Car insurance

Car insurance can provide you with cover if you’re involved in a car accident. It’s also a legal requirement if you own or drive a car, unless you declare the vehicle off-road (SORN) and keep it on private property. 

If you’re caught without insurance, you could be fined a minimum of £300 and given six penalty points. If you end up in court, you might be given an unlimited fine and disqualified from driving.

If your car is involved in an accident, car insurance could provide cover for:

• injuries to you or other people
• damage to your car
• damage to another vehicle
• property damage
• Car insurance could also cover you if your car is damaged by fire, attempted theft, or if it’s stolen. 

Not all policies offer the same cover, so always read the small print and make sure you’re happy with any exclusions or limitations.

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

1. Third party car insurance – this is the minimum level of cover you need to drive on UK roads. It only covers the cost of compensating other people for injury or damage you cause. It doesn’t provide you with any financial help for injury or repairs to your vehicle.
2. Third party, fire and theft – this covers the cost of damage or injury to third parties but it could also give you compensation if your car is damaged due to fire or theft or if it is stolen.
3. Comprehensive car insurance – this includes all the cover of a third party fire and theft policy, but could also protect you as a driver and may pay out for damage to your car. It could also include compensation for a number of things such as medical treatment, legal expenses and accidental damage.

A 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 Compare the Market to get the deal that’s right for you. 

You might want to look into:

• Young driver car insurance
• Over 50s car insurance
• Black box car insurance

Car insurance is always a balance between cover and price. There’s no way to choose until you see what the different options will cost you – then you can weigh up the cover you get against the cost of the premiums. 

The price you pay will depend on all kinds of things, including your age, occupation, driving experience, the car you drive and how you use your car. 

Don’t assume that a third party policy is the cheaper option simply because it offers the minimum level of cover. 

To find car insurance that suits you:

To get a car insurance quote there are a few things you’ll need to tell us about.

• Your car – either your registration number or the car’s make, model and age. You’ll definitely need the registration number to buy a policy.
• How you use your car – for pleasure and commuting, or for business purposes too.
• No claims discount (NCD) – how many years you have (you’ll need proof from your current insurance provider if you’re switching to a different one).
• Your driving history – any accidents, insurance claims and driving convictions from the past five years. Be honest, or you could invalidate your car insurance policy.
• Additional drivers – details of any additional drivers you want to add to the policy.

You'll also need to provide a few personal details: your name, how old you are, where you live and the type of job you do.

Most importantly, you should compare our cheapest car insurance quotes. But there are plenty of things that could help you save money on your car insurance:

1. Choose your car wisely. See the cheapest cars to insure.
2. Increase your voluntary excess. Find out more about car insurance excess.
3. Limit your mileage. Read about the effects of annual mileage on car insurance.
4. Build up a no claims discount. Read no claims discounts explained.
5. Consider a telematics policy – also known as black box insurance.

For more ideas, check out our top tips for cheap car insurance.

According to Compare the Market data, the average car insurance premium is currently £810^[2]. However, the price you pay will always depend on your circumstances.

And that’s just the average. When you shop around, you could find cheaper policies. That’s why it pays to compare the market. 

^[2] 51% of our customers were quoted less than £809.45 for their comprehensive car insurance in June 2024.

Paying an annual lump sum for car insurance is usually cheaper than paying monthly. A monthly payment plan could mean you pay more for your car insurance as you might be charged interest on the instalments.