Cheapest Car Insurance Deals


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Cheapest Car Insurance Deals

With the recently announced news that car insurance premiums have never been more expensive – and up over 9% in the last year - it’s not surprising that you’re looking for ways to make your car insurance cheaper.

The good news is that there are some things you can do and here we’ll look at what they are.

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Frequently thought questions

You may have a host of questions in your mind about saving money on your car insurance. Well, you’ve come to the right place. We’ve prepared some of these questions - along with the answers. So, let’s get started.

Why do I need car insurance?

There’s one very simple reason. It’s a legal requirement and there are very serious consequences if you drive a car without valid car insurance. If you were caught and the case went to court you could be disqualified from driving and face an unlimited fine.

I’m not using my car, can I just stop insuring it?

No, you can’t save on your car insurance by simply not using it and leaving it on the drive. Your car has to be officially declared off the road. Only if you’ve filled out a Statutory Off Road Notification (SORN) is this the case. You can do this online here.  

Why are car insurance premiums so high?

Car insurance can be expensive. If you’ve been quoted the kind of eye-watering figure that might burn the golden fingers of King Midas, you’ll probably be in the market for some kind of budget motor insurance. 

According to the industry body the Association of British Insurers (ABI), there were three contributing factors:

- The increase in whiplash related claims

- The increase in the average cost of repair bills

- The increase in premium taxes levied by the government

Is third party the best choice?

With comparethemarket.com you can compare all three of the main kinds of insurance, ‘fully comprehensive’, ‘third party, fire and theft’ and ‘third party only’. When it comes to budget car insurance, the cheapest type of policy around may be third party cover  – the most basic type there is, and the minimum required for you to legally drive on a UK road. It covers the policyholder for any injury or damage to another person or their property. Third party cover won't always be cheapest though, as this is dependent on individual circumstances, so you should check different cover levels.

Third party only covers you for any injury or damage to another person or their property. If you’re looking for car insurance for young drivers for example, and the car isn’t worth much, this could make sense.

But with third party insurance you’re not covered for any damage to your car or injuries to yourself, so there could be serious consequences if you’re hurt in an accident and unable to work. You should consider if a budget car insurance quote is worth that.

Why is it important to compare quotes?

If you were going to compare prices yourself and get lots of quotes it would take you many phone calls and a lot of time repeating your details. But how do you know you’ve got the best deal unless you do this? That’s where we can help with our car insurance comparison service.

Does my age affect the cost of my car insurance?

Yes. Age is one of the many influences on the cost of your insurance. Unfortunately, statistically, young drivers are much more likely to make a claim than older more experienced drivers. Insurance providers use these statistics in their pricing. 

Does my address affect the cost of my car insurance?

Although you might not be able to do much about where you live, it does have a bearing on your car insurance. If you live in a post code that has a higher crime rate, this is likely to make your insurance more expensive than in an area where the crime rate is lower.

What can I do to reduce my car insurance?

Fortunately, you don’t need to simply wait to get older in order to save on your car insurance, there are a number of things you can do:

 

  • Choose your car wisely

If you’re buying a new car, you should check what your insurance will cost before you buy your car. What you drive will have an impact on the insurance cost. As a general rule, be prepared for more powerful or expensive cars to cost more. For example, if you’re aged between 17 and 24, the average cost to insure a Corsa would be £1,297.61** a year. The average cost to insure an Astra by comparison would set you back £1,506.58**, about 16% more. See our young driver’s report and cheapest cars to insure pages for more information.

 

  • Vary your excess

Your policy excess means the amount of money that you would need to pay in the event of an accident before your insurance policy kicks in.

There are various types of excess. Compulsory excess is set by the insurance provider but voluntary excess is the amount you choose to pay on top of any compulsory excess. If you set the voluntary at zero, you would only have to pay any compulsory excess in the event of a claim but your premium may be higher. There are also other types of excess such as a young driver excess that is charged to drivers under 25 so make sure you read all of the T&Cs so you know what you’re paying for.

