Let’s be honest — car insurance isn’t exciting. But overpaying for it? That’s just painful.
The good news is that there are several things you can do to find cheaper car insurance without cutting corners on the cover you need.
Whether you’re renewing an existing policy or insuring a new car, these ten tips could help you find cheaper car insurance and keep more money in your pocket.
Loyalty doesn’t always mean you’ll get the best deal.
Since January 2022, FCA rules have prevented insurers from charging renewing customers more than an equivalent new customer through the same sales channel. However, that doesn’t mean your renewal quote will automatically be the cheapest option available.
The FCA’s rules on motor insurance pricing are designed to prevent price walking, but comparing quotes can still help you find cheaper car insurance.
How to save: Get several quotes before your renewal date and compare the cover as well as the price. You can also check insurers that don’t appear on comparison websites.
You can compare car insurance quotes through Compare the Market to compare your options, then check direct providers as well.
Auto-renewal is convenient, but it can also make it easy to forget about your insurance until it’s too late.
Comparing several providers is one of the easiest ways to find cheaper car insurance before your current policy renews.
When your renewal notice arrives, use it as a reminder to review your cover and compare prices. Getting several quotes is one of the simplest ways to look for cheaper car insurance.
How to save: Get several competing quotes and then speak to your current insurer if you’ve found a better deal elsewhere.
It may be worth asking whether they can improve their renewal price. Even if they can’t, you’ll know you’ve checked your options.
Pro tip: Set a calendar reminder several weeks before your policy ends. That gives you plenty of time to compare your options rather than rushing at the last minute.
Adding an experienced named driver can sometimes reduce your premium, but only if the information you provide is accurate.
The main driver must be the person who actually uses the car most. Putting someone else down as the main driver simply because they are cheaper to insure is known as fronting.
How to save: If someone in your household genuinely drives your car, adding them as a named driver could reduce the premium. An experienced driver with a good driving history may be particularly helpful.
Never add someone simply because you think it will make the policy cheaper if they don’t actually use the vehicle. Fronting can be treated as insurance fraud and could cause serious problems if you need to make a claim.
Your occupation can affect how an insurer calculates your premium.
That doesn’t mean you should choose whichever job title produces the cheapest quote. Instead, make sure you select an accurate description of what you actually do.
How to save: When completing a quote, check the occupation options carefully and choose the most accurate one for your circumstances. Sometimes there may be several legitimate descriptions that apply to the same job, with different prices.
The important thing is to be honest. Never deliberately provide misleading information just to get cheaper car insurance.
Small details can make a difference to your insurance quote.
Your address, occupation, annual mileage, parking arrangements and how you use your car can all affect the price you’re quoted.
Being on the electoral register can also help companies verify your identity and address, although you shouldn’t expect it to automatically reduce your insurance premium.
How to save: Check every detail before buying or renewing your policy. If your circumstances have changed during the year, tell your insurer rather than allowing incorrect information to remain on your policy.
Accurate information is important because providing incorrect details could cause problems if you need to make a claim and could prevent you from getting cheaper car insurance legitimately.
If your household has more than one car, a multi-car policy could potentially save you money.
Some insurers also offer discounts when customers combine different types of insurance, although bundling isn’t automatically cheaper.
How to save: Ask your current insurer about multi-car or combined policies, then compare the total cost against buying separate policies.
Don’t assume that keeping everything with one insurer is the cheapest option. Get the numbers and compare the cover before making a decision.
Sometimes buying separate policies can work out as the cheaper car insurance option.
Paying for your car insurance in one instalment can work out cheaper than spreading the cost over the year.
That’s because monthly payments can involve interest or other finance charges, depending on the insurer and payment arrangement.
How to save: Check the total amount you’ll pay over the year rather than simply comparing the monthly figure.
For example, a policy advertised at £55 per month would cost £660 over 12 months. If the annual payment is £600, paying upfront would save £60.
