What has changed in light of the ongoing coronavirus pandemic?
Because of COVID-19 you may find yourself driving less as you work from home, or more because you’re avoiding public transport. Some of these changes may affect your car insurance cover, so you may need to tell your insurance provider. If you’re renewing a policy, try to give an accurate mileage estimate to avoid overpaying if you’re driving less.
With fewer miles driven and fewer claims, some providers have reduced their premiums: the average annual premium was £631 in the third quarter of 2021[3]. This compares to £755 in March 2020, when the first UK lockdown was introduced. This makes it even more important to compare to find a good value quote for your needs.
For more on driving and the pandemic, see coronavirus and motoring.
[3] Compare the Market, Premium Drivers Index, September 2021.Why is car insurance for new drivers more expensive?
If you’re new to driving, you’ll find your insurance is more expensive than for people with more driving experience. This is because new drivers are considered more of a risk by insurance providers. This is partly because of inexperience, but mainly because most new drivers are young drivers.
There are ways you can reduce the cost of your insurance – telematics policies could be cheaper, for example.What does car insurance cover?
If your car is involved in an accident, car insurance could provide cover for:
- Injuries to you or other people
- Damage to your car
- Damage to another vehicle
- Property damage
- Car insurance could also cover you if your car is damaged by fire, attempted theft or if it’s stolen.
Not all car insurance policies offer the same cover, so always read the small print and make sure you’re happy with any exclusions or limitations.Is it better to pay car insurance annually or monthly?
Whether it’s better to pay for your premium annually or each month will depend on your circumstances.
Paying an annual lump sum is usually cheaper than paying monthly. A monthly payment plan could mean you pay more as you might be charged interest on the instalments.Do I need a credit check to buy car insurance?
The insurance provider will carry out a credit check if you want to pay for your car insurance monthly. Providers will also look at your credit score (a 'soft search') when you compare insurance quotes, but this is just to check your details and won’t affect your score.
See more on car insurance and credit checks.How do I estimate my mileage?
To estimate your mileage:
- Work out how many miles you drive every day or week
- Add them up to work out your annual use or
- Check your MOT certificate or car service record, which will show how many miles you’ve driven
- Use this as a basis to calculate your future mileage.
Mileage can affect your car insurance premium – the more you drive, the more of a risk providers consider you to be. Be as accurate as you can when you estimate your mileage. If you underestimate, it could invalidate your policy. If you overestimate, you could end up paying more than you need to.
See more on annual mileage and car insurance.How do I work out my car’s value?
When you compare car insurance with us and enter your registration number, where possible we’ll give you a valuation figure based on the car’s market value – the amount you’d receive if your car was written off. Alternatively, you can use a free valuation tool like the one from Autotrader to find out your car’s current value or look at used-car listings to see the prices of similar models of a similar age, condition and mileage.
See more on how car values affect premiums.How long is my quote valid for?
It depends on the insurance provider. When you compare with us, you can save your searches but you won’t necessarily get the price that you saved when you come back to buy your policy. Some insurance quotes last as long as 60 days, but some can change at any point.Will I be charged if I cancel my policy?
If you cancel within the 14-day cooling-off period, you might have to pay an admin fee but you’ll get a refund minus the days the policy was active for. If you cancel later on, you may have to pay cancellation fees and administration fees. You may or may not get a refund, depending on the circumstances and whether you pay for your policy annually or monthly.
Find out everything you need to know about cancelling car insurance.How do I claim on my car insurance?
You must always tell your insurance provider if you’ve had an accident - whether you claim or not. If you don’t tell them, you could invalidate your policy. To claim:
Find out more about the claim process.When might a claim be rejected?
There are a few reasons why an insurance provider might not pay out. It might be that:
- You might not be covered for what you’re trying to claim for
- There’s a dispute about who’s at fault in an accident
- The provider might believe you’ve invalidated your car insurance – perhaps by giving inaccurate information or not telling them about something they should know.
If your claim is turned down and you don’t think it’s justified, you can take action. Find out what to do if your car insurance provider won’t pay out.I had to make a claim last year. Will my insurance go up?
It’s almost certain that it will. In fact, your premium may go up even if you have an accident and don’t make a claim, because the insurance provider might consider there’s more of a risk of you being in another accident. If you’ve protected your no claims discount that shouldn’t be affected, but your basic premium is still likely to go up.
See more on how an accident can affect your car insurance premium.What does car insurance excess mean?
The excess is the amount the policyholder has to pay towards a claim on their insurance. There are two elements to car insurance excess:
- Compulsory excess – this is set by the insurance provider. You might have to pay an additional compulsory excess if you drive a high-performance car or if you’re a young driver.
- Voluntary excess – this is the amount you agree to pay in addition to the compulsory excess. Agreeing a bigger voluntary excess can reduce the cost of your insurance, but you’ll need to make sure you can afford to pay it if you make a claim.
See more on car insurance excess.How does telematics work?
Telematics or ‘black box’ insurance uses technology to monitor the way you drive and transmits the data to your insurance provider. If you drive safely, it could lead to cheaper car insurance. Telematics works either through a GPS device – the black box – fitted in your car or a smartphone app. These record things like how you corner, brake, your speed and the time of day and how far you drive.
Black box insurance can be particularly useful for young and inexperienced drivers. It can give insurance providers evidence that you’re a safe driver and could reduce your premiums.
Find out about telematics insurance.Can my parents help me get cheaper car insurance?
If you share your car with one of your parents, having them on your policy as a ‘named’ or additional driver could reduce your premium. But they mustn’t be on the policy as the main driver if they’re not. This is a type of fraud called fronting and it's illegal.What is a no claims insentif?
A no claims insentif, also called a no claims discount or NCD, builds up every year you have car insurance without making a claim. You can accrue up to five years and sometimes more, depending on the insurance provider. Your NCD can cut the cost of your car insurance when you renew. You can also opt to protect it so that it’s not affected if you do make a claim.
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