Car insurance

Car insurance can provide you with cover if you’re involved in a car accident. It’s also a legal requirement, so if you own and drive a car, you’ll need it – no ifs, buts or maybes about it. If you’re caught without it, then you could be fined £300 and given six penalty points. If you end up in court, then you could face an unlimited fine and even be disqualified from driving. So, the golden rule of motoring: if you own a car – insure it.

It’s there to cover the cost of injury and damage to property, people or animals if your car is involved in an accident. Whether you’ll receive compensation for damages to you and your vehicle depends on the type of car insurance policy you have. Not all policies will be the same so make sure you read the small print and are happy with any exclusions – because it’s a bit late to find out about them after the event. 

There are three types of car insurance policy to choose from:

- Third party only – this is the minimum legal requirement. It only covers the cost of compensating other people for injury or damage done by you. It doesn’t provide you with any financial help for injury or repairs to your vehicle.
- Third party, fire and theft – this covers the cost of damage or injury to third parties but it will also give you compensation if your car is damaged due to fire or theft or if it is stolen.
- Comprehensive – as the name suggests, this will cover you for third party, fire and theft as well as damage caused to your vehicle. It could also include compensation for a number of things such as: medical treatment, legal expenses and accidental damage.

It’s also worth knowing that the typical car insurance policy lasts for 12 months and will need to be renewed each year. Your insurance might automatically renew when it’s about to expire, so remember to come back to comparethemarket.com to get the deal that’s right for you.

The best car insurance for you will depend on you and your circumstances, for example, a telematics policy might be ideal if you’re a young driver; but the financial benefits decrease for older drivers. However, it’s not just important to think about how, where and what you drive, consider your budget realistically and choose your policy type carefully. You might think a third party only policy is the cheapest option but weigh up all the pros and cons – you might be surprised at which offers better value. Of course, the only way to really know what’s best, is to compare – which you can do right here (lucky you) so, comparethemarket.com for all your car insurance needs – simples. 

When you search for car insurance quotes, you’ll be asked all sorts of questions about you and your car – things like the car’s make, model and age, as well as details of your age, where you live, and the type of job you do. You’ll also be asked about how you use the car – whether or not you commute to work in it, use it for business purposes or just for pleasure. You should also know how many years of no claims discount you have (you’ll also need proof of this if you’re switching insurance provider). Be prepared to answer questions about your driving history too, and be honest about any driving convictions you have – if you don’t tell up front then you could end up invalidating your policy. 

There are ways and means of getting cheaper car insurance (without doing anything dodgy) such as: 

Choose your car wisely - not all cars are created equal and some are cheaper to insure than others.

Increase your voluntary excess - but make sure you can still afford to pay the full excess.

Invest in security - whether that's parking off-road or buying an approved alarm.

Add a named driver - adding an experienced driver to your policy could lower the cost, but don’t fall into the trap of fronting where you put a more experienced driver as the main policy holder and add another person as a named driver, when actually the named driver will be doing most of the driving. It’s illegal so don’t do it!

Avoid modifications - they’re not all bad but always think twice about giving your car a facelift.

No claims discount - keep building your NCD to get a better deal on your premium.

Telematics - if you’re a young driver consider a black box policy and it could lower your premium.

Don’t go mad on optional extras - only buy what you need, international cover might sound great but hardly worth it if you only drive to the shops and back.

Be an expert - taking extra courses such as the Pass Plus will show you’re a safe driver and it could shave some pounds off your premium depending on your insurance provider.

Compare - where else but at comparethemarket.com, we’ve got more than 100 trusted partners to choose from.

Ultimately car insurance costs are down to your unique circumstances, but the one thing that we can all be certain about – is that car insurance prices are rising. The table below shows the average price by quarter for the last year.^^

But that’s not the only way to measure whether or not you’re getting a good deal. At comparethemarket.com, we use something called the ‘insurance savings variable’. The variable is the difference between the ‘cheapest’ and the ‘average’ premium available and it can give you an idea of how much you could save. In short, the bigger the percentage, the bigger the potential savings – so make sure you do your homework and always compare prices. Have a look at our Premium Drivers report to see where we’re up to at the moment.

^^ Based on Premium Drivers report (June 2017): https://www.comparethemarket.com/car-insurance/content/premium-drivers/

If you can, buying an annual car insurance policy is cheaper than paying by monthly instalments. Paying by month just means you’ll be coughing up for extra admin charges and you might also be charged interest. Just make sure you can afford to do so. 

We aim to make it simple. From first time drivers to over 50s, from Fords to Ferraris we help find the right car insurance policy for you.

As a customer you could save up to £282***, plus if you buy car insurance through us you can get MEERKAT MOVIES which gives you 2 for 1 cinema tickets* every week for a whole year.