If you can’t afford to pay annually, don’t overstretch yourself just to avoid monthly payments. The important thing is to compare the total cost when looking for cheaper car insurance.
Your excess is the amount you agree to contribute towards a claim.
Increasing your voluntary excess can reduce your premium because you’re agreeing to take on more of the cost if you make a claim.
How to save: Try different voluntary excess amounts when getting quotes and see how much difference they make to the premium.
But don’t simply choose the highest excess available.
Make sure you could comfortably afford your compulsory and voluntary excess if you needed to make a claim. A cheaper policy isn’t much use if the excess is so high that you can’t afford to repair or replace your car.
A slightly higher excess could help you find cheaper car insurance, but only if you’re comfortable with the additional cost if you need to claim.
The key is to balance the saving against an excess you could realistically afford, rather than choosing an amount simply to get cheaper car insurance.
Vehicle security can also affect the price of your insurance.
Parking somewhere secure, such as a locked garage or private driveway, may be viewed differently from parking on the street. Approved security devices can also be worth considering, particularly for vehicles that are attractive to thieves.
How to save: If your insurer offers a discount for security equipment, ask which products they recognise before buying anything.
A Thatcham-approved security device may be useful, but don’t assume that fitting one will automatically reduce your premium.
You should also tell your insurer about any security changes if they’re relevant to your policy.
Better security won’t guarantee cheaper car insurance, but it can be one of several factors worth discussing with your insurer.
Telematics or black box insurance isn’t just for young drivers.
These policies monitor aspects of your driving, such as speed, braking, acceleration and sometimes when and where you drive. Depending on the policy, safer driving could help you get a lower premium.
How to save: If you’re comfortable with having your driving monitored, compare telematics policies alongside conventional insurance.
Black box insurance can be particularly useful for some younger or higher-risk drivers, but it isn’t automatically cheaper for everyone.
Before choosing a telematics policy, check exactly what is monitored and whether there are restrictions around mileage, driving times or where you can drive.
For some drivers, a black box could be another way to find cheaper car insurance.
Even after trying these tips, there are some factors that can make car insurance expensive.
Repair costs: Modern cars can contain expensive sensors, cameras and electronic equipment, meaning even relatively minor accidents can result in costly repairs.
Insurance Premium Tax: Standard-rate Insurance Premium Tax is currently 12% on most types of insurance, including ordinary motor insurance. You can’t avoid it, but reducing the underlying premium will also reduce the amount of tax you pay. You can check the current rate on the GOV.UK Insurance Premium Tax page.
Driving history: Previous claims, convictions and penalty points can affect the price of your insurance. How long these remain relevant varies depending on the insurer and the type of incident.
Annual mileage: The more you drive, the more time you spend on the road. Give an accurate mileage estimate and update it if your circumstances genuinely change.
Location: Where you live and where you normally keep your car can affect your premium because insurers assess the risk associated with different areas.
Your car: The make, model, engine, value, repair costs and insurance group can all affect how much you pay.
There isn’t one single factor that determines your premium.
Insurers consider a combination of information about you, your car and how you use it. This can include your age, address, driving history, occupation, annual mileage, claims history, vehicle characteristics, where the car is kept and the level of cover you choose.
Your voluntary excess and whether you choose a telematics policy can also affect the price.
Understanding what affects your premium is one of the first steps towards finding cheaper car insurance.
Cheaper car insurance isn’t about luck. It’s about giving yourself time to compare your options and making sure the information you provide is accurate.
Shop around before your renewal, compare the total cost rather than just the monthly payment, check whether adding a genuine named driver could help and consider whether a higher voluntary excess or telematics policy is right for you.
Taking a little time to compare your options is often the simplest route to cheaper car insurance.
Most importantly, never reduce your cover or provide inaccurate information simply to get a cheaper quote.
If you’re looking for cheaper car insurance, start comparing before your renewal date rather than waiting until the last minute.
And once you’ve sorted your insurance, why not browse our used cars for sale to find your next car?
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