We compared 31 car insurance providers, reviewed the cover included in their policies, and analysed customer feedback.
NFU Mutual Car Insurance
What we like: NFU Mutual doesn’t charge an admin fee or interest if you want to pay monthly, and motor legal protection is included as standard.
LV Car Insurance
What we like: Of all the policies we rated, LV’s policy had the least amount of “gaps” in coverage, receiving three stars or more in 86% of the policy areas we assessed. It also provides no-claims discount protection against an unlimited number of claims.
Aviva Car Insurance
What we like: Aviva customers were among the most likely to say their claims were handled with understanding. If your car is damaged by a pothole, you can claim without affecting your no-claims discount.
Why is car insurance so expensive?
According to the latest figures from the Association of British Insurers (ABI), the average private motor insurance premium was £539 (January–March).
This is down 7% from the average premium of £635 at the start of 2024.
However, these recent drops follow several cost increases that the ABI attributes to higher vehicle repair costs, increased thefts, and rising prices of replacement vehicles.
ABI data shows insurers paid out £11.7 billion in motor insurance claims in 2024 — a 17% rise compared to the previous year’s claim costs.
Are the best car insurance providers always the most expensive?
Our research reveals significant differences in service standards and levels of cover across companies and policies.
But that doesn’t mean you have to pay a premium for quality coverage — nor does a higher price necessarily mean you’re getting the best.
Insurers quote you an individual price based on how they assess your risk. If an insurer considers you high risk, or simply doesn’t want to compete for your custom, their policy could be more expensive than others offering better cover.
What is the average monthly cost of car insurance?
According to the ABI, the average annual premium paid by drivers between January and March 2025 was £589 — which equates to about £49 per month.
Your excess, vehicle type, and age can increase your premium.
Keep in mind that paying monthly instead of annually can cost you more. In some cases, insurers charge over 30% interest — similar to being in a bank overdraft.
What age group has the cheapest car insurance?
Your 50s and 60s should be among your cheapest years for car insurance — as long as you pick the right policy.
However, costs can start rising again as you get older, and some insurers may refuse to cover you entirely.
There are specialist policies for over-50s, but standard insurers may still offer better prices. Make the most of your no-claims discount — which can be eroded by increasing premiums — and check if your new insurer will honour it when switching.
Can car insurance be transferred to a new car?
Yes. Your policy can be transferred to your new car, even if you’re midway through a 12-month term. Once the transfer is complete, your new car will be covered in the same way as the previous one.
Some providers may charge an admin fee to update your details. These changes should include your car’s make, model, and mileage. Your new car may affect your insurance premium.
Your provider will need to know the transfer date of the policy. The best time to contact them is after you’ve found out when you’ll be picking up the car from the dealership or seller. That way, your insurance will be active on the day you drive it home.
Can I drive other vehicles under my policy?
If you’re added to someone else’s policy as a named driver, you’ll be covered to drive their car up to the policy’s level of cover.
Your policy may also include driving other cars (DOC) cover — even if you’re not named on the other person’s policy.
However, DOC usually provides third-party cover only and is often valid only in emergencies.
Can I sell my car without insurance?
No. You can’t legally transfer ownership without car insurance.
Selling a car without insurance means the buyer can’t legally drive it and risks fines or seizure of the vehicle.
Also, buyers may be hesitant to purchase an uninsured car, as it can negatively impact their own insurance policy.
Even if your car isn’t being used and you’ve declared it off the road (SORN — Statutory Off Road Notification), it must still be insured and taxed to allow test drives or to be moved.
What happens if my insurer goes bankrupt?
UK banking and insurance customers are protected by the Financial Services Compensation Scheme (FSCS) if their insurer goes bankrupt. This means:
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If you’re entitled to a refund on your premium, FSCS will return 90% of the amount owed.
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If someone makes a claim against you that’s covered by your policy, FSCS will pay it in full.
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If you have an unpaid claim your insurer can no longer pay, FSCS will pay 90% of the claim.
