Top Gear for Your Wallet: The Best Car Insurance Providers in 2025
Letting your car insurance auto-renew isn’t always the most cost-effective choice, so it’s often beneficial to review your options as your renewal date approaches. Our guide highlights some of the highest-rated insurance providers.
Although the cost of motor insurance has recently decreased, it is still £50 more expensive than the previous year, according to the Association of British Insurers (ABI). Despite the rise in costs, payouts have also increased, with insurers spending £2.9 billion more on claims compared to the same period last year.
Mervyn Skeet, Director of General Insurance Policy at ABI, stated: “The industry continues to encounter significant cost pressures, and the price of coverage remains a financial burden for many households. We are committed to doing everything we can to assist motorists.”
If you’re in the market for a new motor insurance policy, capitalize on the competition by considering your alternatives. You can use our comparison tool to get personalized quotes, or if you’re simply seeking the top providers offering the most comprehensive coverage, we’ve listed them below.
We also delve into:
How much is car insurance on average?
How do car insurance companies calculate quotes?
Is car insurance worth it?
What happens if you don’t insure your car
Read more: The best travel insurance providers
The top car insurance providers
With numerous companies providing car insurance, it’s crucial to find a provider that is reliable and trustworthy.
Below, we present our summary of the top providers that were nominated for the “Best Car Insurer” award at the Times Money Mentor awards 2024.
Winner of the Best Car Insurance Provider for 2024
Key Features:
- Specialized insurance for individuals over 50
- Offers three-year fixed-price coverage
- Includes coverage for driving in the EU
A major highlight of Saga’s insurance offering, and a key factor in its win for Best Car Insurance Provider at the Times Money Mentor 2024 Awards, is its three-year price fix guarantee. This feature, part of Saga Plus, ensures that your car insurance premium remains unchanged for three years, provided there are no changes in personal circumstances.
In an era where car insurance costs have been increasing, this benefit can be particularly advantageous. However, it’s important to note that this feature is exclusively available to Saga Plus customers, who opt for the insurer’s premium policy.
Saga Plus also provides additional benefits such as up to £1 million in private medical treatment for policyholders or their spouses if injured in a road accident, onward taxi travel in case of vehicle damage, and key protection services.
Additionally, Saga Plus includes a protected No Claims Discount (NCD), allowing policyholders to make up to two fault claims within a three-year period without affecting their NCD accumulation.
Key Features:
- Provides compensation if your vehicle is in an accident with an uninsured driver.
- Offers insurance to drive other vehicles, subject to specific eligibility criteria.
- Covers serious injury or death resulting from a road accident.
Aviva was shortlisted for the 2024 Times Money Mentor Awards, thanks to its outstanding customer service. Given its size, the company receives relatively few complaints referred to the Financial Ombudsman Service and boasts a 4.5-star rating out of 5 on Trustpilot.
Although its features are similar to those of other providers, Aviva could be a solid choice if excellent customer service from a reputable brand is your primary concern.
Key Features:
- Offers several standard features that are often optional with other providers, such as key protection and misfuelling cover.
- Provides extensive coverage in Europe for up to three days.
- Offers 24/7 customer support.
Autosan has earned a five-star rating from Defaqto, our data provider, largely due to the comprehensive coverage it offers. In addition to standard features like key protection, misfuelling cover, child car seat cover, personal belongings cover, and windscreen cover, Autosan gives policyholders the option to enhance their policy with extras such as excess protection and breakdown cover.
Key Features:
- An option for luxury and high-performance vehicles.
- Offers up to 25% additional payout (capped at £100,000) over the Agreed Value to restore the vehicle to its pre-accident condition.
- Includes GAP insurance as standard.
Most insurers consider a vehicle a total loss if repair costs reach 60% or more of its value. However, Chubb offers coverage up to 125% of the vehicle’s worth (up to £100,000). This makes Chubb a specialized insurer focused on high-end vehicles, including high-performance cars and classics, catering to a niche market.
