16 tips on how to get cheaper car insurance

Finding cheap car insurance isn’t always possible, but there are things you can do to help cut your costs. We’ve put together some top tips that could help you save money on your premium. 

Finding cheap car insurance isn’t always possible, but there are things you can do to help cut your costs. We’ve put together some top tips that could help you save money on your premium. 

Daniel Hutson
Head of Motor Insurance
minute read
Do you know someone who could benefit from this article?
Posted 5 NOVEMBER 2019 Last Updated 12 JULY 2020

Saving money on your car insurance

Our latest Premium Drivers Report suggests that car insurance premiums have risen in the past year, with the average now standing at £688 for the first quarter**. That's up from £640 in the fourth quarter of 2021.
But drivers are still looking for ways to reduce the cost of their car insurance. As well as using Compare the Market to check out great car insurance deals, take a look at our top tips that could help you keep your premiums down. 
**Compare the Market, Premium Drivers Index, April 2022. 

1. Choose a cheaper car to insure

The car you drive can have a big impact on your insurance, with some models offering lower premiums, on average, than others. Always check which insurance group a car is in, before you consider buying it.

2. Compare multiple car insurance quotes

Because third party car insurance offers the most basic level of cover, it’s easy to see why people assume it’s the cheapest option. This isn’t always the case though, as car insurance prices depend on each person’s circumstances.

Compare car insurance with us and you can look at prices for the three main types of car insurance: third party, third party fire and theft and comprehensive.

3. Reduce annual mileage

If you limit the amount of time you’re on the road, your insurance provider may consider you a lower risk and therefore reduce your premium. Your insurance provider will ask how many miles you drive on average, as it’s one of the main factors used to calculate your insurance premium. 
Set your mileage as low as you can, but be realistic. If you  make a claim  and your insurance provider discovers your estimate wasn’t accurate, they may decide not to pay out. 

4. Pay in one go

When you take out a new policy, you’ll have the choice to pay for the whole year up front, or in monthly instalments . If you can afford to  pay your yearly premium in one go, you could save money. Despite the obvious attraction of spreading the cost of your car insurance, your insurance provider could charge you interest on the monthly instalments.  

5. Increase your excess

All car insurance policies have an excess, which is the amount you’ll have to pay if you make a claim. If you choose to pay a higher voluntary excess, you could see a reduction in your premium. Be aware, though, that this could cost you more if you make a claim, as you’ll have to pay this higher voluntary excess as well as the compulsory excess set by the insurance provider.

6. Don’t pay for cover that you don’t want

Some policies include extra benefits, such as a courtesy car, windscreen cover, breakdown cover and motor legal protection.

All of these could definitely come in handy, but they will almost certainly increase your premium. If you’re willing to risk it, taking these extras off your policy could save you money in the short-term. 

7. Think carefully about modifications

It may be tempting to customise your wheels, but weigh up the costs before you go ahead. Many modifications could make your car more attractive in the eyes of thieves, and your car insurance may go up to reflect this increased risk. 

8. Park your car off the road

Where you park your car overnight can make a difference to your premium. If possible, park on a private driveway. A garage might seem like a secure place to park your car, but it might not lead to a reduction in your insurance premium. That’s because some providers think you might damage your vehicle driving it in and out. 

9. Improve your car’s security

Fitting an industry-approved alarm or immobiliser might help to cut the cost of your car insurance. You may need to speak to your insurance provider directly to get any saving reflected in your premium. Also, it’s a good idea to check whether the costs of these products override any potential saving, before going ahead. 

10. Think about a black box policy

Sometimes called telematics car insurance, a black box policy rewards good drivers. A small device about the size of a mobile phone is installed in your car, or you download an app to your phone which monitors aspects of your driving, such as acceleration, braking, cornering and the time of day you drive. Often popular with young drivers, telematics policies can also be useful for drivers in older age groups. 
You could receive a discount on your premium for good (lower risk) driving but, be warned, your premium could also increase due to bad (higher risk) driving. 

11. You could take an advanced driving course

An advanced driving course, such as Pass Plus, may help you get a discount on your car insurance. Always check with your insurance provider before you take a course, though, as not all providers offer a discount simply because you have an extra driving qualification.

12. Add a named driver to your policy

If you’re a new driver and you share your car with a more experienced driver, you could cut the cost of your premium by adding them to your insurance policy. Even adding a second driver with a low-risk occupation could reduce your premium. Just remember, though, it’s illegal to say the other person is the main driver of the car if that isn’t actually the case. This is known as fronting, a form of insurance fraud, which at the very least can invalidate your insurance policy, but could also lead to a criminal conviction.

13. Build up a good no claims discount

If you don’t make a claim on your insurance, you’ll be rewarded at renewal with a no claims discount (NCD).

Building up a good NCD can be such a money-saver that if you have a minor bump, it’s often cheaper to pay for the repairs yourself, rather than making a claim. But remember, you always need to notify your insurance provider of any accident, even if it’s minor and you’re covering the cost yourself. 

14. Avoid penalty points (endorsements) on your licence 

Safer drivers get better deals on their car insurance. The best way to tell if someone’s a safe driver from an insurance point of view, is to see that they have zero points on their licence. That means if you have a clean licence, you should avoid hefty hikes to your car insurance premium. 
The best way to avoid points on your licence is to drive sensibly and obey the rules of the road. 

15. Think carefully about how you describe your job

Certain jobs are considered higher risk than others by insurance providers. These tend to be jobs that may require you to drive to more dangerous areas, or travel at higher-risk times of day. You may find that several job titles legitimately describe your occupation fairly, and that some help to give you a cheaper quote than others.  
You can select a job title that could result in a cheaper premium. However, you must select a job title that accurately describes what you do. If it doesn’t, you could invalidate your insurance, or even be prosecuted for insurance fraud. It always pays to be truthful. 

16. Look at buying add-ons separately

You might find that some types of insurance, like breakdown cover and legal protection, are cheaper if you buy them as standalone policies, rather than as part of your car insurance. If there’s an add-on you know you want to have, it might be worth looking at prices for standalone policies, before you search for car insurance. 

Are you ready to find potential savings on your car insurance?

Comparing with us could be the best way to get a cheaper deal. We’ll show you some great deals from a variety of the UK’s most trusted car insurance providers. You can compare the policies based on price, cover level, add-on, or annual or monthly payment, helping you to find affordable car insurance that suits your needs.

Looking for a quote?

Compare quotes with us today and see if you can start saving.

Get a quote
Compare car insurance Get a quote