Lloyds car insurance review

Find out whether Lloyds car insurance is worth banking on.

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Lloyds car insurance

With Lloyds you can get a few different types of policy. You can get a basic third party deal or a third party, fire and theft policy.

Or if you want a higher level of protection you can get comprehensive coverage, which also comes with a courtesy car and a three-year guarantee on approved repairs.

For more detail about what Lloyds will cover you and your car for, read our review below. We also offer some tips on cutting car insurance costs too.

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Who is Lloyds Bank?

Lloyds Bank was founded in 1765 as a private banking business in Birmingham and is today part of the Lloyds Banking Group, along with Halifax, Scottish Widows and Bank of Scotland.

While it is known as being one of the Big Four banks in the UK, it also offers a wide range of insurance policies.

What are Lloyds’ levels of cover?

Lloyds offers three levels of insurance: third party; third party, fire and theft; and comprehensive. If you’ve recently passed your test and your car isn’t too expensive, you could well go for one of the first two options.

Neither third party nor third party, fire and theft will cover any damage your car suffers in a collision though. What’s more, comprehensive can sometimes work out as being cheaper.

This might seem a bit illogical. After all, it’s a bit like an Italian restaurant selling you a whole pizza for less than a single slice.

Basically though, it’s because insurance companies have responded to the fact that high-risk drivers have generally gone for third party coverage in the past. So it’s definitely worth getting quotes for all the various levels of protection.

Lloyds third party

This is the lowest level of cover available from Lloyds. Essentially it will protect other road users but it won’t pay out for any injury or damage you or your car suffers. You also get perks like 60 days’ coverage for travel in Europe and No Claims Discount Protection.

Lloyds third party, fire and theft

This is the mid-range level of cover. It covers other road users should you be involved in a collision, while it will also pay out for any damage your car suffers in a fire or because of theft. You can enjoy the same add-on perks as a third party policy too.

Lloyds comprehensive

This offers the same protection as third party, fire and theft, but will also cover your car if it’s damaged in a collision. You get a number of extra perks with a Lloyds comprehensive policy too, including a three-year guarantee on approved repairs, vandalism cover and a courtesy car.

Optional extras

Lloyds also has some extra levels of cover you can take out alongside your main motor insurance policy:

  • No Claims Discount Protection
  • Keycare Cover
  • Motor Legal Protection
  • RAC Breakdown Cover

What’s covered under my policy?

Cover benefitsThird partyThird party, fire and theftComprehensive
Fire and theft
Vandalism cover
Glass damage
Three years of guaranteed repair work for fire or theft claims
Accidental damage
Courtesy car cover
Replacement locks
European car insuranceUp to 60 daysUp to 60 daysUp to 60 days
No Claims Discount Protection
24-hour emergency helpline

Check your policy carefully to ensure it covers everything you need it to cover.

General exclusions

While Lloyds can offer you a fair amount of protection, there are still a few reasons why you won’t be covered:

  • Your car is being used for commercial travel.
  • You’re being paid to carry goods or passengers (for example, taxis and delivery drivers).
  • You use your car at a track day or off-road event.
  • You fail to provide accurate information when signing up with Lloyds.

For a full list and explanation of the exclusions, see your insurance policy.

How to save on your Lloyds car insurance policy

  • Bank with Lloyds. Lloyds Bank customers can get a 10% discount for their first year of car insurance.
  • Drive safely. Making claims regularly and getting speeding tickets will only drive up your insurance costs.
  • Having a secure place to store your car. Keep your car in a garage or in a secure driveway and the insurer could well lower your costs.
  • Lower mileage. Tell the insurance provider if you’re retiring or you’ve changed to a job that requires less of a commute. It could well bring your premiums down.
  • Up the excess. By agreeing to pay a higher excess you can lower your premiums, but it might cost you more in the long run if you need to make a claim.
  • Pick a smaller car. Insurers charge customers with smaller and less-powerful cars less.
  • Check comprehensive. Higher risk customers have historically taken out lower levels of cover, so check to see if a comprehensive deal is actually cheaper.

What is my excess?

A policy excess is the amount of money you have to pay out of your own pocket when you make a claim, usually up to £350. By voluntarily agreeing to a higher excess you can lower your monthly or annual insurance costs (your premiums). However, you need to make sure you can afford the excess.

How do I make a claim?

Lloyds’ claims line is open 24/7 and you can get in contact by calling 0344 209 0477. When you call you will need to provide a few details:

  • Your policy number
  • The date and time of the accident
  • Details of any other people involved
  • Details of any witnesses
  • The crime reference number if the police were involved

Frequently asked questions

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