Cheapest Car Insurance Companies in the UK in 2023

Having a car in the UK is expensive, and this is primarily due to the high car insurance premiums. However, this doesn’t mean that you have to break the bank to get insured. In fact, there are a few ways that you can get cheaper car insurance without having to sacrifice quality or coverage.

Companies such as AXA offer some of the cheapest rates on car insurance in the UK – £211 per year. With an average premium price of £430 annually, AXA is almost twice as cheap. The cheapest car insurance in the UK depends on various factors such as the type of car, driver’s age, etc.

In some cases, third-party insurance, e.g., coverage for young drivers, is more expensive than comprehensive coverage for experienced drivers. Therefore, to get cheap insurance coverage in the UK, it’s essential to understand the many underlying factors that go into pricing and offer structures from various providers.

In the UK, you can find suitable car insurance by using this comparison platform; they compare up to 120 car insurance companies to save you money.

Which car insurance company is the cheapest in the UK?

The cheapest car insurance premiums in the UK can be found among these providers:

Provider	Annual price
AXA	£266
Admiral	£382
Hastings Direct	£406
More Than	£408
Direct Line Group	£419
Aviva	£438
LV	£460

While owning a car in the UK might not be the cheapest affair, you can save on your car insurance by researching the premiums charged by various providers. You will avoid extra charges for covers you don’t need and find an insurer offering to cover your car without costing an arm and a leg. 

Consequently, AXA and Admiral provide the cheapest auto insurance quotes, at £211 and £382, respectively. You can find and compare deals of most providers mentioned above by using online calculators like Confused.com.

Keeping in mind that according to the ABI, the average car insurance price in the UK in 2021 was £430, the numbers mentioned above sound like a great deal!

1. AXA – is one of the biggest insurance companies in Europe. AXA has inexpensive and extensive coverages for your car. You can create your personal insurance plan by adding the services you want.

A glance at AXA car insurance:

1. Coverages – third-party&fire&theft and comprehensive
2. They pay out 99.7% of car insurance claims
3. Sign online

When choosing an auto insurance provider, it’s important to compare the quotations from different insurers before making a conclusive decision.

However, regardless of the auto insurer, some factors will determine the calculation of your insurance premium, such as:

• Your residence: Insurers will calculate premium rates based on how people drive in the area, the number of claims from the area, and the crime rate in the area. They will use this data to determine how much to charge you.
• Type of car: An expensive car model will cost more to insure because it will cost your insurer more if you make a claim.
• Your work: Insurance providers may charge more to insure if you do certain jobs that make you need to drive more.
• Age: It will cost more to get auto insurance between 17 and 25 years of age than between 30-50 years.

Plus, the final price will highly depend on the desired coverage you want your car to have. Moreover, cheaper vehicle models are the cheapest to insure, and while it’s mandatory to have at least third-party insurance, it’s not necessarily the cheapest.

Due to the above factors, there is no one-size-fits-all policy for car insurance. Each case is treated differently depending on the underlying situation. 

Nevertheless, if you look at the different factors determining the calculation of premium cost, you will notice that different companies might be cheaper in some cases. Below is a review of the most affordable insurer depending on various circumstances:

1. Insurance quotes based on age:

Finding a cheap insurer is difficult for young drivers. Some insurers are not even willing to insure inexperienced drivers unless you agree to a telematics plan where the insurers will track your driving style.

Regardless, Aviva and Admiral offer the most affordable quotes for young drivers, whereas AXA does not cover inexperienced drivers.

2. Insurance quotes after a DUI (Driving Under the Influence) conviction:

Admiral offers the fairest quotes after a DUI conviction. On the other hand, most insurers choose to stay away from a person with higher DUI convictions.

3. Cover for drivers with speeding charges:

These drivers are categorized as dangerous drivers and, hence, a bigger insurance risk. While most insurers raise their rates for drivers charged with speeding, Direct Line insurance offers the cheapest rates for their coverage.

4. Insurance quotes for drivers after causing an accident:

If you cause a driving accident, an insurance provider can raise the premium charges after the claim. Nonetheless, Admiral increases the insurance rates by the lowest percentage compared to the other insurers.

According to the current statistics, here are the average car insurance prices in the last 5 years:

Moreover, the amount Brits pay every year for insurance premiums also depends on their residence in the UK. With that said, the lowest car insurance rates can be found in cities like Sunderland, Newcastle, and Bristol.

Cheapest car insurance in the UK for new drivers

Getting car insurance coverage as a young driver can be costly, with the average annual insurance quote being around £1,800 for a 17-20-year-old.

A cover for a 21-25-year-old driver might be slightly cheaper, at around £851 on average, but that is still a high figure compared to what other age groups pay.

