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Revealed: The top-rated car insurance providers

Samantha Partington
Written By:
Samantha Partington
Posted:
Updated:
15/02/2023

A survey of 55 car insurance policies reveals the five providers that have been singled out for four and five star ratings.

Insurers LV, NFU Mutual, Direct Line, Churchill and Aviva were awarded the Which? Recommended Provider status after the consumer group surveyed more than 2,400 customers who had claimed in the last two years and rated 78 insurance policy features.

Providers were rated over features such as excess charges, admin fees and how long each insurer will guarantee the repairs it arranges.

All of the recommended providers 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 takes top spot, Halifax at the bottom

LV was awarded the highest customer score, receiving 79%. It also achieved the best policy score, reaching 77%. The firm 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 was stolen.

NFU Mutual was praised for not charging a cancellation fee or interest if customers wanted to pay monthly. It came second overall with a customer score of 78%.

At the bottom of the car insurer rankings was Halifax, which received a total score of 60%. It was given two out of five stars for ease of managing the policy online.

Esure was given the second-lowest total score of 63% and also penalised for not being easy for customers to manage online.

Overall, 88% of car insurance claimants felt they were getting good value for money, while 61% believed they were paying about the same for cover with their current insurer as they would be offered elsewhere.

Price walking takes a long walk

Since January 2022, insurance companies have been prevented by the financial watchdog the Financial Conduct Authority from offering new customers special discounted rates for car insurance. The objective was to end the widespread practice of ‘price walking,’ which meant customers were charged more the longer they stayed loyal to their insurer.

However, there are a range of factors, including the cost of repairing vehicles caused by a shortage of semiconductors, that industry leaders argue have increased costs and led to insurers pushing up premiums.

Which? is urging customers to shop around before taking out a new deal.