The best and worst car insurers right now
Which are the most reliable car insurers, delivering the best value for money? And which should you avoid purchasing cover from?
Car insurance is just one of a host of additional costs that motorists need to consider.
And just like everything else at the moment, car insurance has been getting more expensive recently.
Figures from CompareTheMarket show that the cost of a typical car insurance premium, paid for in a lump sum, in December 2022 came to £623.
That’s up from £552 at the same point the year before.
The increase has been even starker if you pay for your car insurance in monthly instalments, from £605 to £688 over the same period.
But what makes a good car insurance policy? And which are the best car insurers?
That’s what the consumer champions at Which? set out to establish in their annual car insurance research, which brings together both ratings from customers of each insurer which the Which? analysis of the insurer’s policies.
The best and worst car insurers
Let’s take a look at the top five car insurers according to the Which? study:
|
Brand |
Customer score |
Policy score |
Total score |
|
LV |
79% |
77% |
78% |
|
NFU Mutual |
78% |
76% |
77% |
|
Direct Line |
78% |
68% |
73% |
|
Saga |
71% |
75% |
73% |
|
Axa |
72% |
71% |
72% |
LV took top spot, managing the highest score from both customers and the Which? reviewers.
It scored four out of five in all of the main categories for customers, including value for money.
Which? praised LV for being one of the few insurers to guarantee repairs for a vehicle’s lifetime, as well as offering a replacement car if the insured vehicle is stolen.
NFU, meanwhile, scored well for the clarity of its policy as well as value for money.
Which? highlighted the fact that it is one of the few insurers that don’t charge a cancellation fee or interest should you want to pay for your policy on a monthly basis.
It’s worth noting that Which? picks out ‘recommended providers’ for financial products, based on their analysis of the firm’s practices, and while the top three all achieved that accolade, they were not the only ones.
Others to pick up recommended status included Churchill and Aviva.
And here are the car insurers at the bottom end of the table according to Which?:
|
Brand |
Customer score |
Policy score |
Total score |
|
Tesco Bank |
70% |
67% |
69% |
|
RAC |
75% |
56% |
66% |
|
Admiral |
69% |
56% |
63% |
|
esure |
57% |
69% |
63% |
|
Halifax |
62% |
57% |
60% |
The first thing to point out here is that there’s not an enormous difference between those at the high and low end of the table ‒ there’s only 12% between fifth place and bottom place in the overall scores.
That said, there are some eye-catching low scores on individual areas.
Halifax for example manages just 57% on the nuts and bolts of its policy, with Which? pinpointing issues like a lack of onward travel cover and misfuelling cover, while there’s no cover as standard for a temporary replacement vehicle if your car is stolen or written off.
Esure also stood out as achieving by far the lowest score from individual customers, scoring just two out of five for the ease of managing the policy online.
What makes a good car insurer?
Studies like this are useful in that they can help us pinpoint the insurers that stand out from the crowd, but they also provide an opportunity to question what we really want from an insurer. What makes one insurer good compared with their rivals?
Price is obviously a crucial component. Money is tight, and so you want to feel like you are getting fair bang for your buck from your insurance policy.
There’s a distinction between being cheap and being value for money though ‒ there’s no point signing up for cover that has the absolute lowest price around, but offers little to no help should the need arise to make a claim against the policy.
With value for money, you at least feel like you are getting what you pay for, even if that actual price is higher than may be the case with a rival insurer.
Having a clear and understandable policy is also crucial.
As anyone who has ever shopped for car insurance will know, the cover offered by rival firms can vary significantly, from the cash payouts on offer to what’s included as standard, such as the provision of a replacement vehicle.
Insurers that clearly outlines what is ‒ and isn’t ‒ included in their policy are always going to be highly valued.
After all, the last thing you need following an accident is to discover that your policy isn’t quite what you thought it was when you bought it.
Another big factor in the quality of an insurer will be how they are to deal with in the event of a claim.
Again, there can be huge differences between insurers ‒ we have all heard horror stories about insurers who seem to go out of their way to avoid making a payout, or even giving you a fair hearing about your situation.
This isn’t the case across the board though, with rival insurers establishing a strong reputation for taking a more considered approach.
It’s important to bear these factors in mind when shopping around for a car insurance policy.
While price will always catch the eye, there has to be more to selecting the right cover for you than simply looking at how much it will cost.
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