent practises involving auto insurance.
If the price seems to good to be true, there’s a good chance that it is.
Be wary of the following fraudulent practises involving auto insurance:
Swindlers who pose as car insurance brokers are known as “ghost brokers,” and they thrive on social media platforms. Ghost brokers can be found everywhere. In the year 2020, an investigation conducted by Which? followed forty Instagram profiles over the course of three months. All of these profiles promoted low-cost insurance and appeared to be operated by con artists.
Ghost-brokers make the claim that they are able to secure affordable coverage for customers who are difficult to insure. However, in order to fulfil this promise, they will secretly alter the information that they have on file for their clients by, for example, changing addresses, driving histories, and adding named drivers.
Sometimes victims are given documents that have been altered to conceal the changes that have been made. When the driver makes a claim, the policy that was produced will be found to be worthless, despite the fact that it initially appeared to be valid. The typical victim is left in the red by £559 and may be subject to additional repercussions as a result of having owned a fraudulent policy long after the ghost-broker has absconded with their commission.
Theft of one’s identity
As a result of the fact that insurance cons are more likely to succeed when the policies are associated with real people, identity theft has become an essential component of the toolkit of professional insurance con artists.
Information such as names, addresses, and ages are frequently offered for sale on the internet. These details can originate from a wide variety of sources, such as data leaks from businesses or hacked emails.
Insurers can sometimes be the weak link in the chain. According to a report published by Pindrop, “voice fraud” is rampant in the insurance industry. In this stage of the scam, impostors attempt to persuade call handlers that they are real customers, typically with the goal of obtaining information about those customers or accessing their policies.
Crash for the money.
Car insurance claims that are the result of fake or deliberately staged road accidents are referred to as “crash for cash.” One example of crash for cash would be a con artist causing an accident by suddenly breaking in heavy traffic.
Recent research conducted by the Insurance Fraud Bureau examined 2.7 million claims for auto insurance that were filed between October 2019 and December 2020. It believes that 170,000 of those claims may have a connection to the suspected networks that are operating these crash for cash scams.
How to safeguard your own safety
The Financial Conduct Authority ought to be in charge of overseeing the activities of insurance brokers (FCA). The Financial Services Register contains information on every company, individual, and other organisation that is currently under the supervision of the Financial Conduct Authority (FCA).
You can also check the Motor Insurance Database maintained by the Motor Insurers’ Bureau to see if your policy is listed there. If your vehicle is not listed, then your insurance policy is not valid because it is not recorded here along with the details of every other vehicle that is insured in the UK.
In the event that you have received suspicious correspondence from an insurer, it is imperative that you inform the insurer as soon as possible using contact information that you have independently verified. It is also a good idea to keep a close eye on your credit report. By doing so, you will be able to detect any searches made by companies that you are unfamiliar with, which may be an indication that a fraudulent application has been made in your name.
Call the authorities if you have any reason to believe that you have been the target of any kind of fraud. Take pictures, doodle, and gather any documentation or other details that you think might be helpful to the investigation.