Top 10 best car insurance companies 2020

Key questions before you choose your insurer

Ask yourself these questions about a potential insurer to help you decide whether it’s right for you:

How do I make a claim?

Is the claims process clearly explained? If the insurer offers several ways for you to get in touch, this will make life easier if you need to make a claim.

How do I contact the insurer and can I speak to someone 24/7 to make a claim?

It’s worth checking you can always contact the insurer if the worst happens. All our reviews will detail this.

Can I amend my policy?

Insurers differ in what they charge your for amending details such as your address or job title. It’s worth checking how flexible an insurer is on this before you sign up.

Which are the best and worst cars to insure?

Generally, the more expensive a car is, the more it’s likely to cost to insure it. If you’re thinking high performance and sports cars will be expensive to insure, then you’d be right as they tend to cost more to buy and are unfortunately more appealing to thieves.

Every new car in the UK is given an insurance group rating, which helps insurers understand which cars will cost more to insure and which cars will cost less. Sports cars and high performance models have some of the highest group ratings out there. On the other end of the rating scale are the smaller and safer cars – these usually cost less to buy and repair, which is likely to result in lower premiums.

If you have your heart set on a particular car, do your research before making the purchase to assess whether you can afford the insurance premiums that will follow.

How to find the best car insurance company

Firstly, ensure you’re getting the cover you need. When shopping for car insurance, one of the first factors you’re likely to consider is how much it costs. But remember that choosing the cheapest policy won’t necessarily give you the cover benefits you need – it’s important to compare what you get with the policy.

Secondly, the real test of car insurance is what happens when you need to make a claim. That’s why it’s important to consider both the level of cover and the level of service. It’s no good having a courtesy car included in your cover if, in your hour of need, it’s not available or turns out to be a poor substitute for your own car. The information in this guide about our top insurers is a good starting point.

Lastly, of course no one wants to pay over the odds for their cover, so it’s always important to review your premium each year and compare car insurance from different providers. Consider switching as you’re likely to save – some people save hundreds of pounds. If you do want to stick with your insurer, you can try haggling, as that’s common and usually effective.

Frequently asked questions

• Can I get a cheaper quote if I have several cars to insure?

  Multi-car policies are a great way to save money on your car insurance if you have more than one car you need to insure. Insurance companies offer discounts if you’re looking to insure multiple vehicles. You can usually insure up to five cars with this type of policy.

• Is comprehensive cover always more expensive?

  No. Because of the risk profile of many people who take out a lower level of cover – such as third party or third party, fire and theft – getting comprehensive cover can work out cheaper. So it’s always worth checking.

• How much should I be paying for my car insurance?

  When your car insurance comes up for renewal, it’s always worth shopping around. Even if you want to stick with the same insurer, it pays to get some other quotes and haggle. It’s also worth considering switching as you could well find better cover for the same price, or better service, or both.

• How do I get the best car insurance rates?

  Firstly, it’s important to work out exactly what you want from your car insurance by deciding on the level of cover. Shop around and compare your options from the insurers willing to cover you and your car. Price will likely be a big factor for you but it shouldn’t be the only detail you look at. Check out the policy benefits as well as the price. Keep in mind that the cheapest policies don’t always work out to be best when something goes wrong.

  You may also want to consider multi-car insurance if you own more than one car, which could see a discount added to your premium.

• How are car insurers regulated?

  Car insurance companies are authorised and regulated by the Prudential Regulatory Authority (PRA) and the Financial Conduct Authority (FCA). The way an insurance company conducts its business and how it treats its customers is regulated.

  An insurer cannot be authorised to operate without the approval of the FCA, which is then shared with the PRA.

• How can I cut costs without compromising on cover?

  There are several ways in which you can cut the cost of your premium without limiting your cover. Consider some of the following:

  • Enhance your car’s security with an alarm and think about where you park your car at night. Keeping your car on your driveway or locked up in your garage should mean lower premiums.
  • Reducing your mileage could lower your costs as you’ll physically be on the roads less.
  • Increasing your excess should reduce your premium but be sure you can cover the costs if you make your excess very high as an insurer won’t cover any claims that cost less than this amount.
  • If you can, try to pay for your insurance upfront for the year, as paying monthly could see interest being added to your premium.
  • If you’re a safe and careful driver, telematics insurance, which records your driving and braking habits could lower your premium.
  • If you know you’re classed as a high-risk driver because of your age or driving history, adding an older and experienced driver onto your cover could bring the premium down.
  • Insurers may offer you a discount for participating in advanced driving skills courses. Not only should premiums reduce but you may even become a safer driver.
  • If you can, select a safe and small car to driver rather than a sporty high-performance model.
  • Finally, always shop around and compare your options.

• How much cover do I need?

  How much cover you require will very much depend on your own circumstances. If you drive an old banger that has seen better days and you drive it infrequently, it might not make sense to choose a comprehensive policy. Alternatively, if you’re the proud owner of a brand new sports car that you commute to work in, you may want to opt for a comprehensive policy to ensure you’re not left out of pocket should anything go wrong with your car. Consider answering these questions about you and your car to help you decide what level of cover is appropriate for you:

  • How much is my car worth?
  • How old is my car?
  • What do I use my car for – business or pleasure?
  • How often do I drive my car?
  • Where is my car parked at night?
  • Am I a high-risk driver because of my age or driving experience?

• What features should I look for in a policy?

  What you need out of a car insurance policy may be very different to what someone else needs. With this in mind, do you research to look at what a policy actually offers compared to other similar policies out there on the market. While comprehensive policies may share several cover features, such as accidental damage and a courtesy car, there will be other features that differ and may actually cost you more if a particular insurer classes the protection as an optional extra. Think about the optional extras that are on offer to enhance your cover and check to see if there are other insurers that include what you need as part of their standard policies. If you think you do need one or more of the optional extras, weigh up the extra cost with the peace of mind it might give you. Do you really need breakdown cover, European cover or enhanced legal protection? Extra protection will come at an extra cost so only add cover that you really want.