What is car insurance and why do I need it?

Car insurance covers you if your car is stolen or involved in an accident, and protects other people if you injure them or damage their vehicle or property. It's a legal requirement to have at least third party cover to drive on UK roads. Driving without insurance can lead to a fine, penalty points and possibly a driving ban.

What factors affect the cost of car insurance?

Insurers price on risk. Factors include your age and driving experience, where you live, your job, how many miles you drive and the type of car. Insurers are not allowed to set prices based on gender.

How do I estimate my annual mileage?

Work out roughly how many miles you drive each week and multiply by 52, or compare readings on your MOT certificates or service records. Give an accurate figure, because underestimating your mileage could affect a claim.

Is it better to pay annually or monthly?

It depends on your circumstances and what you can afford. Paying annually is often cheaper overall, because monthly instalments may include interest.

How do I work out my car's value?

A car's value depends on its age, mileage, make, service history, modifications and condition. Looking at used car listings for similar models in similar condition can give you a reasonable guide. Try to be as accurate as possible.

Insurance basics

Car insurance

A plain guide to car insurance in the UK: what it is, the details insurers ask for, the three levels of cover and what affects the price.

Choosing car insurance can feel overwhelming, with lots of policy types and options to pick from. This guide explains the basics in plain English: what you'll be asked for, the levels of cover available and what affects the price.

There are specialist policies for many kinds of driver, including learner drivers, young drivers, drivers with convictions and owners of modified or imported cars. Whether you're renewing or insuring a new car, it helps to understand what you're buying.

What details do I need to provide?

When you ask for a car insurance quote, you'll usually be asked for the following.

Details of the car

You don't usually need to know the exact model. Your registration number is normally enough to look up the details.

No claims bonus (NCB)

You'll be asked how many years of no claims bonus you have. Your current insurer can give you proof if you need it.

Named drivers

If anyone else will drive the car, you'll need their personal and licence details so they can be added to the policy.

Licence details

You'll be asked what type of licence you hold and how long you've held it.

Previous claims

You'll need to say whether you've been involved in any accidents or made any claims in the last five years.

Driving convictions

If you have any penalty points or disqualifications, you'll need to give the full details.

What are the different levels of cover?

There are three levels of car insurance cover.

Fully comprehensive

This is the highest level of cover. It includes everything in third party, fire and theft, and also covers damage to your own car, even if an accident was your fault. Check the policy for extras such as medical expenses.

Third party, fire and theft

This covers you if you're responsible for injury to other people, including passengers, or damage to their property. It also covers your car if it's stolen or damaged by fire. It won't pay for repairs to your own car if you cause an accident.

Third party only

This is the most basic level of cover and the minimum required by law. It pays for injury to others and damage you cause to other vehicles and property, but there is no cover for your own car.

Official guidance

You can read the rules on vehicle insurance on GOV.UK. If you have a complaint about an insurer that you can't resolve, the Financial Ombudsman Service may be able to help.

Other cover we can help with

Kompare doesn't currently offer quotes for car insurance. We can help with some related cover, including learner driver insurance, young driver insurance, convicted driver insurance, modified vehicle insurance, Japanese import insurance and van insurance. See how we work for more.