Key Features:
- Designed for high-value vehicles (valued at a minimum of £75,000).
- Drivers must be at least 40 years old.
Hiscox’s car insurance is exclusive, catering only to a specific group of customers. Coverage begins for vehicles worth £75,000 and extends up to an impressive £15 million. By focusing on this niche market, Hiscox offers a personalized and tailored level of customer service that is rarely found with other insurers.
Honourable mentions
Although these car insurance providers didn’t quite qualify for our awards shortlist, they still offer good value for money.
Key Features:
- Includes coverage for trips to Europe.
- Recognized as a Which? Recommended Provider for 10 consecutive years.
- Enjoy a 5% discount when purchasing car insurance online (add-ons not included).
LV= has consistently received five-star ratings or higher from Defaqto for the past 20 years, making it an insurer that offers both affordability and extensive coverage.
For additional protection, you can enhance your policy with optional extras such as breakdown cover for an additional £26 per year, motor legal expenses cover for £25.99 annually, and guaranteed hire car coverage for £19.90 per year if your vehicle is unavailable.
If you’re in the market for home insurance, consider bundling it with your LV= car insurance to enjoy reduced premiums.
Key Features:
- Personal injury cover up to £10,000.
- 180 days of European coverage per year.
- A courtesy car is provided standard while your vehicle is being repaired.
John Lewis was awarded “Best Car Insurer” at last year’s Times Money Mentor awards, with one judge praising it as “consistently one of the best performers in service and offering a strong product.”
For those needing to make a claim, John Lewis provides a straightforward process with 24/7 access to its call center. Additionally, it offers breakdown insurance through the RAC and the option to protect your no-claims discount as an add-on feature.
Key Features:
- If your car is less than two years old and is stolen or written off, NFU Mutual will replace it.
- Includes coverage for driving in Europe.
- Breakdown insurance is provided as standard.
NFU Mutual was a runner-up in last year’s Times Money Mentor Awards, with one of our judges describing it as a “quality operator.”
As a mutual insurer, NFU Mutual operates differently from its competitors. It rewards loyal customers with a savings bonus upon policy renewal and does not charge administration fees for policy adjustments. Additionally, its annual and monthly premiums are equivalent, meaning there are no extra charges if you prefer to pay in manageable installments.
Key Features of Comprehensive Cover:
- All comprehensive policies provide a courtesy car.
- Offers up to £5,000 personal injury cover with comprehensive coverage.
- Includes windscreen cover for comprehensive plans (not available on the Essential Tier).
Additional features:
- Personal Belongings cover of up to £200 for Admiral plans and £300 for Gold and Platinum tiers.
- Provides up to 90 days of European cover on all policies, excluding the Essential Tier.
Key Features:
- Option to choose between a vehicle replacement or cash payout if your car is written off.
- 24-hour helpline support.
- Up to £10,000 coverage for personal accident protection.
Churchill is a versatile provider that caters to drivers of all types. For younger drivers, it offers telematics policies to help reduce premiums, while it provides specialized coverage tailored for drivers over 50.
In addition, Churchill offers a range of optional extras to customize your policy, such as no claims discount protection, breakdown cover, and motor legal expense coverage.
Key Features:
- Personal injury cover up to £10,000.
- A dedicated personal claims manager is assigned to you, rather than contacting a general helpline.
- Up to 90 days of coverage for driving in countries such as Germany, France, and Spain.
Marks & Spencer offers two levels of car insurance coverage: Standard and Premier.
The Standard option includes uninsured driver protection, £200 coverage for personal belongings, and child seat cover, among other benefits. This represents the basic level of protection. The Premier level builds on this by adding extra features, such as European and UK breakdown cover, as well as access to a guaranteed replacement vehicle if your car is stolen, damaged by fire, or involved in an accident.
ALA Insurance stands out from other providers on this list by specializing in highly-regarded GAP insurance. This coverage bridges the gap between the original purchase price of a new car and the amount your insurer pays out in the event of a total loss claim.
