# How to compare car insurance in the UK > Cars & motoring · Last updated 4 July 2026 Canonical HTML: https://moneyguide.org.uk/cars-motoring/compare-car-insurance-guide/ Markdown mirror: https://moneyguide.org.uk/cars-motoring/compare-car-insurance-guide.md ## Quick answer Compare car insurance on cover level (third-party vs comprehensive), excess, add-ons, mileage and named drivers — not headline price alone. Match like-for-like quotes 20–30 days before renewal; FCA rules since 2022 prevent loyalty penalties on renewals. Car insurance is legally required but premiums vary sharply between insurers for the same driver. Comparison sites help, but understanding cover types, excess and no-claims bonus protection stops you buying inadequate or duplicated cover. ## Key facts - Legal minimum: third-party cover for injury and damage to others - Comprehensive can sometimes cost less than third-party for higher-risk profiles - FCA banned renewal price-walking in 2022 — new and renewing customers must get equivalent deals - Insurance groups 1–50 affect premium — check your car's group before buying - Comparison quotes use soft credit searches — applying triggers a hard search ## Matching cover levels Third-party only meets the legal minimum. Third-party fire and theft adds protection if your car is stolen or burns. Comprehensive covers accidental damage to your vehicle plus third-party liability — and often includes windscreen and legal expenses. When comparing, ensure each quote includes the same optional extras: courtesy car, legal cover, breakdown, protected no-claims bonus. A £50 cheaper quote without courtesy car may cost more after an accident. ## Excess, mileage and drivers Voluntary excess is what you choose on top of compulsory excess — higher voluntary excess lowers premium but raises your cost when claiming. Annual mileage must be accurate. Underestimating mileage can void claims; overestimating inflates premium. Named drivers must genuinely use the car. Fronting — a parent insuring a car mainly driven by a child — is fraud. ## Comparison tactics Quote 20–30 days before renewal — some insurers price more favourably outside the final week. Check direct insurers not on comparison panels. Telematics suits careful young drivers. Multi-car policies help some households; separate policies sometimes still win. Pay annually to avoid instalment interest. See how to cut car insurance for renewal tactics. ## Frequently asked questions ### Does comprehensive always cost more? No. Comprehensive can be cheaper because lower-risk drivers historically chose comprehensive, skewing third-party pools toward higher-risk profiles. ### Will comparing hurt my credit score? Comparison site quotes are soft searches. A hard search applies only when you buy a specific policy on credit or monthly instalments with a credit check. ### Should I protect my no-claims bonus? Protect it only if the extra premium is less than the discount you would lose from one at-fault claim — typically one or two years' discount. ## Primary source https://www.gov.uk/vehicle-insurance ## Related - [Car insurance explained](https://moneyguide.org.uk/cars-motoring/car-insurance-explained/) - [How to cut car insurance](https://moneyguide.org.uk/cars-motoring/how-to-cut-car-insurance/) - [No-claims bonus explained](https://moneyguide.org.uk/cars-motoring/no-claims-bonus-explained/) - [Featured offers*](https://moneyguide.org.uk/offers/#compare-car-insurance) --- Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.