Best car insurance companies in the UK 2025

The main three types of cover are third party, third party fire and theft, and comprehensive.

Third party is the most basic level and is the legal minimum. It covers damage you cause to other drivers on the road, but not damage to your own vehicle.

Third party, fire and theft is the next band up. It also pays out if your car is stolen, vandalised or severely damaged. 

Comprehensive car insurance offers the widest coverage for you and your car. It will cover you, your car, the other driver and their car in an accident.

Within these categories there are specialist types of policy including classic car, multi-car and learner driver car insurance. 

From haggling with your provider to using comparison sites, there are many ways to find cheap car insurance. Shop around and do your research to understand what a competitive price looks like before making a decision. 

Insurance companies are no longer allowed to offer better deals to new customers, so it is in your best interest to find out what your current provider is willing to offer as well as checking out the best deals on price comparison sites. 

To see the full range of policies available, you'll need to work a bit harder than running quotes on comparison websites. Some insurers don't make all their policies available through them, while others - such as NFU Mutual - aren't online at all and only do business over the phone.

• Find out more: 7 surprising details that could lower your car insurance premiums

From January to March 2025, the average annual premium paid by drivers was £589, according to the Association of British Insurers - equating to £49 a month.

Your excess, car model type and your age can increase your premiums. 

Bear in mind that spreading payments monthly, rather than paying for a year in one go, can cost you more. We've seen cases of insurers charging over 30% interest - similar to a bank overdraft.

One solution is to pay annually using an interest-free purchase credit card, which you then pay off over 12 months.

An excess is the amount you pay towards any claim you make on your car insurance policy. For example, if you have a claim worth £500, and a £100 excess, you'll only receive £400 from your insurer.

Most car insurers have two types of excess: a compulsory excess, which can't be modified; and a voluntary excess, which you can set yourself.

Set your voluntary excess carefully. Your insurer will offer you a lower premium if you opt for a higher excess, but you'll be committing to paying more if you claim. Where damage to your car has been minor, a high excess can mean it's not worth claiming at all.

The simplest way to find out if your car is insured is to use the Motor Insurance Bureau, which is a national register of all cars insured in the UK.

Enter your vehicle's registration number, confirm ownership, and receive a quick response indicating your insurance status. Keep in mind that updates could take some time if you have recently purchased insurance coverage.

Beware of potential scam callers claiming to be from the Motor Insurance Bureau (MIB) and avoid sharing personal information over the phone.

Yes. Your car insurer will automatically provide third-party cover (the legally required minimum) if you're driving in the European Economic Area.

However, you may need a green card to prove that you have valid cover, depending on the country you're driving in. At the time of writing, you don't need a green card to prove your insurance cover if driving in the EU (including Ireland), Andorra, Bosnia and Herzegovina, Iceland, Liechtenstein, Montenegro, Norway, Serbia and Switzerland.

You can find out which countries you need a green card to drive in on gov.uk.

It's recommended that you contact your insurer about a month ahead of travel to ensure the green card reaches you in time.

If you don't have a green card in a country where one is required, you'll have to buy insurance locally. This may be more expensive than UK cover.

Yes, accumulating three points on your driving licence can significantly increase your car insurance premiums. 

Insurance companies typically see penalty points as signs of risky driving behaviour, which increases the likelihood of future claims, so they adjust premiums accordingly to reflect this increased risk.

If your insurance quotes are high due to penalty points, you could consider comparing insurance quotes, exploring policy options like black box cover, or negotiating with insurers to potentially help bring the quotes down. 

• Find out more: Millions have points on their driving licence — what it means for car insurance 

Yes. It's standard for your agreement to auto-renew after 12 months - however, we would suggest that you don't let your car insurance policy auto-renew, as you could be losing hundreds by not shopping around. 

When it comes to auto-renewal, your provider will let you know between 21 and 30 days prior that your policy is up for renewal, and if you take no action it will auto-renew with the same details including excess, no-claims bonus, add-ons, fees and charges. 

Some policies have a 10-month option, so check your agreement to see how many months until your auto-renew kicks in.

Don't just renew - your existing insurer may not be the cheapest option, especially if you haven't switched for a while.

Start with price comparison sites but bear in mind not all insurers or policies are on them. Also make sure the price comparison site is listing your details (such as profession) correctly.

If you've got a complicated claims history you could use a broker to find cover, through the British Insurance Brokers Association. Watch out for fraudulent 'ghost brokers', particularly on social media; these claim to offer cut price cover but leave you with little or no insurance.

• Black box: consider black box insurance, which adjusts premiums based on driving habits. Opt for a car with a small engine, avoid modifications, and drive less to reduce risk. Adding an experienced driver might help, but don't 'front' (adding another driver as the main driver when you really do most of the driving) as this is against the law. Compare quotes and consider raising the excess. While black box insurance offers fair pricing, make sure you understand the rules and penalties for bad driving - how black box car insurance works.

• Learner driver insurance: you could consider learner driver insurance if you're practicing in your own or someone else's car to help cut costs. Choose between a dedicated learner driver policy or being added as a named driver. Compare quotes, opt for insurers with restrictions, increase voluntary excess, and consider comprehensive coverage as it might be cheaper. Temporary learner driver insurance is available for shorter practice periods. Additionally, shop around, as rates vary widely among insurers - see our guide on learner driver insurance.

Younger drivers could also benefit from multi-car insurance.

Your 50s and 60s should be among your cheapest years for car insurance, as long as you choose the right policy. 

However, as you age, expenses may start to rise, and some insurers could refuse to provide coverage altogether.

Whilst specialist over-50s policies exist for older drivers, they may still find that standard insurers are cheaper. Make the most of your no-claims discount, which can be eroded by rising premiums, and if switching, check your new insurer will recognise it.

• Find out more: Best car insurance for the over-50s 

Yes. Your policy can be transferred to your new car even if you are midway through your 12-month policy. Once the transfer is complete, your new car will be covered in the same way as your previous model. 

Some providers will charge an admin fee to change your details. These changes should include your car make, model and mileage. Your new car could have an impact on your insurance premiums.

Your provider will need to know the date to switch over the policies. The best time to contact it is once you know when you are collecting your new car from the dealership or seller. This way, you can collect your car and drive it home that day with your new insurance applied. 

If you're added to another driver's policy – listed as a 'named driver' – then you will be covered to drive their car up to that policy's level of cover. 

Your policy may also have some cover for driving cars (known as 'driving other cars' cover or 'DOC') even where you aren't named on the owner's policy. 

However, DOC cover usually only provides third-party cover and, in many policies, only applies if you're making use of the car in an emergency situation. 

No. Without car insurance, you can't legally transfer ownership. 

This means that if you sell a car without insurance, the buyer can't drive it legally, and could face penalties like fines or having the car impounded. 

Moreover, buyers might hesitate to purchase a car without insurance because it could affect their own insurance policies negatively.

Even if your car is not being used and you have it declared off-road (known as SORN - Statutory Off Road Notification), it still must be insured and taxed before you can move it, allow test drives, or sell it.

• Find out more: How to sell a car

As with banking customers, insurance policyholders in the UK benefit from the protection of the Financial Services Compensation Scheme (FSCS) if their insurer goes bust. This means:

• If you're entitled to a refund of some of your premium, the FSCS will repay 90% of the owed amount.
• If someone has made a claim against you that's covered by your insurance, the FSCS will pay it in full.
• If you have an outstanding claim with your insurer that it can no longer pay, the FSCS will pay 90% of it.