Compare Car Insurance FAQs
Q – Does searching for car insurance affect my credit score?
A – Requesting an insurance quote itself won’t affect your credit score, but taking out a policy might.
When you seek an insurance quote—whether directly from the insurer or via a comparison website—you’ll be asked for details like your address, occupation, marital status, and any past claims. The insurer then verifies this information by checking your credit report to ensure accuracy.
However, don’t worry—this is known as a “soft search” and does not leave a lasting mark on your credit file. While you can see the search, lenders cannot, so it won’t affect your ability to obtain credit in the future.
On the other hand, if you decide to take out an insurance policy and opt to pay in monthly installments rather than a lump sum, you’re essentially entering into a credit agreement. Paying monthly is treated like a loan, where interest is added on top, so it’s considered a form of credit.
As with any credit application, this will trigger a “hard search” on your credit file, which other lenders can see, along with the credit agreement itself. While hard searches have a minor, short-term impact on your credit score, this is usually only a concern if you’re planning a significant credit application, such as a mortgage, in the near future.
Q – Why do comparison sites have different prices?
A – Comparison websites function as insurance marketplaces because they have the ability to negotiate their own rates with insurance companies. However, insurers are required to ensure that the prices on these comparison sites aren’t higher than those on their own websites. Since these negotiations are conducted independently, it can result in insurers offering different prices on various comparison platforms.
Additionally, not all comparison sites include the same insurers. Therefore, the lowest price you find may come from an insurer that is listed on only one comparison site.
To increase your chances of finding a good deal, it’s recommended to use at least two comparison sites, and more if possible.
Q – Why is it cheapest to get insurance quotes 26 days ahead of renewal?
A – An analysis of over one million quotes from January to July 2024 revealed that on the renewal day itself, a policy averages £2,277 per year. However, 26 days earlier, the average cost drops to £906 per year—a significant saving of £1,371.
Typically, the closer you are to your renewal date when getting quotes, the more of a risk you appear to insurers (some suggest it may indicate a lack of organization). However, requesting quotes too early, such as 28 days or more before renewal, can also lead to higher prices, possibly due to fewer insurers offering quotes that far in advance.
Q – What does ExEconomics Compare Car Insurance do with my data?
A – We’ve implemented many smart features—but of course, we would say that.
ExEconomics our policy is to use your data solely for the purpose you intended. This means that we use your information to provide you with the answers you seek from the tool you registered for. We won’t use your data for other purposes unless you explicitly request us to or allow us to use it across our other tools to save you from filling out forms again.
In this particular instance, you’re completing a partners questionnaire, so partners receives your data. However, under our agreement with partners, your data will only be used for generating car insurance quotes (unless you are an existing partners customer who has granted permission for other uses).
- It’s shared with insurers. When you complete the partners questionnaire, your details are shared with insurers. This allows them to provide you with a precise quote tailored to your specific situation.
- Insurers may share your data with credit reference agencies. This is to verify that the information partners shared about you is accurate and that you are indeed who you claim to be.
Insurers may also share your data with credit reference agencies. This is to verify that the information provided by partners about you is accurate and to confirm your identity. These are the primary ways we handle your data within ExEconomics Compare tool, but you can find the complete details of data usage in the partners Privacy Policy.
Q – Does ExEconomics make money out of this?
A – If a link has an asterisk (*) next to it, this indicates it’s an ‘affiliated link,’ which supports ExEconomics ability to remain free to use, as it is connected to us. Clicking through it may occasionally result in a payment or benefit for the site. However, this won’t affect your experience, and the link will never have a negative impact on the product. Additionally, our editorial content (what we write) is NEVER influenced by these links.
Even if we cannot obtain an affiliate link for a specific insurer or comparison site, it will still be included in the same way, just with a non-affiliated link.
Q – Is insurance the only way I can save on the costs of running my car?
A – Car insurance often comes with a hefty price tag, but this tool is crafted to help you find the most affordable quote available. However, cutting down on car insurance is just one of several methods to reduce your driving expenses. Our detailed guides are here to assist you in saving money in various ways:
Q – What if I’m happy with my existing insurer?
