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Lloyds Bank car insurance

Lloyds Bank is well-known as a high-street bank, but it also has an insurance operation with millions of policyholders.

How good is Lloyds Bank car insurance?

Defaqto rating: 3/5 stars

Lloyds Bank car insurance is rated as three star by Defaqto, an independent financial research company which compares financial products.

Note: Not all Defaqto products with the same star ratings have the same covers and terms.

Trustpilot rating: 1.5/5 stars

TrustPilot has given Lloyds Bank Car Insurance a rating of 1.5 out of five based on over 100 reviews. Some 88% were dissatisfied but this number also includes home insurance so ratings may not fairly reflect car cover. There is no separate rating for motor insurance.

About Lloyds Bank insurance

Lloyds Bank car insurance is part of one of the UK’s largest financial groups. Besides the high street and online bank, it also includes Halifax, Scottish Widows and Bank of Scotland. 

Including cover issued under Halifax and Bank of Scotland names, the bank has some two million policyholders. 

It is contactable online and by phone. It is not available through independent insurance brokers. 

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Lloyds outsources car insurance

Lloyds Bank Car Insurance is arranged and administered by BISL Limited. This company, based in Peterborough, provides or partially provides car, van and motorcycle cover under several names including many leading banks, as well as its own brands such as Bennetts, Budget and Dial Direct.

How does that work?

BISL arranges cover on each policy through a variety of underwriters. These vary from policy to policy. Claims and other policy matters are dealt with by BISL although phone calls may be answered with 'Lloyds Bank car insurance'. 

Does Lloyds Bank car insurance offer discounts to bank customers?

Bank customers can gain a 10% discount on their first year on policies. Prospective customers should shop around, however, irrespective of their bank. 

Lloyds Bank car insurance policies

Lloyds Bank provides three types of cover:

  • Fully comprehensive

  • Third party fire & theft

  • Third party only

Lloyds Bank car insurance does not offer black box or telematics insurance.

Lloyd’s does not offer multicar discounts. Taking out a multi-car insurance policy can help reduce your insurance costs: 

  • if you own more than one car

  • if you’re a family with more than one driver

  • if you’re a couple with more than one vehicle

Lloyds Bank car insurance does not offer temporary insurance. However, other policies within the BISL group may offer short-term cover. 

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Lloyds Bank standard car insurance cover

All policies include:

  • 24-hour emergency claims helpline

  • 60 days European cover at the same level as UK cover

Comprehensive cover offers the following, as standard:

  • a three-year guarantee on approved claims repairs

  • 24-hour emergency windscreen helpline

  • new car replacement on stolen cars under one year

  • vandalism cover

  • a courtesy car when your vehicle is at an approved repairer

This is included in comprehensive policies. It pays £5,000 for you or your partner if you or your partner are accidently killed or permanently injured while getting in, travelling in or getting out of the car. The maximum is £10,000. It will not pay if seat belts are not worn.

This is covered under the comprehensive plan, but only on third party fire and theft if the breakage is the result of theft. It is excluded under the third party only policy.

Covered under comprehensive policies up to £100 following an accident, fire, theft or attempted theft.

This is not covered under standard policies or available as an additional feature.

This is not covered.

Lloyds Bank additional car insurance cover options

There are six levels of annual breakdown cover. 

  • Roadside Assistance: assistance at the roadside if you’ve broken down more than a quarter of a mile from home

  • Roadside and Recovery – offers help with getting the car and you somewhere when you are away from home

  • At Home: you get assistance if your vehicle doesn’t start and is within a quarter of a mile of your home address

  • Recovery: you get transport for you, your vehicle and up to seven passengers to your home or any other (single) UK destination, if the a prompt local repair cannot be arranged

  • Onward Travel: includes car hire, payment for public transport and even hotel accommodation if you need it to complete your journey

  • EU: covers you for travel in European countries

Up to 60 days per year driving in Europe is included as standard in all policies at the same level as the original policy.

Key cover is available for an additional premium. Comprehensive cover includes replacement locks if your keys or ignition activation device are stolen at no cost.

Legal expenses insurance may be added to policies. It covers legal costs for pursuing uninsured losses, helping defend some motoring prosecutions and a 24/7 legal helpline. Prices correct as of July 2020.

There is a 24-hour emergency helpline on 0344 209 0477.

What is Lloyds Bank car insurance best for?

  • If you want to use RAC roadside assistance

  • Travel in Europe

Lloyds Bank Car Insurance in the news

The Financial Times reported in June 2020 that Lloyds intended to extend its insurance operation.

Complaints data

The Financial Ombudsman Service received fewer than 10 car insurance complaints about Two Lloyds Bank companies (possibly just one each) in the first half of 2020. But Lloyds Bank’s provider, BISL, received 76 complaints. To put complaints in context, 67 firms had 10 or more complaints each and those totalled 4,550 complaints. Nearly 200 firms had fewer than 10 each, sharing just 479 complaints between them.

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