Best Cheap Car Insurance Of 2024 – Our Pick
When it comes to insurance all drivers want to find the best cover at the lowest price. A Forbes Advisor survey of 2,000 adults, for example, showed that almost half (47%) of drivers switched car insurance providers in the past year, with the most common reason for doing so (38%) to save money.
With car insurance costs soaring, it’s hardly surprising. In the fourth quarter of 2023, the average car insurance premium increased by 12%, according to the Association of British Insurers. The ABI says the increase reflects the rising costs for repair work and replacement vehicles.
So, which are the cheapest insurance brands in the market? That’s difficult to answer because, while a particular insurer might offer a competitive premium to one driver, it could charge a much higher premium to another. The examples below give a snapshot of which insurers are cheapest in particular circumstances.
Our pick of the cheapest car insurance
While we were unable to produce a definitive list of the ‘10 cheapest car insurance providers’, we carried out a spot check instead (July 2024) to discover which insurers came out best for three different driver profiles – you can find out more in our methodology section below.
DRIVER ONE: A 21-year old teacher driving a Fiat 500 Lounge Twinair 105 (2018) with a market value of £5,000. Lives in Brentwood, Essex.
Hastings Direct YouDrive
Premium (annual)
£824.02
Breakdown cover
For £34.99 extra
Total excess
£540 (£250 voluntary, £290 compulsory)
Premium (annual)
£824.02
Breakdown cover
For £34.99 extra
Total excess
£540 (£250 voluntary, £290 compulsory)
The best price for cover came from Hastings Direct YouDrive’s app-based telematics policy. For £824 annually you’ll get courtesy car provision, windscreen cover and personal accident cover. Breakdown cover can be added for an extra £34.99.
The policy comes with a key-fob-sized device which sits in your car and pairs with your phone to transmit data about your driving back to the insurer, who will use it to tailor your future premiums.
- Cheapest policy we found
- Includes courtesy car
- Telematics policy might not suit everyone
- Somewhat expensive excess
InsureTheBox
Premium (annual)
£882.31
Breakdown cover
For £50 extra
Total excess
£500 (£250 voluntary and £250 compulsory)
Premium (annual)
£882.31
Breakdown cover
For £50 extra
Total excess
£500 (£250 voluntary and £250 compulsory)
Insure The Box has a black box telematics policy that for £882,31 a year will give you windscreen cover, personal accident cover and a courtesy car.
The black box submits data about your driving to the insurer which will use it to determine your future premiums, meaning careful drivers may be rewarded while less careful drivers may be penalised.
- One of the cheaper policies
- Includes courtesy car
- Telematics policy might not suit everyone
- No option to pay monthly
Bell
Premium (annual)
£1,006.88
Breakdown cover
For £39.95 extra
Total excess
£475 (£250 voluntary and £225 compulsory)
Premium (annual)
£1,006.88
Breakdown cover
For £39.95 extra
Total excess
£475 (£250 voluntary and £225 compulsory)
Bell, part of Admiral insurance group, is offering this policy with windscreen cover and a courtesy car as standard for an annual premium of just over £1,006.. Adding breakdown cover costs an extra £39.95.
The policy involves having a ‘plug and drive’ telematics device fitted to your vehicle, which transmits data about your driving back to Admiral. That data can be used by them to tailor your future premiums.
- One of the cheaper policies
- Includes courtesy car
- Telematics policy might not suit everyone
DRIVER TWO: A 45-year old married engineer driving a Nissan, Qashqai (2018) with a market value of £14,000. Lives in Blackburn, Lancashire.
Hastings Direct
Premium (annual)
£771.52
Breakdown cover
For £34.99 extra
Total excess
£345 (£250 voluntary and £95 compulsory)
Premium (annual)
£771.52
Breakdown cover
For £34.99 extra
Total excess
£345 (£250 voluntary and £95 compulsory)
This was the cheapest premium we found based on the stated driver profile. It includes windscreen cover, courtesy car and personal accident insurance.
Breakdown cover isn’t included but can be added for £34.99.
Drivers preferring to pay premiums monthly will have the cost evenly spread throughout the year, with a first payment of £73.24 followed by 11 payments of £71.37. Paying monthly equates to an overall annual premium of £858.31, compared to the £771.52 it costs to pay upfront.
There’s a low compulsory excess of just £95 which, when added to our chosen £250 voluntary excess sum, totals just £345.