It is important to think about this when signing up to a policy. Your instinct might tell you to keep this figure as small as possible. However, there is a trade-off to be had here. Increasing your excess from the minimum amount, to one that you can still afford, could make a difference to your premium – just make sure you can afford the excess should you need to make a claim.

 

  • Increase the security features of your car

Increasing the security features of your vehicle might also help with the premiums. Fitting an industry-approved steering wheel lock or investing in an immobiliser might help reduce your premiums. You need to assess the one-off costs of such products against the premiums saved.

 

  • Keep your car as securely as possible

If the option is available to you, keep the vehicle in a locked garage or on a private driveway. These could both help to reduce the premium you pay.

 

  • Adding an experienced driver

If you’re a new driver and share the vehicle with a more experienced one, adding them as a named driver might save you money. Having an experienced driver with a good driving record could make a difference.

A really important word of caution here though. You must never put forward the other person as the main driver if that is not actually the case. This is known as ‘fronting’. It is a type of fraud and, at the very least, could invalidate your policy.

  • Don’t modify your car

However much modifying your car might seem like a good idea, from a budget car insurance point of view, it simply isn’t. Insurance providers don’t always see changes to factory specifications as a good thing and many even simply refuse to quote you a price.

 

  • Restrict how much you drive

Limiting the amount of time you’re on the road could reduce your risk and could therefore reduce your premium. All policies ask for a maximum mileage, so set this as low as is realistically achievable.

But make sure you tell the truth – if you significantly underestimate your mileage and then make a claim, your policy could be invalid.

 

  • Drive well

The consequences of driving well will, over time lead to lower premiums as your no claims discount increases. If you start racking up the penalty points you will start pushing up your premiums too. If you do incur some points remember, you do need to tell your insurance provider. They may affect your premium, and failure to tell them might have consequences for your cover.

A pass plus course from the driving standards agency may also help new drivers get a discount on your car insurance if you successfully complete the course. Some providers only offer a discount if you take the course within a year of passing your test, other providers might extend the discount for longer, you would need to check with the insurance provider.

  • Consider a black box policy

If you’re confident in your abilities, you may want to investigate getting a telematics or black box insurance policy . The black box refers to a gadget placed in the car that relays details of how you’re driving to your insurance provider or it could be an app that you download to your phone for some insurance providers. They could reward your good driving behaviour with lower insurance premiums.

 

  • Pay for your car insurance upfront

It’s worth buying online, partly because it saves your phone bill, and also because providers sometimes offer discounts to online customers, as it’s cheaper for them to process applications this way. If you can afford it you could also make savings by paying for your car insurance upfront. Agreed, it can be tricky to make sure you have a lump sum at the right time every year - these things always come around quicker than we think. But if you're able to organise yourself to put a bit away every month you could save yourself quite a bit.

 

  • Think carefully about optional extras

Not all policies are the same. Some policies include extras such as courtesy cars or breakdown cover. If it's a fair amount and you don't want them, then remove them, but do think hard about the implications of not having a replacement car or breakdown cover when you need them.

 

Where does the no claims discount come in?

Drivers who don’t make claims can make good savings on the cost of their premiums. Building up a good no claims discount (NCD) is such a money-saver that if you have a minor prang sometimes it’s cheaper to fork out for repairs yourself rather than lose it – but remember, you always need to notify your provider of any accident, even if you are covering the cost yourself.

Will removing no claims discount protection reduce the cost of my insurance?

No claims bonus protection does cost a little more to have, but remember, if you do need to make a claim and have ditched the protection, you'll have to start building your no claims up all over again.

In the meantime, your premiums could rise. There are some insurance providers that offer accelerated no claims, which can be useful if you find yourself in that situation or you're a new driver.

Comparing car insurance

Our price comparison service is the most effective way to compare more than 100 insurance providers and get an overview of the deals on the market. It will help you make sure you get a great deal and the right cover features for you.

Try it today and see what you could save.