60-second summary
Here’s a quick breakdown of what you need to know:
The less likely you are to make a claim, the cheaper your premium is likely to be.
Check your car’s insurance group before buying, as some cost more to insure than others,
Comparing quotes around 20–27 days before your renewal date may brings better prices than leaving it to the last minute.
Compare different levels of cover – comprehensive insurance isn’t always the most expensive.
How to save on car insurance
In a hurry? Watch our short video with insurance expert Guy Anker sharing his top tips on finding the cheapest car insurance.
Text transcript
First things first. If you drive a car, you need insurance, so make sure you get it.
But don't auto renew if you already have insurance, because you're then limited to that particular provider's price.
If you use a comparison site, you get a much wider range of quotes, so you're playing the odds. The chances are for most people there'll be a cheaper deal, but there might not be. But if you don't check, you don't know.
Sometimes, legitimately playing around with a few variables can save you money. First thing, legitimately changing your job title. On car insurance question sets, there might be more than one job title that accurately reflects what you do. So sometimes playing around, as long as you're not lying, playing around can sometimes get you a cheaper deal. Also, legitimately adding a responsible second driver can sometimes bring the cost down as well, so it's worth checking. But really importantly, don't put them down as the main driver if they're not going to be. That's something called fronting, which is against the law.
But being a responsible second driver sometimes cut costs, so it's worth checking.
1. Compare car insurance quotes
Comparing quotes is one of the easiest ways to make sure you get the best car insurance deal for you. But don’t just compare insurance providers – look at different policy types too.
For instance, third-party car insurance offers the most basic level of cover, but it’s not always the cheapest option.
For some drivers, third-party only (TPO) cover may still be cheaper, but for many, our data shows that comprehensive car insurance can offer better value and sometimes lower premiums.
Cover level | Median annual premium |
|---|---|
Comprehensive | £593[1] |
Third-party | £1,302[2] |
Prices vary by driver, so it’s important to compare quotes for different levels of cover.
[1] 51% of our customers were quoted less than £1,301.37 per year for their third party car insurance in June 2026.
[2] 51% of our customers were quoted less than £592.26 for their comprehensive car insurance in June 2026.
Compare car insurance2. Choose a cheaper car to insure
Always check a vehicle's insurance group before buying it, as the car you drive can significantly impact the cost of your insurance.
Generally, cars with smaller, less powerful engines will be in lower insurance groups, meaning they’re cheaper to insure. Those with more powerful engines are usually in the higher, pricier groups.
3. Reduce your annual mileage
The fewer miles you drive in a year, the lower your risk of having an accident.
That’s why insurance providers ask for your annual mileage when calculating premiums. So, the less you drive, the cheaper your car insurance is likely to be.
Important to know
Be as accurate as you can when estimating your annual mileage. If you make a claim and are found to have driven significantly more miles than you said you would, your insurance provider could reduce or refuse your claim, or even cancel your policy.
4. Pay in one go
You could save money by paying for your car insurance in one go. Paying annually usually avoids interest charges, so you’re only paying for the actual cost of your cover.
If you choose monthly instalments, you could pay around 20% more for your policy because of the added interest, according to Which?. Their data also shows that some providers charge as much as 45% interest.
5. Increase your excess
Choosing to pay a higher voluntary excess (the amount you agree to pay towards a claim on top of the compulsory excess) could reduce the cost of your car insurance.
Remember
Make sure that you can afford to pay the total combined excess if you need to make a claim.
6. Only get the cover you need
You can increase your level of cover by adding optional extras to your policy, such as:
These extras can be useful, but they’ll usually increase the cost of your policy. Think about which features you’re likely to use so you only pay for cover you really need.
7. Consider buying add-ons separately
You might find that some types of additional cover, such as breakdown cover and legal protection, are cheaper if you buy them as standalone policies rather than as add-ons. It’s worth comparing the cost before you commit.
8. Consider a multi-car policy when insuring two or more vehicles
Many car insurance providers offer a discount if you insure two or more vehicles 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 separately.
Sorry – Compare the Market doesn’t yet offer a comparison for multi-car insurance.
9. Park your car off the road
Where you park your car overnight can make a difference to your car insurance premium. If you can, park close to your home in a well-lit spot, on a driveway or in a secure compound.
Did you know?
A garage might seem like the safest place to park, but it doesn’t always mean cheaper car insurance. That’s because some providers think you might have an accident driving it in and out.
10. Improve your car's security
Fitting an industry-approved alarm or immobiliser could help cut the cost of your car insurance. However, you may need to tell your insurance provider directly to have any discount applied to your premium.
Similarly, some providers may offer a discount for having a dash cam fitted and switched on while you drive. On top of potentially lowering your car insurance premium, this can provide useful evidence if you need to make a claim.
Top tip
Before you commit to new security equipment, check the cost of buying and fitting it doesn’t outweigh any potential savings.
11. Think about a black box policy
Black box insurance, also known as telematics car insurance, monitors your driving using a small device installed in your car or an app on your smartphone.
Telematics policies are popular with young drivers, but older drivers could also benefit from their potential savings.