- Cheapest premium we found
- Courtesy car, personal accident and windscreen cover included
- Evenly spaced monthly premiums
- Low compulsory excess
- Breakdown cover cost extra
achoice Insurance
Premium (annual)
£822.02
Breakdown cover
For £42 extra
Total excess
£450 (£250 voluntary and £200 compulsory)
Premium (annual)
£822.02
Breakdown cover
For £42 extra
Total excess
£450 (£250 voluntary and £200 compulsory)
This was the second cheapest deal we found based on the stated driver profile. You may get windscreen cover and a courtesy car included as standard in the price but you’ll need to check with the insurer first before buying. Breakdown cover is not included but can be bolted onto the policy for £42.
Drivers preferring to pay premiums monthly will have the cost spread relatively evenly throughout the year, with a first payment of £123.30 followed by 11 payments of £75.59. Paying monthly equates to an overall annual premium of £954.79, compared to the £822 it costs to pay upfront.
The total excess on this policy adds up to £450 (including a £200 compulsory excess).
- Competitive premium
- Reasonable compulsory excess at £200
- Windscreen cover may not be included as standard
- Breakdown cover cost extra
Brightside Insurance
Premium (annual)
£897.70
Breakdown cover
For £44.99 extra
Total excess
£450 (£250 voluntary and £200 compulsory)
Premium (annual)
£897.70
Breakdown cover
For £44.99 extra
Total excess
£450 (£250 voluntary and £200 compulsory)
Brightside’s policy offers good coverage with windscreen and a courtesy car included as standard. The excess is £450, split between £250 voluntary and £200 compulsory.
Breakdown and personal accident cover are not included as standard but can be added to the policy for £44.99 and £29.99 respectively.
Drivers preferring to pay premiums monthly will have the cost evenly spread throughout the year, with a first payment of £89.77 followed by 11 payments of £85.20. Paying monthly equates to an overall annual premium of £1,026.97, compared to the £897.70 it costs to pay upfront.
- Courtesy car included as standard
- Evenly spaced monthly premiums
- Higher premiums than some competitors
- Breakdown and personal accident cover cost extra
DRIVER THREE: A 65-year old retired individual driving a Mercedes-Benz, B220d Sport Executive (2023) with a market value of £29,000. Lives in Dundee, Scotland.
Marshmallow Essential
Premium (annual)
£890.10
Breakdown cover
For £39.99 extra
Total excess
£550 (£250 voluntary and £300 compulsory)
Premium (annual)
£890.10
Breakdown cover
For £39.99 extra
Total excess
£550 (£250 voluntary and £300 compulsory)
This was the cheapest deal we found based on the stated driver profile (and with an excess of £550 or under). Courtesy car and personal accident cover are included as standard, but windscreen cover, breakdown and legal cover are not included – these extras can be added for an additional premium (£34.99, £39.99 and £29.99 respectively). However, it takes the number one spot for having significantly lower compulsory excess than the cheapest policy.
Drivers preferring to pay premiums monthly will need to find an initial payment of £123.03 followed by 11 payments of £63.27. Paying monthly equates to an overall annual premium of £982.93 compared to the £890 it costs to pay upfront.
Of the £550 combined excess attached to this policy, £300 is compulsory and £250 is voluntary.
- Second cheapest premium we found
- Reasonable excess
- Windscreen, breakdown and legal cover not included
- First monthly payment is double the usual
Marshmallow Original
Premium (annual)
£949.87
Breakdown cover
For £39.99 extra
Total excess
£450 (£250 voluntary and £200 compulsory)
Premium (annual)
£949.87
Breakdown cover
For £39.99 extra
Total excess
£450 (£250 voluntary and £200 compulsory)
This was the next cheapest deal we found based on the stated driver profile and maximum excess requirements, and includes both windscreen cover and personal accident cover. Breakdown and legal cover are not included, but can be added for (£39.99 and £29.99 respectively).
Drivers preferring to pay premiums monthly will need to find an initial payment of £157.05 followed by 11 payments of £80.76. Paying monthly equates to an overall annual premium of £1,045.41 compared to the £949.87 it costs to pay upfront.
Of the £450 combined excess attached to this policy, £200 is compulsory and £250 is voluntary.
- Courtesy car, windscreen cover and personal accident cover included
- Reasonable excess
- Cheaper premiums are available (with a higher excess)
- Legal cover not included as standard
Hastings Direct
Premium (annual)
£965.22
Breakdown cover
For £34.99 extra
Total excess
£450 (£250 voluntary and £200 compulsory)
Premium (annual)
£965.22
Breakdown cover
For £34.99 extra
Total excess
£450 (£250 voluntary and £200 compulsory)
Hastings Direct offers a solid comprehensive policy including courtesy car, windscreen cover and personal accident cover. Breakdown and legal cover are not included but can be added for (£34.99 and £29.99 respectively).
