Comparing quotes gets you the best deal on car insurance. But before you put your details into the comparison site, it helps to know exactly what cover you are really looking for.
We’ve answered common questions about car insurance and gathered up useful information to help you decide.
The law says that you need at least third-party insurance to drive your car on the UK’s roads. Your car also needs to be insured if it is parked on the street or on your property.
There are three types of car insurance, offering different levels of cover.
Third party only (TPO) insurance is the minimum legal requirement. If you are at fault for an accident it will cover the damage you have caused to vehicles and property owned by third parties.
A third party is someone not involved in taking out the insurance policy. You and your insurer are the first and second parties.
It will also pay out for personal injury.
Third party, fire and theft (TFTP) adds theft of your vehicle and fire damage to your car to the cover offered by third-party insurance.
Comprehensive car insurance adds damage to your own car to third-party, fire and theft cover.
No. Check that they cover the things that you need to insure and that you are not paying for things that you don’t need.
If things you want, such as breakdown cover, are not included in the policy, check whether it is cheaper to add them to your insurance or to pay for them separately.
According to the Association of British Insurers, the average price paid for comprehensive car insurance in the second quarter of 2020 was £460.
Car insurance premiums largely reflect what the insurance companies have to pay out in claims.
How much you personally have to pay for car insurance will depend on how much of a risk the insurance companies think you are.
Insurers look at a number of factors to decide how much of a risk you and your car are. These include:
what car you drive
your driving experience
level of vehicle crime in your area
where the car is kept
your claims history
Never autorenew your car insurance. Always compare car insurance quotes.
Try things such as:
putting in a bigger excess
using a different (though still accurate) way of describing your occupation
seeing what difference adding more security to the car would make
seeing if parking the car in a different place overnight changes the quote
Or, if you have more than one car, look at multicar insurance.
Multicar insurance, where more than one vehicle is on the same policy, can often work out cheaper than insuring your cars separately.
Some insurers also offer multicar and bike insurance and multicar and van insurance.
Search for multi car insurance policies with Uswitch and money.co.uk*
Possibly. Some insurance companies will give discounts for passing certain advanced driving courses.
The course should be seen more as a way of improving your driving skills rather than as a way of getting cheaper insurance.
The main driver of the vehicle has to be the main driver listed on the policy. Claiming someone who is a lower risk is the main driver to get cheaper insurance is called fronting. It is illegal.
You can spread the cost of your insurance over a year but it will work out more expensive than paying in one go.
The excess is the part that you have to pay when you make an insurance claim. So if your excess is £500 and the claim is £2,000 your insurer will only pay out £1,500.
Compulsory — an amount set by the insurer
Voluntary — an amount that you choose to pay
Paying a voluntary excess can bring down the cost of your insurance. It is worth trying different excess when you compare insurance quotes.
Excess insurance can be taken out to cover the amount of the excess should you have to make a claim.
A no claims bonus – these days called a no claims discount – is a reward for not claiming on your car insurance. Each year you have not claimed will bring a discount on the next year’s premiums.
You can build up your bonus to get greater discounts. Most insurers will cap this at five years.
You can pay extra to protect the years of no claims discount that you have built up. Insurers will let you have a limited number of claims in a set period and still let you keep the bonus.
But it is likely that your premiums will increase because you have made a claim.
It depends. You need to work out how much it will cost you to protect it, how much discount your no claims bonus gives you and what bonus, if any, you would still have after a claim.
In the event that your car is written off the insurance company will value your car at how much a like-for-like replacement would cost.
If your car was new when you bought it and it is written off or stolen within 12 months, some – but not all – policies will give you the same amount as you paid for it.
If you want or need a particular value for your car you could take out agreed value insurance or consider guaranteed asset protection (GAP) insurance.
This is a good option for owners of vehicles that are hard to value, such as rare or classic cars. The car’s value is set when taking out the policy.
GAP insurance covers the difference between what you paid for the car and its market value when it was written off or stolen.
It is mainly taken out for new cars as that is when the rate of depreciation is greatest.
You don’t have to accept the initial offer. Gather evidence of what similar cars have sold for.
