Best and worst car insurers 2024

Which are the most reliable car insurers, delivering the best value for money? And which should you avoid purchasing cover from?

Car insurance is just one of a host of additional costs that motorists need to consider. 

And just like everything else at the moment, car insurance has been getting more expensive recently.

Figures from CompareTheMarket show that the cost of a typical annual car insurance premium hit £891.70 in February 2024. 

That’s up £279.24 (45.5%) from the same point last year.

Meanwhile, those opting to spread the cost out over monthly instalments are now paying an average of £937.99 for their policies.

This is up 42% over the £660.11 level in February 2023.  

But what makes a good car insurance policy? And which are the best car insurers?

That’s what the consumer champions at Which? set out to establish in their annual car insurance research, which brings together both ratings from customers of each insurer with the Which? analysis of the insurer’s policies.

The best and worst car insurers

Let’s take a look at the top five car insurers according to the Which? study:

It scored five out of five for the clarity of policy and dealing with queries, and four out of five for value for money.

Which? praised LV for being one of the few insurers to guarantee repairs for a vehicle’s lifetime, as well as offering a replacement car if the insured vehicle is stolen.

Which? also highlighted that it offered protection for no-claims discounts against an unlimited number of claims.

It’s worth noting that Which? picks out ‘recommended providers’ for financial products, based on their analysis of the firm’s practices.

Both NFU Mutual and LV have achieved that accolade.

And here are the car insurers at the bottom end of the table according to Which?:

That said, there are some eye-catching low scores on individual areas.

RAC, for example, managed just 52% on the nuts and bolts of its policy.

What makes a good car insurer?

Studies like this are useful in that they can help us pinpoint the insurers that stand out from the crowd, but they also provide an opportunity to question what we want from an insurer.

What makes one insurer good compared with its rivals?

Price is a crucial component. Money is tight, and so you want to feel like you are getting fair bang for your buck from your insurance policy.

There’s a distinction between being cheap and being value for money though ‒ there’s no point signing up for cover that has the absolute lowest price around, but offers little to no help should the need arise to make a claim against the policy. 

With value for money, you at least feel like you are getting what you pay for, even if that actual price is higher than may be the case with a rival insurer.

Having a clear and understandable policy is also crucial.

As anyone who has ever shopped for car insurance will know, the cover offered by rival firms can vary significantly, from the cash payouts on offer to what’s included as standard, such as the provision of a replacement vehicle.

Insurers that clearly outline what is ‒ and isn’t ‒ included in their policy will always be highly valued.

After all, the last thing you need following an accident is to discover that your policy isn’t quite what you thought it was when you bought it.

Another big factor in the quality of an insurer will be how they are to deal with in the event of a claim.

Again, there can be huge differences between insurers ‒ we have all heard horror stories about insurers who seem to go out of their way to avoid making a payout, or even giving you a fair hearing about your situation.

This isn’t the case across the board though, with rival insurers establishing a strong reputation for taking a more considered approach.

It’s important to bear these factors in mind when shopping around for a car insurance policy.

While price will always catch the eye, there has to be more to selecting the right cover for you than simply looking at how much it will cost.