Top 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 save money on your car insurance.
Finding cheap car insurance isn’t always possible. But there are things you can do to help save money on your car insurance.
Tips for cheaper car insurance
Let’s face it, with the soaring cost of living right now, we’re all searching for ways to save money where we can. So, if there are ways to get cheaper car insurance, we’ll take them, thank you very much.
Drivers keen to save money on their car insurance could find deals by shopping around with Compare the Market. Our latest figures reveal that 51% of customers could save up to £516[1] on their car insurance when comparing through us.
But why stop there? While you’re checking out lower car insurance deals, here are our top tips to help you keep your premiums down.
[1] Based on Online independent research by Consumer Intelligence during August 2023, 51% of customers could achieve this saving on their car insurance through Compare the Market.
1. Choose a cheaper car to insure
Always check which insurance group a car is in before you consider buying it. We get it, everyone loves a noteworthy motor. But the car you drive can have a big impact on your insurance.
Generally, smaller, economic models in lower insurance groups are cheaper to insure than those with more powerful engines in the higher groups.
2. Compare car insurance quotes
Third party car insurance offers the most basic level of cover, but don’t assume it’s always the cheapest option.
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 your annual mileage
The fewer miles you clock up in a year, the lower the risk of you having an accident. That’s why insurance providers factor in annual mileage when calculating the cost of your premium.
Your provider will ask how many miles your drive on average, so be honest. If you make a claim and they discover your estimate wasn’t accurate, they may decide not to pay out.
4. Pay in one go
If you can afford to pay your annual car insurance premium in one go, you could save money.
While paying monthly can help spread the cost of your car insurance, you’ll likely be charged interest on the instalments, so it ends up more expensive overall.
5. Increase your excess
Choosing to pay a higher voluntary excess (the amount you agree to pay towards a claim) could bring down the cost of your premium.
Just make sure that you can afford to pay the voluntary as well as the compulsory excess set by the insurance provider if you need to make a claim.
6. Don’t pay for cover you don’t need
You can bump up your cover by adding optional extras to your policy, such as courtesy car cover, windscreen cover, breakdown cover and motor legal protection.
While these extras could come in handy, you’ll have to pay extra for them. Think carefully about what cover you really need to avoid paying more for your car insurance than you need to.
7. Think carefully about modifications
It might be tempting to customise your wheels, but weigh up the costs before you go ahead. Many modifications could make your car more attractive to 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. Ideally, try to park close to your home, in a well-lit spot. If you can park on your driveway or in a secure compound, that’s a good option.
A garage might seem like the most secure place to park, but it doesn’t necessarily result in a cheaper 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. But you may need to speak to your insurance provider directly to get any saving reflected in your premium.
Before you go ahead, check that buying and fitting your choice of kit doesn’t override any potential savings.
10. Think about a black box policy
Black box insurance, also known as telematics car insurance, monitors the way you drive through a small device installed in your car or via an app downloaded on your smartphone.
Telematics policies are popular with young drivers, but older drivers could also benefit from the potential savings they offer.
If you can demonstrate you’re a safe driver, you could be rewarded with a discounted premium.
11. If you’re a low mileage driver, consider pay-as-you-go insurance
Only use your car occasionally? Then you could be quids in with pay-as-you-go (PAYG) insurance.
PAYG policies adjust your premiums according to the amount of time or miles you clock up on the road. It’s a flexible car insurance option for motorists who only drive occasionally or at off-peak times.
12. Sign up for an advanced driving course
If you’re a new driver, an advanced driving course like Pass Plus can help boost your confidence on the road and could get you a discount on your car insurance.
Check with your car insurance provider first to see if an advanced course would make a difference to the cost of your premium.
13. 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.
Just make sure that the person who uses the car the most is named as the main driver. Otherwise, you’ll be committing a type of car insurance fraud known as fronting, which is illegal.
14. If you’ve more than one car, consider a multi-car policy
Many car insurance providers offer a discount if you insure two or more cars under the same policy. Depending on the drivers’ experience, driving histories and vehicle types, multi-car insurance could work out cheaper than insuring each car under a separate policy.
Compare the Market doesn’t yet offer a comparison for multi-car insurance, but we still want you to save money so it’s an option that’s worth considering.
15. Build up a no-claims discount
If you don’t make a claim on your car insurance, you’ll be rewarded at renewal with a no-claims discount (NCD). The more years you drive without making a claim, the higher your NCD could be.
Building up a good NCD can be such a money-saver that if you have a minor bump, it could be cheaper to pay for the repairs yourself, rather than making a claim.
But remember that you always need to notify your insurance provider of any accident, even if it’s minor and you’re covering the cost yourself.
16. Avoid penalty points on your licence
It stands to reason that safer drivers are likely to get lower car insurance.
Being a safe driver means obeying the rules of the road to the letter. If you get caught speeding and penalty points are added to your licence, providers are likely to charge you more for car insurance.
17. Consider how you describe your job
Insurance providers assess that people in some occupations are more likely to make a car insurance claim, which is why your job affects how much your pay for your premium.
You may find that several job titles legitimately describe your occupation, and that some help to give you a cheaper quote than others. For example, a freelance writer might be cheaper than a journalist.
While you can select a job title that could result in a cheaper premium, it must still accurately describe what you do. If it doesn’t, you could invalidate your insurance or even be prosecuted for insurance fraud.
18. Buy add-ons separately
You might find that some types of additional cover, like breakdown cover and legal protection, are cheaper if you buy them as standalone policies rather than as part of your car insurance.
19. Beware of auto-renewal
Financial Conduct Authority (FCA) rules mean that insurance providers can no longer quote existing customers a higher premium for renewing their car insurance than they’d pay if they were a new customer.
But that doesn’t mean your auto-renewal quote is the best deal out there. It’s always worth comparing car insurance quotes to see if you can find a cheaper deal elsewhere before signing up for another year.
Ready to look for savings on your car insurance?
Comparing with us could be a great way to find cheap car insurance.
We’ll show you quotes from some of the UK’s most trusted car insurance providers. You can compare the policies based on price, cover level, add-ons and annual or monthly payment.
Frequently asked questions
Which drivers pay the most for their car insurance?
Drivers who are considered high risk will typically pay more for their car insurance. These include:
- Young drivers under the age of 25
- New, inexperienced drivers
- Elderly drivers
- Drivers with motoring and criminal convictions
What are the cheapest car insurance groups?
UK car insurance groups range from 1-50. The higher the group, the more expensive your insurance is likely to be.
Cars in groups 1-10 usually have smaller engines, good safety features and lower repair costs, so are typically the cheapest to insure.
But the insurance group your car is in isn’t the only factor that will decide the cost of your insurance. Among other factors, providers will also consider your age, driving history, job and mileage, when calculating your premium.
Is it cheaper to insure an electric car?
The cost of repairs and parts may mean that an electric car is more expensive to insure.
However, electric cars can be cheaper to run, are better for the environment and can save you money on road tax, congestion charges and even parking.
Looking for a car insurance quote?
Compare car insurance quotes with us today and see if you could start saving.
Get a quote
Kate Hughes - Insurance and finance expert
As an award-winning journalist, author and broadcast commentator, Kate has been writing about personal finance for more than 20 years. She’s the former Money Editor for The Independent. Her work has appeared across the UK broadsheets as well as a number of international titles. Kate brings her financial expertise to inform her readers on ways to save money. She’s also written a book. ‘Going Zero: One Family’s Journey to Zero Waste and a Greener Lifestyle’ is available now.