There is also the option of the Financial Ombudsman Service. This is a free service that settles disputes between consumers and businesses.
Modifications need to be declared when you take out your insurance. They fall into two categories:
Generally, modifications make insurance more expensive, unless you are adding something like parking sensors.
Standard car insurance policies cover what is called social, domestic and pleasure, so not work. If you drive to a single place of work, or to the station every day to get the train to work, that is commuting and needs additional insurance cover.
if you use your car at work, for example driving to clients or even just visiting different offices, you will need business car insurance. You will need to tell your insurer what you do and how you use your car.
If you have a company car, business use is likely to be included in the insurance.
Insurers consider some occupations riskier than others based on the history of claims that they have received, so construction workers will likely pay more than PAs.
Drivers aged between 17 and 24 are three times more likely than drivers from any other age group to injure somebody in a car accident.
Young drivers also tend to have young passengers. If a young person is seriously injured and needs life-time care they will need it for longer than an older person, which will cost insurers more.
There are a number of ways to reduce the cost of insurance for younger drivers, including:
Policies that use black boxes to track the driver’s speed and driving style can be a good option for younger drivers.
Adding a parent or other older driver to the policy can bring down the cost of insurance for younger drivers.
Those learning to drive can be insured in a number of ways:
Even if you don’t intend to go through your insurance company to claim, you have to let them know if you have an accident or any damage is done to your car.
You will keep your no claims bonus as you haven’t claimed, but as you have had an accident it is likely to affect your premium.
If your car is at an approved repair place you may get a courtesy car. These tend to be small cars with adverts for the repair place plastered all over them.
If you need a bigger car, consider taking out hire car insurance as part of your policy or find an insurer that will guarantee a similar-sized vehicle.
If you have comprehensive car insurance and are involved in an accident your insurer may decide to pay your insured losses and not go through the other party’s insurer. The insurer for the other party does the same thing.
Currently, during the Brexit transition period, UK car insurance automatically gives third-party insurance for travel to the EU for short periods. Travel to non-EU countries may require extra insurance and a green card.
A green card is a document that proves you have the necessary car insurance for the country you are visiting. It was traditionally printed on green card.
Comprehensive insurance may mean that you have third-party insurance when you drive a different vehicle. You will need to check your policy.
If your policy does not cover you, temporary car insurance could be what you are looking for or you could be added as a named driver to someone else’s policy.
Temporary car insurance lets you get cover for a short time, if that’s all you need. You pick how long you need the insurance for. Most insurers do temporary insurance for up to a month. Some do up to three months.
This may well work out a better deal than being added as a named driver on someone else’s insurance.
Compare a range of short-term insurance policies with Uswitch and money.co.uk*
Insurers will let you add people who drive the vehicle occasionally as named drivers.
Yes, changing details such as your occupation or address is known as a mid-term adjustment. Insurers are allowed to charge a reasonable amount for administrative changes.
Depending on what you change, it may also affect the cost of your policy.
Getting points on your licence isn’t going to be looked on favourably and your premium is likely to rise.
Common reasons for claims being rejected are:
incorrect information on the policy
no proof of the accident
This is a central record of all insured vehicles in the UK. It is held by the Motor Insurers Bureau (MIB) and flags up vehicles registered with the DVLA that do not have insurance.
It is how the police and the DVLA know that your vehicle does not have insurance.
If you are caught driving without insurance the police can give you six points and a £300 fine. If the case goes to court the fine can be unlimited and you may also get disqualified from driving.
The police can also seize, and in some cases destroy, a vehicle that is being driven uninsured.
No, but you will need to make a Statutory Off Road Notification – known as a SORN – otherwise you will fall foul of the need for continuous insurance.
This is the legal requirement for vehicles to always be insured. It was brought in to stop people falsely claiming that their vehicle wasn’t insured because they weren’t using it.
The MIB regularly checks its database of insured vehicles against the DVLA’s records. If a car is thought not to have insurance the registered keeper will initially be sent an insurance advisory letter.
If matters are not resolved you risk:
a £100 fixed penalty
a fine of up to £1,000 if the case goes to court
having your vehicle clamped, seized or destroyed