7 Cheapest Car Insurance Companies in the UK 2023: Pros & Cons
Although it makes sense to compare vehicle insurance policies to get the best deals, obtaining the right coverage is more vital than finding the cheapest car insurance available in the UK.
If you choose the cheapest auto insurance quotation, it’s possible that you won’t get the coverage you require and that you’ll need help filing a claim. You may lose your car as a result of this. Here are the top firms to consider when comparing quotes from different websites to find the cheapest auto insurance coverage.
1. Churchill Car Insurance
Churchill can be a good option for people who prioritize price because it frequently offers the lowest quote at one of the most popular comparison websites (Moneysupermarket). This is true even though their customer service and ratings may be a little lower than those of the top-ranked brand on our list (LV). Churchill insurance can be obtained straight from the business or from a variety of comparison websites. The Direct Line Group’s “cheap” brand Churchill is one of its offerings (along with Privilege). The third-largest auto insurer in the UK, Direct Line, sells 28.2% of its premiums through price comparison websites under the Churchill and Privilege brands.
For the normal driver without any major violations on their record, Churchill is typically quite reasonably priced, and consumers express satisfaction with the level of service received. Churchill, in our tests, refused to provide a quote for about 30% of UK postcodes, so many customers there will need to search elsewhere. The average premium for a 30-year-old driver for a Ford fiesta is £425.
Pros
- Customer service is open 24/7
- Live chat feature
- Good customer ratings
- Ability to upgrade courtesy car cover
Cons
- Higher cancellation fees
- No insurance for accidental key damage or loss
- Some client complaints are very unfavorable
2. Liverpool Victoria (LV) Car Insurance
Liverpool Victoria’s customer support and ratings are among the best of the bunch, even though they are not the cheapest auto insurance provider compared to the other companies on the list. Purchases of LV policies can be made directly from the business, via comparison websites, or through brokers. Existing customers frequently renew their subscriptions, and according to LV, their multi-car insurance is the most affordable option to obtain annual coverage for all of your household’s vehicles. The average premium ranges from £450 – £579.
Pros
- Solid range of features available
- Misfuelling cover
Cons
- Those looking for the cheapest cover
- A courtesy car is extra
3. AXA Car Insurance
The second-largest provider of car insurance in the UK is AXA. They underwrite policies for various brands, including mypolicy.co.uk. They also sell insurance under their name and for their brands, such as Swiftcover (pay-per-mile coverage). Therefore, if you purchased auto insurance from a company that doesn’t write its policies, you might discover that AXA is ultimately responsible for providing your coverage.
The average comprehensive single payment premium is £545.71 annually according to Nimblefins.
The business provides its clients with the normal protection and price breaks you’d anticipate from a sizable, global insurance provider, and for some drivers, their rates can be very cheap.
Pros
- Cover for most (if not all) features you would want
- Good Trustpilot rating
- Impressive courtesy car cover
Cons
- Cancellation fees and admin fees are fairly high
- No premium courtesy car feature
- Bad FOS complaint ratio
4. Direct Line Car Insurance
The Direct Line Group offers auto insurance directly to customers. Therefore, comparison websites will not list the “Direct Line” brand (though they will list The Direct Line Group’s Churchill, Darwin, and Privilege motor insurance brands). In 2020, the Direct Line brand accounted for about two-thirds of the group’s sales, with the remaining third coming from these “cheap” brands in the PCW channel. In comparison to the PCW brands, the primary “Direct Line” brand does offer a few significantly better benefits, such as a courtesy car in the event of theft or a total loss (rather than only repairs after an accident), as well as less expensive admin and cancellation costs.
One of the novel offerings from Direct Line is the protection of your no-claim bonus on no-fault claims. The average premium is about £554, an increase of £32 over last year.
The Churchill, Darwin, or Privilege brands of Direct Line may offer even lower rates through price comparison websites if you’re looking to save money on your premium. Direct Line has earned a reputation as an insurance provider that is not listed on comparison websites.
Pros
- No admin fees for mid-term changes
- There is no cancellation fee during the 14-day cooling-off period.
- Beneficial courtesy car guidelines.
Cons
- An increase in the number of formal FOS complaints from customers
- Lower coverage on car keys
5. Quotemehappy Car Insurance
One of the cheapest vehicle insurance brands offered by Aviva is Quotemehappy. Despite the low cost, drivers still receive several attractive extras like legal and windscreen coverage as part of their plans. Additionally, despite Trustpilot being an internet business without a call center, clients give it very high ratings there (albeit this reflects the sales process more so than the claims process). The average premium for a 30-year-old driver for a Ford fiesta is £600.
Car insurance rates from Quotemehappy.com typically rank among the most affordable, though individual circumstances may affect this.
Pros
- More affordable cover from Aviva
- Recovery and transportation after an accident
- 3-year repair guarantee
- Motor Legal
Cons
- No customer service call center.
- Cancellation fees even during the cooling-off period.
- The key cover is extra.
- No cover for child seats.
6. Diamond Car Insurance
The Admiral Group also owns the brand Diamond. It is intended for ladies and responsible drivers. There is no accommodation or onward travel after an accident, unlike Elephant (another Admiral brand discussed later), and cancellation fees are higher. However, they will take your passengers away from the accident scene if it is not safe to the closest location of a local amenity.
Diamonds don’t solely belong to women’s jewelry; however, they offer up to £300 in handbag insurance (if yours is stolen from a locked car). If you’re a safe driver, Diamond will get you a policy from one of the biggest UK auto insurers, and pricing is reasonable, typically on pace with Admiral quotations. The average premium for a 30-year-old driver for a Ford fiesta is about £672 annually.
Pros
- Good list of features that are essential and desirable
Cons
- No accommodation and limited onward travel in case your car is not drivable after an accident
- Higher cancellation fees
7. Elephant Car Insurance
Elephant, another Admiral Group brand (like Diamond), is promoted as a low-cost choice with a few optional extras, including a key cover or personal belonging storage. Although there may be a slight difference in premiums, there is no accommodation or onward transport in the event of an accident, and cancellation fees are somewhat high.
According to Elephant, 10% of reported customers saved 25% with their quotations, making Elephant one of the more affordable options you’ll find (July 2019 & December 2019). However, we’ve recently observed that the “Admiral” brand of auto insurance has practically equal costs. As always, shop about and compare premiums before making a purchase. The average premium for a 30-year-old driver for a Ford fiesta is £677.
Pros
- Customer service opens on Sundays.
Cons
- No accommodation or onward travel in case your respectable car is not drive-able after an accident
- High cancellation fees
Final Thoughts
There are several pricing and review comparisons of the top, affordable UK car insurance companies every year, allowing you to choose the best deal quickly. While no specific insurance company is the cheapest or best for everyone, several stand out for their features, affordable rates, and a winning combination of positive client feedback.
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