Revealed: The Top Rated Car Insurance Providers

A survey of 55 car insurance companies shows the five providers that were awarded four and five stars.

Insurers LV, NFU Mutual, Direct Line, Churchill and Aviva were awarded the Whole? The Consumer Group’s Recommended Provider status surveyed more than 2,400 customers who had made claims over the past two years and rated 78 insurance attributes.

Vendors were evaluated on characteristics such as deductibles, management fees, and how long each insurer guarantees the repairs they arrange.

All recommended vendors received either four or five stars out of five for value for money, fair treatment of long-standing customers, good handling of inquiries, and clarity of policy.

LV takes first place, Halifax at the bottom

LV received the highest customer rating of 79%. It also achieved the best policy score at 77%. The company has been lauded for guaranteeing its repairs for the lifetime of the vehicle and was one of only 11 to offer the policyholder a temporary replacement vehicle if theirs was stolen.

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

At the bottom of the auto insurer rankings was Halifax with an overall score of 60%. It received two stars out of five for the ease of managing the policy online.

Esure received the second-lowest overall score of 63% and was also penalized for not being easy for customers to manage online.

Overall, 88% of auto insurance applicants felt they were getting good value for their money, while 61% felt they would pay about the same for coverage with their current insurer as they would with other providers.

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Price walking takes a long walk

Since January 2022, the Financial Conduct Authority has prevented insurance companies from offering special discount rates for car insurance to new customers. The aim was to end the widespread practice of “price walking”, in which customers were charged more the longer they remained loyal to their insurer.

But there are a number of factors, including the cost of repairing vehicles caused by semiconductor shortages, that industry leaders argue have pushed up costs and caused insurers to hike premiums.

Which? urges customers to shop around before making a new deal.