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Cheapest car insurers revealed

You might think big name insurance companies would help secure you the cheapest car insurance but according to new figures that is not necessarily the case.

Smaller insurance companies offer the best deals.
Smaller insurance companies offer the best deals.

A survey of 29,000 Auto Express readers highlighted the cheapest insurers were in fact lesser known entities, with the cheapest found to be Adelaide Insurance Services. Second place went to Frizzell, the LV-owned insurer, and bronze went to Royal and Sun Alliance.

Liverpool Victoria (LV), farmer-friendly NFU Mutual, Marks and Spencer and Swift Cover represented the big names in the cheapest insurance list.

On the flip side, Kwik Fit was found to be top of the most expensive insurers list, with Lloyds TSB and Gloucestershire-based Endsleigh offering almost as poor value for money. Fourth and fifth place went to The Post Office and Diamond, respectively.

For a company that is meant to have the motorist at heart, or so its marketing would like you to believe, the AA was only found to be less expensive than Bell Direct, a part of the Admiral Group. 

Not all blame can fall on the shoulders of big insurance companies and their vast marketing spends, though. Sticking with your current insurer via automatic renewal, a practice most companies use to keep you onboard, can drive your premiums up. Motorists waste £3.1 billion a year by not shopping around at renewal time, according to MoneySupermarket. Spending a bit of time shopping around could save you as much as £404, it reported.

Pete Harrison, a car insurance expert at MoneySupermarket said it’s important to make the effort to save yourself some pain. “With many families returning home from a well-deserved summer break, household budgets are likely to be strained and it’s important people don’t just accept the renewal price from their car insurance provider,” he explained.

The 10 cheapest insurers
1. Adelaide Insurance Services (IAM Surety)
2. Frizzell (LV Frizzell)
3. Royal and Sun Alliance
4. Ageas (previously Fortis)
5. RIAS
6. Liverpool Victoria (LV)
7. NFU Mutual
8. Saga
9. Marks & Spencer
10. Swiftcover

The 10 most expensive insurers
1. Kwik Fit
2. Lloyds TSB
3. Endsleigh
4. Post Office
5. Diamond
6. More Than
7. Elephant
8. Admiral
9. AA
10. Bell Direct (part of Admiral Group)

Source: Auto Express
Image: Flickr 

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