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In June 2025, a study carried out by Consumer Intelligence revealed that over half of drivers were able to cut costs on car insurance by using comparison platforms like Compare the Market.¹
If you're in the market for new car insurance, here's a comprehensive guide covering everything you need to know—from required details to cost factors and choosing the right coverage type.
Essential Details for Getting a Car Insurance Quote
When requesting quotes from insurers, be ready to share the following:
-
Vehicle Information & Usage
Have your car’s registration number handy—or provide the make, model, and year. You’ll also be asked how the car is used (personal or business) and your estimated annual mileage. -
Your Personal Profile
Full name, age, residential address, occupation, and job industry are required. If you're adding other drivers, similar info will be needed for them too. -
Driving Record & Licence Details
Your driving history, licence number, and any no-claims bonus will all influence your premium.
Why Car Insurance is a Legal Must-Have
If you're driving on UK roads, insurance isn’t optional—it’s a legal obligation. Failing to insure your vehicle can result in:
- Fines starting from £300
- 6 penalty points on your licence
- Possible court summons, unlimited fines, and even disqualification
Beyond legal reasons, insurance also safeguards you financially if your vehicle causes damage, injury, or loss.
Understanding the Types of Car Insurance Cover
There are three core insurance levels available in the UK—each providing a different scope of protection:
| Cover Type | What's Included | Limitations / Considerations |
|---|---|---|
| Comprehensive | Covers damage to third parties, theft, fire, repairs to your own car, and write-offs | May exclude driving others’ vehicles; often excludes theft if car was left unsecured |
| Third‑Party, Fire & Theft | Covers third-party liability, fire damage, and car theft | Does not cover your vehicle repairs or your medical expenses if you're at fault |
| Third‑Party Only | Legally required minimum: covers harm or damage caused to others | No protection for your own car; fewer options available, often at a higher cost for high-risk drivers |
Average Premium Costs (June 2025 Data)
Based on recent figures, here’s what the typical annual premium might look like depending on the cover level:
- Comprehensive: Approx. £636 per year
- Third‑Party, Fire & Theft: Around £1,104 annually
- Third‑Party Only: Roughly £1,497 a year
These rates fluctuate based on various elements such as age, driving history, car model, and location.
Factors That Affect Your Insurance Premium
Here are key influences that can raise or lower your quote:
- Age and driving history: Young or new drivers are seen as riskier and typically pay more.
- Car value and insurance group: More expensive or powerful vehicles result in higher premiums.
- Usage type: Whether you drive for personal or business use, and how far you drive annually.
- Driving record and no-claims bonus: Clean records reward you with cheaper premiums.
- Level of coverage: Higher coverage means more protection—but also a bigger price tag.
- Optional extras: Add-ons like legal cover, roadside assistance, or windscreen repair can add up.
Why You Should Always Compare Quotes
Using quote comparison tools can lead to significant savings. According to the June 2025 study, 51% of drivers paid less when they used comparison sites—and many saw savings of hundreds of pounds.
Frequently Asked Questions (FAQ)
Q: Can I drive my car occasionally without insurance?
A: No, insurance is mandatory even if the car is rarely used. The law requires minimum third-party cover for any vehicle on public roads. Driving without it can bring hefty penalties.
Q: Is comprehensive insurance always the priciest option?
A: Surprisingly, no. For many careful drivers, comprehensive policies can be cheaper than third-party options, especially if their car is in a lower risk category and they have a no-claims discount.
Q: How much can I save with a no-claims bonus?
A: It varies by provider, but multi-year no-claims histories can unlock considerable discounts. The more years without claims, the bigger the savings.
Q: Why do younger drivers pay more for insurance?
A: Statistically, younger and less experienced drivers are more likely to be involved in accidents, so insurers charge higher premiums to offset the risk.
Q: What should I double-check in my insurance policy?
A: Look closely at what's *not* covered—such as exclusions for unlocked car theft, driving other vehicles, hidden charges, and excess fees. Always read the fine print before committing.
¹ Source: Consumer Intelligence, June 2025 — 51% of users saved money using insurance comparison platforms.
