Vehicle insurance
Drivers want to know that when a claim is made after an accident or theft, the insurer will pay out without a long argument.
Vehicle insurance companies
28 companies
About Vehicle insurance
Vehicle insurance covers the financial risk of owning, driving and keeping a car, van, motorcycle or other road vehicle in the United Kingdom. Policies cover damage to the insured vehicle, injury and damage caused to third parties, and in some cases theft, fire, windscreen damage and personal injury. Cover is sold in levels, from third party only to comprehensive, and each level sets out what the insurer will pay for.
Motor insurance is a legal requirement for any vehicle used on public roads in the United Kingdom, and the minimum level required is third party liability cover. The category also includes policies for specialist vehicles such as classic cars, motorhomes and fleets owned by businesses.
Vehicle insurers sell their policies through a mix of channels, including price comparison websites, direct sales over the phone and online, and brokers who arrange cover from several insurers at once. Many insurers carry the risk themselves as underwriters, while others act as intermediaries that pass the business to partner insurers. Some insurers also work through car dealerships and lenders, selling cover alongside the purchase or finance of a vehicle.
Questions about Vehicle insurance
How do I choose a vehicle insurance company in the UK?
Start by deciding the level of cover you need, which is third party only, third party fire and theft, or comprehensive. Then compare quotes from several insurers and check the policy wording, excess and included extras before you commit.
What should I compare when looking at car insurance quotes?
Compare the level of cover, the excess you would pay in a claim, and any optional extras such as breakdown cover or courtesy car provision. Check the annual premium, the payment options and whether there are fees for paying monthly. Look at the policy exclusions and the rules on named drivers, as a policy that does not reflect who drives the car may be invalid.
Do I have to tell my insurer about changes to my details?
Yes, you must tell your insurer about any change that could affect the risk, such as a new address, a change in the main driver, a modified vehicle or a new criminal conviction. The Insurance Act 2015 requires a fair presentation of the risk, and failing to disclose material facts can allow an insurer to decline a claim or cancel the policy.
Can I buy vehicle insurance straight away after getting a quote?
You can buy the policy online or by phone once you have accepted the quote, and the cover starts on the date you choose. Read the key facts and the policy summary before you pay, as these set out the cover, the excess and the cancellation terms.
How do I cancel my car insurance policy?
Under the Insurance Conduct of Business rules set by the Financial Conduct Authority, you have a 14-day cooling off period from the day you receive the policy documents to cancel for a full refund, provided you have not made a claim. After that period you can still cancel, but you may be charged for the time the policy has been in force, and you should check the terms for any cancellation fee.
What happens after I make a car insurance claim?
You report the claim to your insurer as soon as possible, providing the details of the incident, the other parties and any photographs or witness information you have. The insurer will then assess the claim, arrange repairs through its approved network or pay a cash settlement, and may ask for further evidence before deciding.
What if I am unhappy with how my insurer handled a claim or policy?
Make a formal complaint to the insurer first and ask for a written response, as the firm must have a complaints procedure under Financial Conduct Authority rules. If you are still dissatisfied after eight weeks, or receive a final response you do not accept, you can refer the matter to the Financial Ombudsman Service, which is free for consumers.
Is vehicle insurance in the UK regulated?
Yes, insurance providers in the UK are regulated by the Financial Conduct Authority, which sets conduct rules, and the Prudential Regulation Authority, which oversees their financial soundness. Compulsory motor insurance is required under the Road Traffic Act 1988, and driving without at least third party cover is a criminal offence.
What compensation scheme protects me if my insurer fails?
The Financial Services Compensation Scheme protects policyholders if an authorised insurer becomes insolvent. For compulsory motor insurance, claims against an insurer that has failed are handled through the Motor Insurers' Bureau, and you should check your insurer's status on the Financial Conduct Authority register.
What is the Motor Insurers' Bureau and when does it apply?
The Motor Insurers' Bureau is an organisation funded by insurers that compensates victims of uninsured or untraced drivers in the UK, and it operates under agreements with the government. It also deals with claims where an insurer has become insolvent and cannot meet its obligations, ensuring that injured third parties are still compensated.
What should I look for in reviews of vehicle insurance companies?
Look for reviews that describe the claims experience in detail, including how quickly the insurer responded and whether the settlement matched what was promised. Be wary of reviews that focus only on the initial price, and check whether the reviewer's claim was accepted or declined, as this shapes how their experience should be read.
How do I check whether an insurer is authorised to sell car insurance?
Search for the firm on the Financial Conduct Authority register, where you can confirm its authorisation status, permissions and any regulatory notices. You can also check the Financial Services Register entry against the name and address shown on your policy documents to make sure they match.