The price is that high mainly because younger, inexperienced drivers are riskier for insurers to cover. According to the Department of Transport and AA statistics, insurers impose more premiums on young drivers as they are more likely to be involved in an accident than their seasoned counterparts.

Nevertheless, here is how you can reduce your car insurance cost:

Examine the different car insurance quotes and choose the cheapest: Different insurance providers offer different quotes for different needs. Therefore, you can pick the one that suits you best at the fairest price.

Consider choosing telematics insurance (black box policy): Allowing your insurance provider to track your driving will help them gauge how, when, and where you drive. This data will help them determine a fair insurance quote to charge you. Once they are watching, it is up to you to prove that you are a competent and safe driver for them to lower their policy.

Choose an affordable, standard vehicle: The more expensive the vehicle, the more it will cost you to insure. Cheaper vehicles classified in group 1 by the insurance group rating will be the most affordable to insure. Owning cars such as the Citroen C1, Peugeot 107, Fiat 500 Lounge, and the Toyota Aygo will save you hundreds in insurance premiums.

Avoid modifications on your car: While the alloy wheels, turbocharger, and spoiler will soup up and make your car attractive, the insurers will also raise their premium charges on your car. Some may even reconsider covering the vehicle.

Lower your annual mileage: A lower mileage could help reduce your car premium coverage as the insurance provider might deem you less insurance risk.

Consider increasing your excess: Excess is the amount you are willing to pay from your pocket in case of an insurance claim you might make. If you increase this amount, the insurance provider will also reduce the insurance premium on your vehicle.

Pay your insurance premium annually: Paying the whole year’s coverage will cost less than paying monthly.

Take an advanced driving course: Passing an advanced driving test will prove to your insurance provider that you are less risky; hence, they might lower the cost of your car insurance coverage.

Add another driver to your policy: Showing your insurance provider that a more competent driver will also be driving the vehicle might make them lower the premium charged on your car insurance.

Best car insurance company in the UK

The best car insurance companies based on Defaqto ratings and customer satisfaction reviews for their multiple features are:

Aviva

Aviva offers a 10% discount when you insure several cars. Furthermore, they take your car to the repair shop and make sure that you get home after an accident occurs and you can’t drive.

Direct Line 

With Direct Line, there are several types of covers that you can choose from depending on your budget and needs. If you choose the comprehensive cover, they hire a car to take you and your passengers to your destination in the UK in case of an accident.

Admiral 

It’s the largest car insurance company in the UK. Their online arrangements for car insurance are easy and affordable.

Their comprehensive cover has many features such as personal belongings cover for goods stolen or damaged in your car, personal injury cover that will cover you and your partner, provide you with a car to use while yours is being repaired after an accident, 24-hour emergency helpline, among other benefits.

Swinton Insurance 

Swinton comes with the experience of over 60 years of Car insurance. Depending on your cover, after damage, Swinton covers the repair cost of your car to its current market value. Additionally, all their insurance covers cater for the windscreen cover.

John Lewis Finance

John Lewis Finance boasts a high customer satisfaction rating because of its quick response to their needs. Their car insurance offers, among others, a courtesy car in case of an accident, expert services, and uninsured driver cover.

Types of car insurance in the UK

Notably, there are three types of car insurance in the UK. They have different coverage benefits, features, and, therefore, prices:

Third-party car insurance

The minimum coverage on vehicles that the UK law allows is third-party insurance. It caters to the costs arising when you cause a coalition with another motor vehicle. Essentially, a third party pays for damage to the other person’s car and injuries but doesn’t cover your vehicle or your health.  

If you don’t have insurance, you end up paying thousands of pounds out of your own pocket; hence third-party insurance is mandatory.

Third-party, fire, and theft

Like third-party insurance, it covers other people’s vehicles against accidents caused by you but doesn’t cover compensation for your damaged car. However, the third-party fire and theft insurance covers your vehicle in case of damage caused by the fire burning your car or it’s getting stolen.  

Comprehensive car insurance

This is the most inclusive motor vehicle insurance in the UK and covers your car, anyone involved in an accident, and you as the driver. The cover includes medical expenses, repair of damaged cars after an accident, vandalism of your vehicle, and legal fees.

You should sign for comprehensive insurance if your car is new or still relatively new (up to approx. 2-3 years old), so you will receive the money if your highly valued vehicle is damaged, and you will pay less out-of-pocket.

Comprehensive insurance combines two previous insurance types and protects your car and your medical costs. Therefore, it covers:

• Damage that you or your car might inflict on other people, cars, or property, including medical bills
• Costs of car theft and damages caused by acts of nature
• Vandalism and costs for damages you might make to your car or yourself

Third-party, fire and theft, and comprehensive coverages are optionally compared to the obligatory third-party. Therefore, you can determine if you want to add it to your car insurance or not.

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