A key feature of ALA Insurance is its best price guarantee. If you find another online provider offering a cheaper, equivalent GAP insurance quote, ALA will match or improve upon that price.
The company provides policies for a variety of vehicles, including new, used, lease, and pre-registered cars.
How much is car insurance in the UK on average?
According to the ABI, the average annual car insurance premium in the UK is £612. This figure has risen due to increasing claim costs within the industry. EY, an accounting firm, reported that in 2023, for every pound collected in motor insurance premiums, the industry spent £1.13 on claims and expenses.
It’s important to note that this is a national average, and your individual quote may vary significantly. Factors like location and age heavily influence your premium. For instance, a study by Quotezone, a comparison site, revealed that drivers aged 18 to 24 in London face average premiums exceeding £2,800. In contrast, drivers in the same age group in Northern Ireland are quoted less than half that amount.
The ABI also highlighted that a driver’s age affects the likelihood and cost of claims. Younger, less experienced drivers generally face higher premiums, while those aged between 66 and 70 tend to pay the lowest premiums.
How do insurance companies calculate quotes?
Omaid Qaiser, an expert at Cuvva, explained that the temporary car insurance provider considers numerous factors when setting its policies. These include the applicant’s age, length of time they’ve held their license, and the type of vehicle being insured.
“Although age can offer initial insights, we rely on a combination of data to customize pricing based on an individual’s unique risk profile,” he stated.
Greg Wilson, CEO of Quotezone, shared a similar perspective. He noted that car insurance providers use varying pricing strategies to calculate quotes, with most placing significant emphasis on factors such as location, age, driving history (including claims and penalty points), and the value of the car.
“Drivers may not be able to alter these specific variables, but there are other factors that can influence costs,” he added.
He suggested ways to reduce premiums, such as limiting annual mileage and investing in additional safety features for the vehicle. He also highlighted that moving a car to a private driveway could save some drivers up to £140 per year.
Find personalised car insurance quotes
Using Quotezone, you only need to enter your details once, and the platform will automatically share your information with over 100 UK insurance providers. Within moments, you can view personalized quotes in real time directly on your screen.
Avoid spending unnecessary time on multiple forms, and you could save up to £530 by utilizing Quotezone’s comparison tool*.
Is car insurance worth it?
If you intend to drive in the UK, having car insurance is a legal requirement. According to the government website, third-party insurance is the minimum coverage needed. This type of policy only covers damages caused to others, their vehicles, or their property.
If you want a policy that also covers repairs to your own vehicle, it’s advisable to opt for comprehensive cover. Comprehensive policies provide protection for damages to both third parties and your own car, as well as coverage for fire and theft in the event of an accident.
Additionally, Wilson noted that there is often little difference in cost between third-party and comprehensive cover.
“So, if possible, it’s best to protect your finances by choosing comprehensive coverage,” he advised.
Is my car insured?
One of the simplest ways to verify if your car is insured is by using the Motor Insurance Database. On their website, which contains a register of all UK vehicles, enter your registration number in the search bar, and it will indicate whether your vehicle is insured.
However, the database does not provide details about the insurance provider. To find this information, you’ll need to conduct your own search. A good first step is to review your emails for any correspondence from your insurer.
What happens if I don’t insure my car?
As noted, car insurance is mandatory in the UK, and driving without it can lead to consequences. When you insure your vehicle, your insurance company will add your details to the Motor Insurers’ Bureau database. If it’s discovered that your car is uninsured, you’ll receive a letter warning you to obtain the necessary coverage.
If you ignore this warning, you may receive a fixed penalty notice requiring you to pay a £100 fine. Further non-compliance could result in an additional £1,000 fine, legal action, vehicle seizure, impoundment, or even destruction of your car.
Moreover, the police use automated number plate recognition systems to cross-check with the Motor Insurance Bureau’s database. If you’re caught driving uninsured on the roads, you could also face fines as a result.
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