3 Cheapest Car Insurances in the UK – Full Comparison
If you’re a driver in the UK or Wales, one thing you can’t escape is the need for car insurance. It’s not just a legal requirement, it’s a smart decision.
But when you start shopping for car insurance, you’re immediately hit with options: Third-Party, Third-Party Fire and Theft, and Comprehensive. And then there are the add-ons, pricing differences, and various discounts. What do you choose? What’s the best option for you?
Let’s break it down, no jargon, just simple, real-world advice.
What Are the Types of Car Insurance in the UK?
There are three main types of car insurance that everyone talks about: Third-Party, Third-Party Fire and Theft, and Comprehensive. Here’s what they actually mean for you:
1. Third-Party Car Insurance: The Bare Minimum
Third-party insurance is like ordering the cheapest thing on the menu at a restaurant just because you have to. It’s the minimum you legally need to drive in the UK. Here’s what it covers:
If you crash into someone’s car and it’s your fault, third-party insurance covers their repairs.
If you injure someone, it covers their medical costs.
If you damage someone’s property (like a wall or lamp post), it covers that too.
What it doesn’t cover: Anything to do with you or your car. If you’re the one at fault, you’re on your own for repairs to your car. Whether it’s a scratch or a total write-off, your wallet takes the hit.
Price: It’s usually the cheapest option out there.
For example, someone in Wales with a 10-year-old Vauxhall might pay around £450 a year for third-party insurance. Sounds great, right? Well, it used to be, but these days, many insurers actually charge more for third-party than comprehensive.
Why? Because statistics show that people who choose the cheapest insurance tend to make more claims. So, ironically, the price has gone up.
2. Third-Party, Fire and Theft: The Middle Ground
If third-party insurance is the budget option, then Third-Party, Fire and Theft is like adding a few more items to your meal. It’s still relatively basic but with a few nice extras. Here’s what it covers:
Everything third-party covers, but also:
If your car gets stolen, the insurer will pay you the value of the car.
If your car is damaged by fire, the repairs (or replacement) are covered.
What it doesn’t cover: Like third-party, this policy still doesn’t cover damage to your car in an accident, unless the fire or theft clauses kick in.
Price: You’ll pay a bit more than third-party but not by much. A typical price might be around £550 a year for an older car. For instance, a driver in Wales with a mid-range 5-year-old Ford Fiesta might pay £500-£600 for this level of coverage.
3. Comprehensive Car Insurance: The Full Meal Deal
Comprehensive insurance is like ordering a full-course meal—starter, main, dessert, and drinks. It covers pretty much everything:
Everything third-party and fire and theft cover.
Damage to your own car, even if it’s your fault.
Some policies even throw in windscreen cover or personal accident cover (if you’re hurt in an accident) at no extra cost.
Why this matters: If you’re in an accident—whether it’s a small bump in a parking lot or a major collision—you’re covered for repairs to both cars.
This is why it’s the most popular option for people buying car insurance in the UK. Most people want peace of mind. They don’t want to end up paying thousands of pounds for repairs out of their own pocket.
Price: You’d think it would be the most expensive, right? Here’s the twist—sometimes it’s cheaper than third-party car insurance in the UK. Depending on your driving record and other factors, you might pay around £600-£750 a year for comprehensive insurance on a mid-range vehicle.
For example, a driver in Cardiff with a new Honda Civic might pay around £700 for full comprehensive coverage. For younger or less experienced drivers, this can go higher (around £900-£1,200), but the peace of mind is often worth it.
What Car Insurance People Buying in the UK in 2024?
Here’s where it gets interesting. Despite third-party being the minimum legal requirement, most people in the UK go for comprehensive car insurance in the UK. According to the Association of British Insurers (ABI), nearly 80% of drivers in the UK choose comprehensive coverage.
Why?
Better Value: Comprehensive insurance often offers better coverage for not much more money. If you compare, say, £500 for third-party with £600 for comprehensive, it just makes more sense to pay the extra £100 and be fully covered.
