It’s common knowledge in the UK that car insurance is mandatory. At the very least, a driver must have third-party insurance for their motor to cover any accidental damage or injury to others. Car insurance is not a one-plan-fits-all type of affair, as this is a product customised to fit the policyholder’s needs and financial circumstances.
That’s why it’s important for drivers to find cheap car insurance in the UK. If you’re an insurance professional providing car insurance to new drivers, experienced motorists, or seniors, you can bookmark this article for reference. We’ll discuss the cheap car insurance options in the UK for these types of drivers, along with relevant topics like how to reduce the cost of car insurance, and more.
Looking for car insurance in the country that offers affordable premiums without compromising quality service can be a daunting task. That’s why our team cobbled together a list of the cheap car insurance companies in the UK that can give the best value.
To cover more ground, our team decided to include options for cheap car insurance in the UK for different demographics. We’ll start with the youngest legally allowed drivers, 17-year-olds. Take note that the cost of policy premiums can vary depending on the gender of the named driver – more on this later.
Cheapest car insurance policy premiums for a 17-year-old named driver
|
Rank |
Insurance Company |
Average Annual Premiums for 17-year-old Male |
Average Annual Premiums for 17-year-old Female |
|---|---|---|---|
|
1. |
£850 to £1,050 |
£750 to £900 |
|
|
2. |
Go Girl |
N/A |
£800 |
|
3. |
Think Insurance |
£850 to £1,200 |
£750 to £1,000 |
|
4. |
City Insurance Group |
£900 to £1,200 |
£800 to £1,100 |
|
5. |
Marmalade |
£900 to £1,250 |
£800 to £1,100 |
|
6. |
Elephant |
£950 to £1,350 |
£850 to £1,200 |
|
7. |
£1,000 to £1,400 |
£900 to £1,300 |
|
|
8. |
Co-op Insurance |
£1,050 to £1,400 |
£950 to £1,300 |
|
9. |
Hastings Direct |
£1,100 to £1,450 |
£950 to £1,300 |
|
10. |
LV= (Liverpool Victoria) |
£1,100 to £1,450 |
£1,000 to £1,300 |
The numbers provided are price ranges that represent common trends in the market for cheap car insurance in the UK for the youngest bracket of drivers. In the case of Go Girl, this insurance company specialises in car insurance for female drivers only, hence the absence of pricing for male drivers.
Much of the premiums listed are mostly for at least two types of car insurance: third-party only car insurance, and telematics insurance, also called usage-based insurance (UBI). A main benefit of telematics: this “black box” type of insurance can offer significant discounts on premiums and renewals if drivers are careful and obey all traffic rules.
As for comprehensive car insurance, it is unlikely to come cheap due to its extensive level of coverage. But if you want the optional extras like breakdown cover, windscreen cover, and a decent degree of personal accident cover as standard, then choose this type of insurance – but expect a higher monthly payment.
Car insurance for young drivers is higher, particularly for those who are 17 years old. The reason for this is they are perceived to have a higher risk, due to their lack of driving experience and, therefore, have a higher likelihood of accidents.
The latest government study on younger drivers shows that 33 percent of car collisions in the UK involving at least one younger driver were male, between 17 and 24 years old. Meanwhile, 17 percent of these casualties were female, aged between 17 and 24. And since insurers are not particularly fond of high-risk insureds, cheap insurance for their cars in the UK can be elusive.
However, women typically pay less costly premiums than men; as proven by studies like those above, women drivers are less accident-prone. The gender disparity in auto accidents is more evident and pronounced in sets of younger, less experienced drivers.
Ageing in the UK has its upsides – looking forward to lower insurance premiums is one of them. As you reach adulthood, the car insurance premiums you used to pay as an inexperienced young driver begin to plummet. Once you reach the age of 25, car insurance prices for you become significantly lower.
|
Rank |
Insurance Company |
Average Annual Premiums for 25-year-old Male |
Average Annual Premiums for 25-year-old Female |
|---|---|---|---|
|
1. |
£720 |
£750 to £900 |
|
|
2. |
AA Insurance |
£770 to £800 |
£759 |
|
3. |
RAC |
£740 to £770 |
£800 |
|
4. |
£730 to £760 |
£770 |
|
|
5. |
Sterling |
£800 to £830 |
£760 |
|
6. |
Hastings Direct |
£820 to £840 |
£830 |
|
7. |
Marmalade |
£810 to £850 |
£840 |
|
8. |
MyFirst |
£790 to £810 |
£850 |
|
9. |
Direct Line |
£720 |
£664 to £801 |
|
10. |
LV= |
£720 |
£801 |
For comparison, here is a table that shows how significantly your car insurance quote can change as you get older:
|
Age |
Average annual premium/cost |
|---|---|
|
20 |
£851 |
|
25 |
£759 |
|
35 |
£639 |
|
45 |
£575 |
|
55 |
£468 |
|
65 |
£491 |
|
75 |
£752 |
Source: moneyhelper.org
Notice how paying for your car insurance at 75 years old increases significantly, reaching nearly the cost of car insurance for 25-year-olds. The reason for this is that while younger drivers are at a higher risk than older drivers, car insurance for individuals over 60 may be more expensive. This is because likelihood for getting into an automobile accident is higher for that age range.