A – If you prefer to stay with your current insurance provider, leverage the findings from this tool to negotiate. Request that your insurer match the lowest price or best offer you receive. For comprehensive assistance and strategies to enhance your chances of securing a discount, refer to our guide on negotiating car and home insurance.
FAQs if you’ve used the tool before
Q – What does a ‘materially cheaper’ quote mean?
A – If Direct Line is indicated as ‘likely to offer a quote that is significantly cheaper,’ it means that according to our analysis of independently updated insurance industry data, your quote from Direct Line is expected to be either £10 less or 5% cheaper (whichever is smaller). For details on how we categorize this data into different profiles for comparison, refer to the FAQ below.
We use this threshold because we understand that taking the time to visit another site and input your details requires effort. We aimed to quantify that effort—how much you would need to save to make it worthwhile.
While we could have set ‘significantly cheaper’ as just a 1p difference, it’s unlikely that many would spend several minutes filling out a form for such a small saving. Therefore, we decided that £10 or 5% off the average quote for your profile represents a more reasonable amount—making the effort more justifiable.
So, if your results suggest that Direct Line is likely to offer a significantly cheaper quote, it indicates that, based on our analysis, Direct Line probably offers a lower quote than MoneySupermarket for people with a profile similar to yours.
Keep in mind that this does not compare the real-time benchmark quote from this tool with a real-time quote from Direct Line. The likelihood of a ‘significantly cheaper’ quote is based on monthly-updated industry data and reflects how often Direct Line is typically cheaper than MoneySupermarket for people in your profile group.
Q – How do you know how likely I am to get a materially cheaper quote from Direct Line?
A – It’s important to understand that this tool does not directly compare the lowest quote you receive from filling out the MoneySupermarket form with a real-time quote from Direct Line.
Instead, we provide a benchmark quote that helps you determine if our suggested tips and tricks can indeed lower your quotes. By applying these strategies, you can verify if they lead to cheaper rates for you.
When it comes to assessing whether Direct Line is likely to offer a significantly cheaper quote, a different approach is used. Comparing a live quote from one comparison site to historical data from another insurer wouldn’t be accurate. Hence, we avoid this direct comparison.
For evaluating whether Direct Line might be substantially cheaper, we use updated monthly data from both MoneySupermarket and Direct Line. Here’s how it works:
We take some of the information you enter into the MoneySupermarket form to match you with a specific risk profile, defined by an independent insurance analyst company. We then analyze which of MoneySupermarket or Direct Line provided the lowest quotes for your profile during that month.
If Direct Line is likely to offer a better rate for your profile, we indicate that it might be ‘materially cheaper’ than MoneySupermarket (though this doesn’t compare the actual benchmark quote you receive). We suggest obtaining quotes from Direct Line if this is the case. ‘Materially cheaper’ means the site is likely to be either £10 or 5% cheaper—whichever is smaller—compared to MoneySupermarket for your profile.
Conversely, if MoneySupermarket is expected to have the lowest quotes for your profile and Direct Line is not predicted to be significantly cheaper, we recommend checking Direct Line only if you have extra time and want to perform a thorough comparison. We can’t guarantee Direct Line will be cheaper, but we base our recommendations on the latest industry data.
An independent company collects this data by running monthly quotes on major comparison sites and insurers’ websites across various risk profiles. This data is processed and verified before being provided to us and is uploaded to the tool within 10 days of collection.
We include links to other comparison sites within the tool, but we may not always have their data. In such cases, we suggest checking those sites if you have the time, and provide a general indication of which might be cheapest based on independent insurance industry data, similar to our Cheap Car Insurance guide on the ExEconomics site.
Q – Why can’t you give me an actual price for Direct Line or the comparison sites you mention in the Compare tool?
A – We can’t legally obtain and share price information from comparison websites without their authorization. While we would like to feature pricing from major comparison platforms in our search tool, their consent is required.
MoneySupermarket, was a logical starting point for us. We’ve reached out to other prominent comparison sites—some have declined, while others are still considering. Currently, we’re collaborating with one insurer, so soon, if you use our tool, some of its questions will be pre-filled for you.
