Car insurance

Car insurance prices are high because costs for car insurers are high. In the first three months of 2025, UK car insurers paid out £3.2 billion^{^} for car insurance claims, the highest amount since the Association of British Insurers started collecting data in 2013.

These costs have since dipped - car insurers paid £2.9 billion^{^} for claims in the first quarter of 2026. However, repair costs, which make up the majority of costs, have continued increasing. There are a few reasons for this:

• Cars are becoming equipped with more complex technology that is harder to replace

• Electric vehicles, which are more expensive to repair, are becoming more common (and will become more so as the UK phases out new petrol and diesel cars)

• Global trade issues sometimes impact the time it takes to source spare parts

• There is a 'critical skills shortage^{^} ' of mechanics, so there are fewer people available to carry out the repairs

• Inflation, and particularly fuel prices, are still rising, and this pulls up costs across the board as companies pay more for wages, utility bills, and so on

Longer repairs also have some knock-on cost impacts for car insurers. For example, they need to spend more money on courtesy cars as people rely on them for longer.

Car insurers price policies based on risk, and different drivers will have different risk profiles. Your risk profile is based on the overall rate of claims for your demographic group, car type, or driving activity. For example, more car incidents happen in urban compared to rural areas, so you will generally pay more for your car insurance if you move from the countryside to the city.

However, different insurers use different pricing, marketing and risk models, and offer different levels of cover, excess, add-ons and features. That means quotes can vary significantly even for the same driver. That's why it's worth shopping around for your quote; you may find the same cover being offered for a lot less.

Yes, there are different types of car insurance designed for drivers with specific circumstances and risk profiles. For example, Marshmallow focuses on drivers who have moved to the UK, By Miles specialises in low-mileage cover, Saga offers policies for over-50s, and Marmalade targets young drivers.

Specialist insurers may offer more competitive prices for their target groups or include features that particularly suit their needs.

However, there are some personal characteristics that UK car insurers cannot factor into prices or policy restrictions. For example, they cannot just sell (or refuse to sell) car insurance for women or car insurance for disabled drivers.

However, you can find car insurers who tailor their marketing towards these groups and whose policies include features they think will particularly benefit a specific audience. For example, car insurers like Sheila's Wheels and Diamond focus their marketing on female drivers and include features like child seat cover and handbag cover in their policies.

You can contact your car insurer using the details in your policy documents, typically by phone, email or through your online account. Most insurers have a dedicated 24/7 claims helpline for new claims.

If you bought your policy through MoneySuperMarket, you’ll still usually need to contact the insurer directly for changes or claims, rather than going through us.

If you bought your car insurance through MoneySuperMarket, you can find your policy information by logging into our website or app. Your active policies will be shown on your dashboard.

Alternatively, you can generally find your car insurance policy by logging into your insurer's website, online portal or app.

To make a change to your car insurance policy, you’ll usually need to contact your insurer directly, either through your online account, by phone or via their app. Common changes include updating your address, mileage, named drivers or how you use your car.

Keep in mind that changes can affect your premium. For example, if you started driving to work and changed your car's class of use from 'social only' to 'social and commuting', your car insurance price will on average increase from £480.08^{^} to £769.42^{^} .

Many insurers will also charge an admin fee, usually in the £20-£60 range.

It’s best to update your details as soon as possible after a change, as incorrect information could affect your cover or any future claims.

Yes, you can cancel your car insurance at any time but you may have to pay a fee.

All insurers must offer a 14-day cooling-off period when you first take out a new policy. If you cancel during this, you’ll usually only be charged for the days you were insured. Some insurers may also charge a cancellation or admin fee, typically between £20 and £60.

If you’re cancelling after the cooling-off period, you’ll normally receive a pro-rata refund for the unused part of your cover. For example, if you cancel halfway through an annual policy, you’ll get back around half of what you paid - minus any fees. Add-ons such as breakdown cover or legal protection are often non-refundable once they’ve started, so check your policy documents carefully.

The 14-day cooling-off period usually only applies when you first buy a new policy, not when you renew. Once a renewal has begun, it’s treated as a new 12-month contract, so normal cancellation terms apply.

If you pay by monthly direct debit, don’t cancel your payments before confirming with your insurer that your policy is cancelled, otherwise it could negatively affect your credit record.

The main exceptions when you don’t need car insurance are:

• Your car is off the road and declared SORN

• Your car has been scrapped, stolen or exported and you have notified the DVLA

Otherwise, it is a legal requirement that you have at least third-party car insurance. Police can issue an on-the-spot fine of £300 and put 6 penalty points on your licence. If you are taken to court you could face unlimited fines and disqualification from driving.