Peace of Mind: With comprehensive insurance, you know you’re protected in almost any situation. Whether it’s your fault or not, you don’t have to worry about huge repair bills.
Extra Perks: Many comprehensive policies include little bonuses like courtesy cars while yours is being repaired, breakdown cover, and legal expenses. It’s these small extras that make it worth the slightly higher premium.
Real-Life Examples: How Much Are People Actually Paying?
Let’s look at a few real-world examples to understand pricing better.
Example 1: Alex, a 30-year-old driver in Wales, drives a 7-year-old Vauxhall Corsa. Alex has 3 years of no-claims bonus. She was quoted £450 for third-party insurance but chose to go with comprehensive coverage at £520. Why? Because the small price difference offered much better coverage.
Example 2: Jake, a 25-year-old with 1 year of no-claims, drives a 3-year-old Ford Focus in Cardiff. He was quoted £600 for third-party fire and theft but went with comprehensive at £720 because it included windscreen cover, legal protection, and a courtesy car.
Example 3: Sarah, a 40-year-old with no claims in 5 years, drives a 10-year-old Nissan Qashqai in Wales. She was quoted £380 for third-party but ended up choosing comprehensive at £450, feeling that the extra protection for her older vehicle was worth the additional cost.
How Can You Lower Your Car Insurance Premiums?
Car insurance in the UK can be pricey, especially for younger drivers or those with high-risk profiles. But there are ways to lower those premiums:
Increase Your Excess: The higher your voluntary excess, the lower your premium. Just make sure you can afford to pay the excess if something happens.
Telematics (Black Box) Insurance: This is popular with younger drivers. A black box is installed in your car to monitor your driving. If you drive safely, you get rewarded with lower premiums.
Build Your No-Claims Bonus: Every year you don’t make a claim, you get a no-claims discount. This can shave 30-60% off your premium after a few years.
Drive a Cheaper Car: Insurers classify cars into insurance groups from 1 to 50. Lower group cars (like a Ford Fiesta or Vauxhall Corsa) are cheaper to insure than high-end cars.
Shop Around: Never accept your renewal price without comparing quotes from different providers. Sometimes a quick search can save you hundreds of pounds.
What’s the Best Car Insurance Option in the UK for You?
If you’re in the UK or Wales and looking to buy car insurance, the right option depends on what you need. Most people opt for comprehensive insurance because the extra coverage offers more value for a slightly higher price. Sure, you might save a bit with third-party or third-party fire and theft, but the coverage gap can leave you with hefty bills if something goes wrong.
At the end of the day, car insurance is about peace of mind. Whether you’re driving down a quiet country lane in Wales or navigating the busy streets of London, having the right cover can make all the difference. So, take your time, shop around, and choose the coverage that works best for you.
Because no one likes surprises—especially when it comes to repair bills!
Most Asked Queries about Car Insurance in the UK
Q: What is Doddle car insurance?
A: Doddle car insurance offers flexible, monthly subscription-based insurance policies in the UK.
Q: Is Japanese import car insurance more expensive in the UK?
A: Yes, insuring Japanese import cars can be more expensive due to parts availability and specialist repair costs.
Q: What does Sky car insurance offer?
A: Sky car insurance offers tailored policies with optional add-ons like breakdown cover and personal accident insurance.
Q: Is car insurance for sports cars more expensive in the UK?
A: Yes, sports cars generally have higher premiums due to their high performance and increased risk of accidents.
Q: Can I get car insurance with no deposit in the UK?
A: Yes, some insurers like Admiral, Swinton, Hastings Direct, and Tesco Bank in the UK offer no deposit car insurance, allowing you to spread the cost over monthly payments.
Q: Which cars come with free insurance in the UK?
A: Some car manufacturers in the UK, like Peugeot, Hyundai, and Kia, occasionally offer free insurance deals on select models as part of promotional packages. It’s better to check latest promotions.
