Car insurance is often costly, but the good news is, there are ways you can make it more affordable.
- Pay your premium in one go
It’s typically cheaper to pay your yearly insurance in one lump sum. A monthly payment plan will most probably have interest charges on top of the instalments.
Simply shopping around and comparing a number of quotes with our comparison service can save you money. Young drivers could reduce insurance costs by nearly £230 on average by shopping around based on Compare the Market data from the Young Drivers Report in July 2019.
^^The average saving is based on the difference between the cheapest click-through price presented and the mean average of the top five cheapest prices presented to a customer, where a consumer has clicked through to buy.
- Check different levels of cover
Most of us assume that third party is the cheapest cover and comprehensive the most expensive, but that’s not always the case. If price is a priority, check a range of cover types to see if a cheaper premium could suit your needs.
- Increase your voluntary exces
Car insurance excess is the amount you’ll have to pay when you make a claim before your insurance kicks in. If you’re under 25, some insurance providers may also require you to pay an additional young driver excess, as they consider you high risk. Increasing your voluntary excess could mean a cheaper monthly premium. Just make sure you can afford the compulsory excess set by your insurance provider, your voluntary excess and any young driver excess if you need to make a claim.
Fitting additional security, such as an industry approved alarm or immobiliser, to your car could help reduce your premiums (if your car doesn’t already have either of these). You need to assess the one-off costs against any insurance savings you might make, so check with your insurance provider first about any discount.
- Add an experienced driver
If you can add an experienced driver who also uses the car (such as a parent or older sibling) to your policy, it could save you money. Even an occasional experienced extra driver with a good driving record could make a difference. Just remember, they should actually drive the car every now and again. But don’t put them forward as the main driver if this isn’t the case. This is known as car insurance fronting and is illegal.
Your insurance provider will need to know how many miles you think you’ll drive in a year. If you’re only likely to use your car during holidays or at weekends, then declaring a low annual mileage estimation could cut the cost of your premium.