As you age and gain more experience in driving, you may also gain more experience in your career and move up the ladder. You may even end up owing a business – don't forget to check our guide on the best insurance for company cars.
On December 2021, the EU issued a directive removing gender-based insurance pricing, well before Brexit. This directive has since been incorporated into British law; this is why insurers cannot use gender to legally price car insurance in the UK.
However, while it does seem that insurers are still using gender as the basis for pricing, the reality is that differences in average premiums between male and female drivers arise indirectly from other risk factors that have a strong correlation with gender. Insurance pricing is more about zeroing-in on the individual and the car they drive.
Male drivers have behaviours that tend to increase the average price of their premiums and impact their ability to earn or maintain their claim discount. For example, male drivers are more likely to:
buy and drive newer, more expensive cars as opposed to older ones
commit more traffic violations like speeding, driving under the influence of alcohol, texting or calling while driving
have statistically higher accident rates than women, leading to more costly claims
That leaves the male drivers in the UK paying substantially more than female drivers. According to figures from confused.com, in general:
Although these numbers can be disappointing (especially for men), it serves as a good benchmark for helping you find cheap car insurance in the UK.
As motorists reach their golden years, the decline in the cost of car insurance cover can reach a certain level at age 60. Past 60 years of age, many insurance companies will opt to increase the cost of insurance and their premiums. The main reason for this is that many people (regardless of gender) past 60 or sometimes younger, may develop illnesses that can impair their ability to drive safely.
Impaired vision or hearing, decreased manual dexterity, slower reaction times, along with other age-related issues can all directly contribute to a higher risk of accidents among seniors. That’s why it helps to know where to get cheap car insurance in the UK when you reach past the age of 60. Here are some insurance options for seniors:
|
Ranking |
Insurance Company |
Average cost of annual premiums |
|---|---|---|
|
1. |
£336–£478
|
|
|
2. |
||
|
3. |
||
|
4. |
Tesco Insurance |
|
|
5. |
||
|
6. |
Direct Line |
|
|
7. |
||
|
8. |
||
|
9. |
||
|
10. |
LV= |
£446 (for recent renewal, retired couple) |
As mentioned in the section discussing the EU directive on insurance pricing, insurance companies in the UK are prohibited from setting prices based on gender. This directive applies despite Brexit, since the UK integrated the EU Gender Directive into domestic law before the UK exited the EU.
More specifically, the UK amended its legislation on the Sex Discrimination Act and related laws to comply with the EU ruling. This is why all new insurance policies from 21 December 2012 onwards must be gender-neutral.
The figures for average annual premiums for cheap car insurance in the UK for seniors apply to both male and female motorists. While minor variations in premium pricing can arise due to other risk factors, these are often not officially shared by insurers or collected for seniors as a group.
Insurance professionals and consumers looking for cheap car insurance for seniors should also keep these in mind:
most of the top insurers for seniors aged 65 to 74 offer premiums in the range of £336 to £478
among car insurance providers for seniors, LV= is unique in that it recently offered a real-world renewal at £446 for a retired couple with optimal risk factors
consumers can expect premiums to rise significantly to about £417 when they reach the 75 to 84 age range, or even higher in certain regions
due to regulation, no significant gender-based differences on premiums for seniors are reported
There are some strategies to adopt and items to remember to help insurance professionals and consumers find cheap car insurance. Here’s some advice:
Apart from the cheapest third-party only insurance, you can opt for “black box” or telematics insurance. This type of insurance consists mainly of a telematics device, which is attached to the policyholder’s car to monitor their driving, then updates the renewal rate based on the way they drive. Telematics insurance is ideally suited for younger, less experienced drivers who will more likely be hit with higher premiums.
Buying a car that’s in a low insurance group is a good way to lower your insurance costs. There are 50 insurance groups, with those in group 1 having the lowest risk and those in group 50 having the highest. The easy way to get a car in a low insurance group is to choose one with a less powerful engine or choose a classic car.
Young drivers can lower their premiums by adding older, more experienced drivers as named drivers in their insurance policy.
Less experienced drivers can take extra driving courses. This can be especially helpful for those who have just passed their driver’s test and want to lower their premiums. IAM Roadsmart and Pass Plus are good options for these additional courses.
Some car insurance companies partner with car clubs to provide members with insurance privileges that would not be accessible otherwise. For instance, owners of classic MG cars who join the MG Car Club get perks like special discounts on premiums and access to comprehensive insurance.
As you may have noticed from the average premiums of different auto insurers, there can be a wide disparity in premium pricing. Do not rush to procure car insurance – like buying your motor, this is a considered purchase. Make an informed choice by checking the offerings of several insurers, comparing their prices, discounts, features, and reviews, then choose the one that best fits your needs and budget.
Some insurance companies offer discounts to motorists who only drive a certain number of miles. This can be helpful in lowering your or your client’s premiums if they drive a predetermined number of miles. Do note that limited mileage policies are typically used to insure vintage, classic, or specialist vehicles.
Have you had any experience with cheap car insurance companies in the UK? You can also check the Best Claims Insurers in the UK should you or your client need reassurance regarding claims. You can also visit and bookmark our Best in Insurance Special Reports page to get to know the big names in the industry.