Drivers preferring to pay premiums monthly will need to find the payments are fairly evenly spread with an initial payment of £91.72 followed by 11 payments of £89.28. Paying monthly equates to an overall annual premium of £1073.80 compared to the £965.22 it costs to pay upfront.
Of the £450 combined excess attached to this policy, £200 is compulsory and £250 is voluntary.
- Competitive premium
- windscreen cover and courtesy car included
- Breakdown and legal cover not included
Methodology
We carried out a general quote check at our car insurance comparison service) for three driver profiles with three different cars. Here’s some more detailed information on each.
Driver one: The first is aged 21 driving a Fiat 500 Lounge Twinair 105 (2018, 875 cc petrol, three-door, manual) with a market value of £5,000. The driver is a single teacher who lives with their parents in Brentwood, Essex and uses the car for social purposes only. This individual drives around 5,000 miles a year on average, and has carried a licence for two years during which time they’ve made no claims.
Driver two: This driver is 45 years old insuring a Nissan, Qashqai N-Connecta A DCI 130 4WD (2018, 1598 cc diesel, five-door manual) with a market value of £14,000. The driver is an aircraft engineer living in Blackburn, Lancashire who is married with one child – and uses the car for social and commuting purposes. This individual drives around 10,000 miles a year on average, and has carried a licence for 20 years during which time they’ve made no claims.
Driver three: This search is based on a 65-year old driving a Mercedes-Benz, B220d Sport Executive CDI (2023, 2143 cc diesel, 5-door, automatic) with a market value of £29,000. The driver is a retired homeowner, lives in Dundee, Scotland, and uses the car for social purposes only. This individual drives around 10,000 miles a year on average, and has carried a licence for 40 years, with 20-plus years no claims.
In all cases, we’ve assumed that the vehicle is parked on the road at the driver’s main address, has had no modifications and is without a dashcam. No other drivers are named on the policy.
We searched for fully comprehensive pay-monthly insurance entering voluntary excess of £250, stripping out any policies where the total excess (voluntary and compulsory combined) exceeded £550. We also eliminated all telematics and pay-as-you-go policies.
The gender of the driver has not been specified. This is because an EU Directive back in December 2012, ruled that UK insurers must charge the same price to men and women for the same insurance cover.
All results were correct at the time of writing but premiums can change frequently according to market conditions – even for the same driver. Our research is for indicative purposes only.
How can I cut the cost of car insurance?
There’s no getting out of car insurance – and we explain why it’s compulsory in our FAQs below – but the good news is, there are a number of ways to cut the cost of premiums without sacrificing cover. Here’s our round up.
Compare insurers
The risk-based pricing of car insurance means it is important to compare different insurers and policies from across the market when your current policy comes up for renewal (more on exactly when to do this below). It’s quick and easy to switch insurers. You can get all the details from your current insurer online – and a printer is not necessary.
Bear in mind during your search that some insurers focus on particular markets or types of drivers – those who have recently passed their test, for example.
Time it right
How close to your car insurance renewal date you purchase new cover can have a bearing on the price you pay, according to industry experts. It is generally thought that premiums are at their cheapest between two to four weeks before your renewal date, so timing your renewal wisely could save money.
The theory is based around simple market forces – the closer you get to your renewal date, the more likely you are to make the purchase – which means insurers can hike their prices.
Increase the excess
The compulsory excess is the first part of any insurance claim which the policyholder must pay. For car insurance this can be from £50, £100 or £200, for example. However, it can be as much as £1,500 if an insurer wants to compensate for a low premium.
Insurers also usually offer customers the option of increasing their excess – known as a voluntary excess – as a way of reducing the premium.
While this can make short-term financial sense to increase the excess, it means the policyholder is taking on more of the risk – you’ll have to stump up more if you need to claim.
When running our quotes, we settled a happy medium, ensuring the combined excess did not exceed £550.
Dump unnecessary extras
When searching for car cover, you’ll be met by a range of ‘optional extras’ which can be bolted onto the policy at extra cost. Examples include a courtesy car (if yours has to be repaired due to an accident for example), legal expenses, key cover, breakdown or windscreen cover.
If you can manage without additions like these, it should bring the premium cost down. You may already have standalone breakdown cover – even as part of a packaged bank account, for example.
