Compare Cheap Car Insurance for London Drivers

NimbleFins car insurance experts studied data from over 500 quotes and found, importantly, that the cheapest car insurance in London can be up to 93% cheaper than the most expensive quotes. This finding is supported by the comprehensive survey by NimbleFins' comparison engine partner, which demonstrated that comparing car insurance quotes can save you up to £515.

• Which Car Insurance Companies are Cheapest in London?
• Cheap Car Insurance Companies by London Borough
• Average Cost of Cheap London Car Insurance by Borough
• Methodology

Cheap Car Insurance Companies in London

NimbleFins car insurance experts studied data from hundreds of quotes and found that the cheapest car insurance in London can be up to 93% cheaper than the most expensive quotes.

In London, the average cost of cheap comprehensive car insurance for our sample driver can range wildly compared to the national average which is now £559. Rates can vary highly by area. Let's try to understand why by digging into some risk factors that contribute to car insurance rates. For this analysis, we'll look at:

First, how does London compare to other regions? London ranked riskiest out of the 9 regions in England. London has the highest rate of collisions per mile driven (1404 per billion miles), the highest rate of vehicle offences (e.g. car thefts) at 9.1 per 1,000 people but the LOWEST rate of average points per licence (0.049) as you can see in the table below.

In the final column, we include an average of the how far each risk factor is from the average across geographies. This is just a rough way to get an idea of how risky one area is compared to another overall—and provides a tool for ranking the regions. As you can see, London overall is the most risky, in terms of rate of collisions and vehicle thefts.

Car insurance rates will be higher or lower in an area if insurers view the risk factors as being higher or lower. This could be a combination of odds of a claim and also typical payouts per claim (for example, due to higher or lower average car values). We've just looked at a few factors here.

Car insurance quotes London

Car insurance for London drivers can be tricky because some companies put a big premium on city drivers. Why? There can be a higher risk of both accidents and theft in some London areas. And each company has its own pricing model, which will price these risks differently.

Because of this, comparing quotes is more important than ever if you live in London—for example, a company that offers quite reasonable quotes in a different area might charge a lot more in London, so one of the best ways to save money is by comparing quotes before you buy or renew.

Cheap Car Insurance Companies in each London Borough

Where you live in London can have a major impact on the price you pay for car insurance. To show how prices change across town, we compare these same three car insurance risk factors above across local areas in London. Which areas are the riskiest, and are therefore more likely to have higher car insurance rates? As above, we compare rates of collision, vehicle crime and drivers with points.

The "riskiest" area overall is Westminster. With the highest vehicle offence rate, the odds of a car theft claim are highest in Westminster. The worst area for collisions is Hackney. Expect higher car insurance rates in these areas.

The "least risky" local area overall is Kingston upon Thames. The area has the lowest metrics for collision rates and car theft rates, which are two key factors when it comes to car insurance risks and premiums. Sutton is the next "least risky" according to these metrics. Expect lower car insurance rates in these areas.

What is considered "Vehicle Crime"? Vehicle crime essentially includes theft from a vehicle and theft of a vehicle. In general, theft from a vehicle is 5X more common than theft of a vehicle.

Comprehensive cover is often the best value. We found that Third Party Only cover can cost 2X as much as Comprehensive cover in London, making Comprehensive potentially much better value for money. If you're looking to save money on car insurance in London and think you can do so by getting TPO cover, be sure to check prices for higher tiers of cover as you could get more cover for less money.

London, England Car Insurance Brokers

Independent car insurance brokers can be useful resources for London drivers who want to discuss their insurance options, need specialist cover or who simply aren't comfortable buying a policy online or even perhaps over the phone.

However, you might pay more to a broker—they may work only with a selection of insurance companies and may not be able to find the cheapest plan for you, plus they often charge an arrangement fee and/or higher admin and cancellation fees.

If you decide to use a broker, be sure to enquire about the setup/arrangement fees, admin fees, renewal fees and cancellation fees before buying a policy.

Methodology

To determine how car insurance rates can vary across London, we gathered data on collision rate from the Department for Transport, points on licences from the DVLA and rates of vehicle crime from police forces (via the Home Office).

We separately looked for cheap car insurance quotes for London. It is notable that some brands only offer cover in certain neighbourhoods, perhaps in areas from which they expect lower claims.

To find rates for your car insurance, click below:

Note regarding savings figures: *For information on the latest saving figures, pay-less-than figures, and pay-from figures used for promotional purposes, please click here.