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# Allianz Breakdown Cover: UK Car Insurance Guide
- URL: https://www.kaeltripton.com/compare/allianz-breakdown-cover/
- Published: 2026-05-24T10:54:09.000Z
- Updated: 2026-11-13T09:30:25.000Z
- Description: Allianz Breakdown Cover: direct answer using UK Road Traffic Act, FCA rules and real market context.
- Author: Chandraketu Tripathi
- Tags: format-review, Insurance, Car & Driving, #section-compare, Breakdown Cover, compare-breakdown-cover

Last reviewed: May 2026

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**Quick answer:** Allianz is a major insurer in the UK full market market. Global insurer; UK car insurance through Allianz Insurance UK. Always check the Financial Conduct Authority register at register.fca.org.uk to confirm current authorisation before buying.

**Allianz:** Global insurer; UK car insurance through Allianz Insurance UK. This guide explains how Allianz fits the UK car insurance market, the standard cover types and protections, and how to compare and complain.

Like all UK motor insurers, Allianz is regulated by the Financial Conduct Authority. The FCA Pricing Practices Review (PS21/5, in force from 2022) prevents the "loyalty penalty": renewal prices for an existing customer cannot be higher than the equivalent new-customer price for the same risk.

## Cover levels with Allianz

UK car insurance comes in three statutory levels: Third Party Only (the legal minimum under the Road Traffic Act 1988), Third Party Fire and Theft, and Comprehensive. Most Allianz customers buy Comprehensive cover, which includes accidental damage to your own vehicle, third-party liability, fire and theft, and (with most policies) windscreen cover and a courtesy car.

Policy schedules are the binding contract; the IPID (Insurance Product Information Document) gives a standard summary required by FCA rules. Read both before buying.

Voluntary excess (which you choose) plus compulsory excess (set by the insurer for the risk) together form what you pay in a claim. Choose a voluntary excess you can actually afford.

## How premium pricing works at Allianz

UK car insurance premiums reflect: driver age and experience, no claims bonus, claims history, vehicle group (Group 1-50 set by Thatcham Research), postcode, occupation, annual mileage, overnight parking arrangement, and any modifications.

Insurance Premium Tax (IPT) is added at 12 per cent standard rate on top of the underlying premium. IPT is a government tax, not an insurer charge.

Monthly Direct Debit insurance is effectively a credit agreement and attracts interest (often 20-30 per cent APR). Annual payment avoids the interest.

## No claims bonus and claims handling

No Claims Bonus builds at one year per claim-free year, normally up to 9 or 10 years maximum. Allianz transfers NCB between insurers when you switch; you may need proof from the previous insurer.

Protected NCB (an optional extra) limits the NCB reduction after a claim. Different insurers protect NCB differently; check the wording.

Notify Allianz of any incident as soon as possible even if you do not intend to claim. Most policies require notification within a specified time (often 48 hours); failure to notify can invalidate the policy.

## Complaints, the FOS and the Motor Insurers' Bureau

Complain to Allianz in writing first. Under FCA rules, insurers have eight weeks to issue a final response. If the response is unsatisfactory or none is received in time, you can complain free to the Financial Ombudsman Service.

The FOS can order Allianz to pay up to £415,000 for complaints about events on or after 1 April 2019, plus inflation adjustments since. The FOS decision binds the insurer if you accept it.

The Motor Insurers' Bureau is the safety net for victims of uninsured and untraced drivers. If you are hit by an uninsured driver or a hit-and-run, you can claim from the MIB at mib.org.uk.

## Switching from or to Allianz at renewal

The FCA banned the loyalty penalty in 2022; your renewal price must be no higher than the equivalent new-customer price for the same risk. In practice it can still pay to shop around: different insurers rate the same risk differently.

Get renewal quotes 3-4 weeks before the renewal date. Comparison sites (Confused.com, GoCompare, MoneySupermarket, Compare the Market) cover most of the market but not all (Direct Line and Aviva Direct only sell direct; not on comparison sites).

Cancel auto-renewal explicitly if you intend to switch. The consumer rights under the Consumer Insurance (Disclosure and Representations) Act 2012 apply throughout.

**Disclaimer:** This article is for informational purposes only and does not constitute legal, financial or tax advice. Rates and rules change annually. Always verify current information with your local council, gov.uk, or a qualified professional before making any financial decision.

## Frequently Asked Questions

### Is car insurance a legal requirement in the UK?

Yes - the Road Traffic Act 1988 section 143 requires at least Third Party Only cover for any vehicle used on public roads. Driving without insurance is a criminal offence (6 points and £300 fixed penalty, or court unlimited fine).

### How does the FCA pricing rule work?

Since 1 January 2022 (PS21/5), insurers must offer existing customers a renewal price no higher than the equivalent new-customer price for the same risk. The previous "loyalty penalty" of charging long-standing customers more has been banned.

### What is the difference between voluntary and compulsory excess?

Compulsory excess is set by the insurer based on the risk; voluntary excess is what you choose to take on. You pay the total (compulsory + voluntary) on each claim before the insurer pays out. Higher voluntary excess reduces the premium but increases your out-of-pocket cost on a claim.

### Can I claim against my own insurer if hit by an uninsured driver?

You can claim from the Motor Insurers' Bureau (MIB) for personal injury (within 3 years) and property damage (within 9 months where the driver is known but uninsured). You can also use the legal expenses add-on on your own policy if you have it.

### How long does the Financial Ombudsman take?

Typical FOS handling time is 90 days for straightforward cases, longer for complex ones. The FOS service is free to consumers and small businesses. Decisions are binding on the insurer if you accept them.

## How We Verified This

Car insurance framework verified against the Road Traffic Act 1988, the FCA Handbook (ICOBS and PS21/5 Pricing Practices Review), the Consumer Insurance (Disclosure and Representations) Act 2012, the Insurance Act 2015, and the Motor Insurers' Bureau Uninsured and Untraced Drivers Agreements.

## Sources

- [FCA - Motor insurance: consumer guidance](https://www.fca.org.uk/consumers/motor-insurance?ref=kaeltripton.com)
- [Association of British Insurers - Motor insurance guidance](https://www.abi.org.uk/?ref=kaeltripton.com)
- [Financial Ombudsman Service - Motor insurance complaints](https://www.financial-ombudsman.org.uk/?ref=kaeltripton.com)
- [gov.uk - Vehicle insurance](https://www.gov.uk/vehicle-insurance?ref=kaeltripton.com)
- [FCA Register - Check an insurer's FCA authorisation](https://register.fca.org.uk/?ref=kaeltripton.com)
- [Motor Insurers' Bureau - Uninsured driver claims](https://www.mib.org.uk/?ref=kaeltripton.com)

**Related guides:**
- [UK car insurance: complete guide](https://www.kaeltripton.com/car-insurance/)
- [Family Breakdown Cover: What Should You Look for in 2026?](https://www.kaeltripton.com/family-breakdown-cover-uk/)
- [Car insurance: general](https://www.kaeltripton.com/car-insurance-general-guides/)
- [Car insurance hub](https://www.kaeltripton.com/car-insurance/)
- [Comprehensive cover explained](https://www.kaeltripton.com/compare/best-comprehensive-car-insurance-uk-2026/)
- [No claims bonus](https://www.kaeltripton.com/car-insurance/)
- [Cancelling a policy](https://www.kaeltripton.com/car-insurance-after-cancellation-uk-2026/)