Add a named driver
Sometimes adding another driver can bring down the cost of cover. However, this will depend on their driving and any claims history, with experienced and older drivers more likely to lower the premium.
However, be aware that fronting – where an older, more experienced driver falsely puts themselves down as the main driver in a bid to reduce the premium – is illegal. The first named driver on a policy must be the person who does the majority of driving in the car.
Reduce mileage
Car insurance costs are priced based on the risk to the insurer, so the more miles you drive each year the higher the risk of an incident or an accident. By reducing the miles you drive, you could bring down the cost of cover – shorter journeys that it’s possible to walk – could be a good place to start.
Fit security devices
Many insurers will reduce the cost of cover if you have security devices, such as immobilisers and alarms fitted in your vehicle. These will usually have to be specific makes and models to qualify.
Consider telematics
Often aimed at young or new drivers, with a telematics policy a telematics box – or black box – is fitted to your car which enables the insurer to monitor your driving. App-based policies are also available.
Typically the driver agrees to a certain annual mileage limit and not to drive between certain hours (11pm and 5am), for example, when the insurer considers more accidents are likely.
The telematics box – or app – then records information about the policyholder’s driving such as speed, acceleration, braking, as well as how often you drive and when. You’ll be given a driving ‘score’ reflecting how safely you drive on a consistent basis. If you manage a good score, your future premiums will be adjusted periodically during the term of the policy, meaning you will be rewarded with a lower cost for your cover.
An alternative option is pay-as-you-go insurance, which can work out cheaper than a standard policy for car owners who don’t drive often.
Typically the insurer will charge you for insurance based on how far you drive, so you’ll be charged by the mile or by the hour, for example.
Buy a cheaper, less powerful car
The cost of car insurance will be determined in large part by the value and engine power of your vehicle. Insurers put cars into different insurance groups numbered 1 to 50 and rated by a range of factors including their value, performance and any security features, as well as the cost of parts and repairs.
More powerful and more expensive makes and models of car will tend to be in the higher rated groups, as they typically cost more to repair (or replace if stolen). The higher the insurance group the higher the cost of insurance.
Consumers who want to keep a lid on the cost of car insurance should consider buying a cheaper and less powerful vehicle.
Park off-road at night
Where the vehicle is parked – both during the day and at night – can have an impact on the insurance premium.
If you have a drive or garage, ensuring you utilise them for your car can bring the risk down for the insurer, and consequently your premium.
Parking your car in a locked garage at night is likely to be viewed as the lowest risk option and could make a considerable difference to an insurance premium.
Pay the premium annually
As we set out in our quotes (above), it’s cheaper overall to pay your annual premium in one lump sum upfront rather than split it into monthly payments.
Drivers who can budget in advance and have the funds to hand come renewal time, are likely to save money – whether they stick with their existing insurer or switch elsewhere.
Haggle with your insurer
As your renewal date approaches and once you’ve searched for new deals across the market it’s also worth contacting your current insurer to see if it can beat the best new quote you’ve been given.
Often insurers will match or beat a quote – lowering their initial renewal quote – so it doesn’t lose your business.
While industry regulation means insurers can no longer charge existing customers more at renewal than they would to an equivalent new customer, there may still be savings to be made by finding a cheaper policy from a competitor – which you can then use as a bargaining tool.
Car cover and location
While there are many ways you can attempt to bring down the cost of car insurance, there are of course factors you can’t control. The following table shows the average cost of car insurance by region (October 2023).
Cheapest isn’t always best
But drivers should be wary about picking insurance based on cost alone. While price is usually the primary consideration, check cover levels as they can vary widely.
Where a policy looks particularly cheap, there might be a very high compulsory excess for example, or it could be littered with exclusions, meaning it could cost you more in the long run. While it could still be your preferred option, ensure you know exactly what cover you’re buying.
Alex Borgnis, underwriting director at LV= General Insurance comments: “Cheaper policies often come with higher fees and charges or limited cover, which means that you may have to pay more in the event of an accident. Some may also fail to provide adequate cover for your specific needs, leaving you vulnerable to financial loss if you need to make a claim.
“Misfuelling your car as an example, which can cause severe damage to the engine and be very expensive to repair – while there may be no cover for things like child seats.”
Drivers should also consider customer service and claims records. Fairer Finance carries star rankings for many car insurers, for example. Finally, the very cheapest policies may not offer a good level of customer support, leaving you to deal with the aftermath of an accident alone.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
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