Yahoo Finance Revealed: The best car insurance policies
With premiums up and the cost of living crisis continuing to hit household budgets it is important to find a car insurance policy that won’t take you for a ride.
Consumer body Which? has analysed dozens of insurance providers and surveyed thousands of customers to find out which policies offer the best cover and service — as well as what they can offer consumers on tighter budgets
Five insurers, LV, NFU Mutual, Direct Line (DLG.L), Churchill and Aviva (AV.L), were awarded the Which? Recommended Provider (WRP) status. All of the WRPs received either four or five stars out of five for providing good value for money, fair treatment of long-standing customers and how well they dealt with queries and clarity of policies.
LV was awarded the highest customer score, at 79%. It also scored the best policy score, achieving 77%. It was commended for guaranteeing its repairs for a vehicle’s lifetime and was one of only 11 to offer the policyholder a temporary replacement car if theirs is stolen.
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NFU Mutual has received WRP status for each year the survey has run and was one of only two providers Which? analysed that does not charge a cancellation fee or interest if customers want to pay monthly. It came second overall with a customer score of 78%.
Coming at the bottom of the car insurer rankings was Halifax, which received a total score of 60%. It was given just two out of five stars for ease of managing the policy online. Esure was given the second-lowest total score of 63%. It also received just two stars for the ease of managing the policy online.
Jenny Ross, Which? money editor said: “With premiums up and the cost of living crisis continuing to hit household budgets, our research shows that insurance customers don’t necessarily have to sacrifice quality for affordability.
“Taking the time to find a policy that’s right for you could save you money, as you’re less likely to end up paying for cover you don’t need.
“For those who aren’t satisfied with their current provider, it could be time to haggle or switch to get a better deal.”
A third (35%) of LV claimants surveyed and three in 10 (29%) Direct Line customers were more likely to feel they were paying a less expensive price compared to what was on offer elsewhere. A quarter (26%) of Churchill customers reported this, which was in line with what was typical across all providers.
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Overall, nine in 10 (88%) car insurance claimants felt they were getting good value for money, according to 1,858 claimants questioned about pricing and value in the survey.
Six in 10 (61%), believed they were paying about the same for cover with their current insurer as they would be offered elsewhere. A quarter (26%) believed they were getting a less expensive price, while one in 10 (12%) felt they were paying a more expensive price.
Tesco Bank (TSCO.L) customers, around four in 10 (44%), were most likely to say they were paying less than they would elsewhere, while AA customers were most likely to say they were paying a higher amount (25%).
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