As per the ExEconomics Editorial Code, we still reference other comparison sites that may offer lower prices and suggest an order in which to try them, as we’ve done for years in our primary car insurance guide.
We aim to more fully integrate comparison sites into this tool. However, achieving this will require extensive technological and data resources due to the different question sets, compliance standards, and publishing methods used by these sites, which frequently change. This will involve significant effort and ongoing management, but we believe it will ultimately benefit you. Stay tuned for updates.
Q – Why are the comparisons not showing many quotes?
A – Here are a few possible reasons for this:
- You’re searching too early. If you seek car insurance more than about four weeks before it needs to begin, many insurers may not provide quotes for such a distant start date. Consider checking again around three weeks before your insurance is set to commence.
- You have unusual circumstances. This could include having points on your driving record, owning a classic or high-value car, or having medical conditions that pose a unique risk.
- You can’t be (easily) matched to your credit reference agency records. This situation can arise if, for example, you’ve recently changed your name due to marriage but haven’t updated it with the electoral roll or with banks and lenders. Insurers rely on these identity checks, and if they cannot verify your details, they may choose not to provide a quote.
If you’re struggling to find affordable – or indeed any – cover, try a specialist insurance broker. You can find one through the British Insurance Brokers’ Association website.
Q – What is a ‘telematics’ device?
A – Telematics insurance adjusts your premiums based on your driving behavior. This system involves installing a device, often called a black box, in your vehicle to track how you drive. The better your driving, the lower your insurance cost. Alternatively, some insurers use a mobile app to monitor your driving instead of installing a physical device.
If you’re a skilled driver, a telematics policy could save you hundreds of pounds on your insurance. However, poor driving habits might lead to higher premiums.
Insurance companies might also consider factors beyond just your driving skills, such as the time of day you drive or the distances you cover. Nighttime driving and frequent long journeys can increase your premiums.
When receiving quotes that include a telematics device, make sure you understand exactly what metrics are being used to assess your driving.
Q – What’s the difference between the voluntary and compulsory excess?
A – The compulsory excess is determined by your insurer and represents the amount you must pay out of pocket if you make a claim. This amount is typically set at either £100 or £250.
On the other hand, the voluntary excess is something you choose yourself. Generally, opting for a higher voluntary excess results in a lower premium.
However, it’s important to be cautious with your choice of excess. In the event of a claim, you must cover the total of both the compulsory and voluntary excess amounts before the insurer will contribute. For instance, if your compulsory excess is £250 and your voluntary excess is also £250, you will need to pay the initial £500 of any claim. Any amount beyond this will be covered by the insurer.
Q – How do I know which policy is right for me?
A – Once you’ve found a cheap quote that you’re happy with, there are a few things to check…
- Double-check the quotes. Visit the provider’s website to view the complete quote. Note that some comparison sites might make certain assumptions to expedite the search process.
- Check if the policy is suitable for your needs and whether you need any add-ons. There are always additional options available, so ensure that the policy you select includes only the ones you desire.
- Courtesy car. If you rely heavily on your car and can’t manage without it while it’s being repaired, consider choosing a policy that includes a courtesy car as a standard feature or an affordable add-on. Be sure to verify details such as the type of car provided, the timing of when you’ll receive it, and the duration of its availability.
- Breakdown cover. Some insurance companies offer a basic policy as a promotional incentive. However, if this policy isn’t the best fit for you, it’s usually more cost-effective to purchase the least expensive standalone breakdown cover. Do compare.
- Protected no-claims discount. A no-claims discount is exactly what it sounds like: it provides a set reduction on your premium, though it doesn’t guarantee that your rate won’t increase. If the discount is protected, you can file a claim and still retain the discount for future renewals, provided you continue with your current insurer.
- Legal costs cover. This can assist in recouping expenses or damages you face due to a claim where you’re not responsible. For instance, it might cover the deductible you need to pay, compensation for lost wages, or personal injury following an accident caused by another driver. This type of coverage is often overlooked but can be quite valuable.
- Key cover. This policy provides coverage for the cost of replacing lost or stolen keys. Before purchasing, verify whether your existing car breakdown policy includes this coverage.