If you can show you’re a safe driver, you could be rewarded with a lower insurance premium.
12. Consider pay-as-you-go (PAYG) insurance if you're a low-mileage driver
If you only drive your car occasionally PAYG car insurance could work out cheaper than a standard policy.
PAYG policies adjust what you pay based on the time you spend on the road or the miles you travel. They can also be a flexible option if you mainly travel at off-peak times.
13. Beware of auto-renewal
Financial Conduct Authority (FCA) rules mean insurance providers can't quote existing customers a higher premium for renewing their car insurance than they would pay as a new customer through the same channel.
But that doesn’t mean your auto-renewal quote is the best deal out there. It’s always worth comparing car insurance quotes before you renew to see if you can find a cheaper deal elsewhere.
14. Renew your car insurance at the right time
Timing can affect the cost of your car insurance.
Start shopping around too early and you might get fewer quotes to choose from. Leave it until the last minute and you could be seen as high risk, potentially driving your premium up.
Generally, the sweet spot where you’ll likely find the cheapest price is around 20-27 days before your renewal date.
Top tip
You should get an email when your renewal date is coming up. Set a reminder on your phone for three weeks or so before your policy ends or jot it down in your calendar so you don’t miss your window to find the best deals.
15. Add a named driver to your policy
If you’re a new driver and you share your car with someone more experienced, you could cut the cost of your premium by adding them as a named driver.
Just make sure the person who uses the car the most is listed as the main driver. Otherwise, you could be committing a type of car insurance fraud known as fronting.
16. Build up a no-claims discount
If you go a full year without making a claim on your car insurance, you’ll usually be rewarded at renewal with a no-claims discount (NCD).
The more years you drive without claiming, the bigger your NCD could become and the more you may save on your premium.
If you’ve built up a good NCD and have a minor bump, it might be cheaper to pay for the repairs yourself rather than making a claim. It’s always worth checking how a claim will affect your discount first.
Also bear in mind you’ll need to declare any claims you’ve made next time you renew your policy, which can, unfortunately, lead to pricier premiums.
17. Avoid penalty points on your licence
Insurance providers usually see drivers with no points on their licence as lower risk, which can help keep car insurance costs down.
Being a safe driver means obeying road rules to the letter. If you’re caught speeding or commit any other motoring offence, you could get penalty points on your licence and providers are likely to charge you more for your insurance.
A clean driving licence doesn’t guarantee a cheaper policy, but it can help avoid price increases and make it easier to find more competitive prices in the future.
18. Share your driving licence number
When searching for car insurance quotes, providing your driving licence number can help insurance providers check your details and driving history more accurately.
It won’t always lower your premium, but it could help bring up more tailored deals, so it’s worth a try.
19. Think carefully about your job title
When comparing quotes, you’ll be asked to choose your job from a list of occupations. Your answer can influence the price of your premium, as people in some occupations may be more likely to claim than others.
Make sure you choose the one that most accurately reflects what you do. For example, if you work in the arrears department of a bank and select ‘debt collector’, the provider might assume you work as a bailiff and quote you a different amount.
If in doubt, always talk to the insurance provider, as getting this wrong could invalidate your policy.
20. Sign up for an advanced driving course
If you’re a new driver, an advanced driving course such as Pass Plus could improve your skills and help you get a discount on your car insurance.
Check with your provider to see if it recognises the course, and whether it could make a difference to your car insurance premium.
21. Think carefully about modifications
It might be tempting to customise your car, but factor in the cost this could add to your insurance premium as well as the modification itself before you go ahead.
Some modifications could make your car more attractive to thieves or more expensive to repair, which may increase your car insurance cost. Always tell your insurance provider about any changes so your cover stays valid.
Ready to compare 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 policies based on price, cover level, add-ons and annual or monthly payments to find your cheapest quote.
FAQs
Which drivers pay the most for their car insurance?
Drivers who are considered high risk will typically pay more for their car insurance. These can include:
Young drivers under the age of 25
Drivers with motoring and criminal convictions
What are the cheapest car insurance groups?
UK car insurance groups range from 1-50. Cars in groups 1-10 usually have smaller engines, good safety features and lower repair costs, so they’re typically the cheapest to insure.
The insurance group your car is in isn’t the only factor that will decide the cost of your insurance. Among other factors, providers 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, as with petrol and diesel cars, the cost can depend on the make and model you drive as well as which insurance group it’s in.
Looking for something else?
With more than eight years’ experience in writing and sub-editing content, Karen started her career in fashion before making the move to insurance. She now specialises in producing clear, engaging content that helps people make better financial decisions.
Karen’s areas of expertise include insurance products, such as car insurance, travel insurance and life insurance, as well as utilities such as energy comparison.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Amy helps make sure you get the best value when choosing insurance. Thanks to more than four years’ experience at Compare the Market, she understands what people look for, working closely with insurance providers to offer you deals and services that are fair, easy to understand and right for your needs.
Our content is written by a Compare the Market expert, backed by data and enhanced by technology. Find out how we ensure accuracy and quality in our Editorial Guidelines.
