Comparing car insurance can help you find the best deals, though it's tempting just to pick the cheapest price without fully checking the details of each policy.
What affects car insurance costs?
You may think that the premium relates to the value of the car, and to a certain extent it does. Yet some young drivers pay a high premium despite the car they drive.
Before comparing quotes it's a good idea to know what affects the cost of car insurance. The factors can include:
- Your address
- Your age
- How many years since you passed your test – and any driving offences
- Claims history – both fault and non-fault
- Use of the car – whether social and domestic, commuting or for business
- Drivers named on your policy
- Your occupation
- Annual mileage
- Your vehicle's car insurance group
- Damage repair and parts cost
- Value
- Performance
- Safety – Euro NCAP rating
- Security
- Extras and modifications
The policy excess – the amount you must contribute towards a claim before the insurer pays out – also affects the premium. It's made up of the compulsory excess and the voluntary excess.
The compulsory excess is set by the insurer, and it can vary between insurers.
The voluntary excess is an amount you choose, and this affects the price of your cover.
Comparing car insurance policy features
While finding the cheapest quote is important, checking policy features can help you get the best value for money.
There are three types of car insurance to choose from:
- Third party
- Third party, fire and theft
- Comprehensive
Different insurers may offer further cover within these types, for instance:
- Driving in Europe
- Theft of personal belongings
- Windscreen cover for chips or new glass
- Motor legal assistance to cover the cost of legal fees
- Courtesy car while yours is being repaired
- Personal injury compensation
A courtesy car isn't usually available if your vehicle is a total loss or has been stolen, but some insurers may offer it as optional cover.
Comparing insurance
Price comparison websites conveniently show you multiple insurers on one page, usually with the cheapest quotes first.
However, the cheaper insurers may exclude features such as those listed above, and which have to be added at an extra cost. So it's important to review the full policy features of each quote.
For instance, when comparing two quotes the second may cost £30 more. But unlike the cheaper one it includes windscreen cover and no windscreen excess in its policy (this may not show in the initial results page).
So if you do get a chip and need to replace your glass, the cheaper quote could prove more costly in the long run.
And some benefits, such as a hire car if yours is written off or stolen, may not be included by an insurer on a price comparison website but it may be if bought direct from their website.
Not all insurers are listed on price comparison websites, so it's worth going direct to compare insurance quotes and find the best deal yourself.
While car insurance is a legal requirement, it's still important to pick the cover that's best for you. Have a look at our car insurance jargon buster for an explanation of technical terms.
Author: The AA. Published 6 January 2017. Updated 16 December 2024.