A simples guide

How to reduce car insurance

Car insurance is expensive, it’s a simple fact. If you’re a young driver, then it can be a real issue as the price of insurance can easily outweigh the cost of your first car. But there are steps you can take to cut the cost and get out on the open road. 

Share

Why is car insurance important?

 It’s a legal requirement to insure your car, but it goes beyond that. You need to make sure you are properly covered so that you don’t have to foot the bill for any damage you cause to someone else’s car, or worse.

If your car is declared off the road (SORN) then you don’t need to insure it. If you haven’t filled out the SORN paperwork, though, you could get a fixed penalty, have your vehicle impounded or face prosecution. So if you are not going to be driving for a while then make sure you have filled out the right forms.

Don’t think that you can drive a car simply because the owner has insurance, either. In fact, it’s highly unlikely that anybody other than the named driver can take the wheel of most cars, unless you have specifically requested this from your insurer.

 

multiple keys
toy car and money

What can cause high premium prices?

If you are a young driver, especially if you have just passed your test and don’t yet have any driving history, then your insurance premium is going to be more expensive than someone with a good driving history. You don’t have a significant amount of time behind the wheel, the statistics show that you’re more likely to have an accident and the insurance providers know that they are taking a higher risk by insuring you. Unfortunately, there is always a price to pay for that.

Your occupation can also count against you when it comes to car insurance, as certain professions are considered a higher risk. If you spend more time travelling, you have expensive gear in your car or you work in an area where cars get stolen then these can all contribute to a more expensive quote.

Inevitably the car you choose will have a major impact on your premium price, too. If you’re driving a top of the range sports car then you can expect to pay more than a 1-litre hatchback, that’s because the sportier car might be more expensive to repair and will usually be in a higher insurance group than a smaller car. Modifications can add to the cost of your premium too, as some companies will see modifications as a safety or theft risk and won’t want to insure modified cars. It could reduce your chances of getting a good quote.

You may also pay more if you live in a high-risk area, or if you use your car for driving on company business.

Then there is your driving history. Past behaviour is the best indicator of future performance, so if you have a clean driving record with many years without a claim, then that is a good sign for an insurance company. So you’ll typically be rewarded with a lower quote.

If you have had several accidents or you have points on your licence, then that is a cause for concern and you will almost certainly have to pay more.

 

How can you cut down your car insurance costs?

There are a number of steps you can take to lower the cost of your premium and some of them could make a substantial difference to your premium.

The first thing you could do is a thorough price comparison. Even if you already have a policy, you should never automatically renew your insurance without checking out the competition first. Other companies want your business and it is highly likely one of them will offer you a better deal than your current provider.

Make sure you’re comparing different types of cover as you don’t want to get excited about a quote, only to realise it’s third party rather than fully comprehensive cover or the excess is much higher than you originally thought.

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

You can also offer to pay a bigger excess. Just make sure you can afford the total excess should you need to make a claim, but if you can then it could help you save a significant amount on your car insurance premium. Use our price comparison service and change the excess. It really can make a big difference, so give it a go.

Finding somewhere secure to park your car at night could make a difference to the cost, too. If it’s parked on the street it is at risk, if it is parked on your driveway then it’s considered safer.

There are a wealth of other options, too. The lower your mileage the cheaper your premium could be, but be realistic about what your mileage could be

If you are a young driver then you can take an advanced course like Pass Plus, which will show the insurer that you’re a better driver. You can also go for a telematics or ‘black box’ policy, which fits a box or app to your car and monitors your performance. When the insurance company reviews your driving behaviour, your premium could go down if you’ve been driving well, equally it could go up if you’ve been reckless.  

So as you can see there are lots you can do to reduce the price of your car insurance premium. Put all these into action and see what difference it makes. Better yet, go to our price comparison service and put the details in there. It will tell you within minutes just how much the different options could affect your premium.

Looking for a Quote?

Get a new car insurance quote in seconds and start saving

Get a quote