How to get cheap car insurance
Use our money-saving tips to find the right car insurance policy at the right price and cut the cost of your premium.
Key takeaways
Shopping around and comparing car insurance quotes can save you more than £500
Buying car insurance about three weeks ahead of your renewal date will save you money compared to buying it at the last minute
Paying annually for car insurance will work out cheaper than paying monthly
Your driving history – both claims and driving convictions – has a significant impact on how much you pay for cover
How to get cheap car insurance
Using MoneySupermarket statistics to compare quotes can save you up to £5111.
The single most important thing you can do to save money on car insurance is shop around and compare policies and premiums from different providers.
Bear in mind that insurers target different demographics, so the cheapest insurer for your friend or partner might not offer the best deal for you.
Don’t accept your auto-renewal quote from your existing insurer – it’s more than likely you can find cheaper cover elsewhere.
Timing your quote comparison is important too. Based on MoneySuperMarket quoted policies for annual car insurance, between July 25th 2024 and October 23rd 2024, you could save up to £231[2] by comparing quotes 20 days before your renewal date.
Why are car insurance premiums going up?
Car insurance premiums are increasing due to a number of factors, including more claims, inflation, and supply chain issues.
According to the ABI's Motor Insurance Premium Tracker the average motor insurance premium stood at £468 in Q3 20193 but had risen to £612 by Q3 20244.
Tips for cheap car insurance
Choose fully comprehensive cover
Legally, drivers need a minimum of third party only cover to drive in the UK. However, fully comprehensive car insurance is both cheaper, and offers a higher level of cover. Third party can be more expensive because those who opt for lower levels of cover tend to generate more insurance claims.
Pay annually
Spreading the cost of your car insurance by paying monthly might be easier to budget for than paying your premium in one go, but it will usually cost you more in the long run.
This is because when you opt to pay in instalments, the insurer effectively gives you a loan for the whole premium and you repay this monthly, with interest.
Annual payments are up to 31%[5] cheaper than paying monthly, according to MoneySupermarket figures.
If you can't afford to pay in one go, consider using a 0% purchase credit card. Make sure you clear your balance in full before the 0% period ends.
For more information on how to check when your car insurance is due, take a look at our guide here.
Increase your excess
The ‘excess’ on a car insurance policy is the amount the policyholder pays in the event of a claim – then the insurer pays the rest.
For example, if you make a claim for £2,000 worth of damage and the excess on your policy is £200, the insurer will pay £1,800.
There are two elements to car insurance excess: Compulsory and voluntary.
A higher voluntary excess can reduce your premiums. But before you increase your excess, work out whether you could afford to pay that amount in the event of an at-fault claim.
Skip unnecessary extras
Car insurance policies come with a range of extra features, such as legal expenses cover, windscreen cover or use of a courtesy car.
When buying a policy, think about the optional cover that will be most useful for you and make sure you compare car insurance policies like-for-like.
Add experienced drivers
Adding a more experienced named driver can reduce your premiums, especially if you are young and/or recently passed your driving test.
Conversely, adding a younger, less experienced driver will increase premiums for older more experienced drivers.
Always be honest about who the main driver is to avoid invalidating your insurance by “fronting”.
Job title
Your occupation can influence your premium. You shouldn’t lie to your insurer about the job you do, but tweaking your job title might save you money.
Driving habits
If you think you can stick to a lower mileage, you may be able to save money on your car insurance. Fewer miles means you’re a lower risk for insurers, so cheaper to insure.
MoneySupermarket found that someone who drives 10,000 miles a year pays on average 3%[6] more than someone who drives 2,000 miles a year.
When you take out cover, the insurer will ask what you use the car for. If you don’t commute to work in your car, selecting social and domestic use will save you money.
Improve car security
Enhancing your car's security with an alarm or immobiliser can reduce your car insurance premiums as the more secure your car is, the harder it will be to steal.
A ‘Thatcham-approved’ security device will lower the cost of your insurance.
Choose your car wisely
Cars are sorted into 50 insurance groups, with lower groups generally resulting in lower premiums.
You can check the insurance group of a car using the car insurance group checker.
Park off road
It’s always best to park your car off the road, or ideally in a locked garage, overnight if you can. This will reduce the chance of it being stolen, reducing the risk for your insurer.
Cut down on claims
Building up a no-claims bonus (NCB) can lead to significant discounts on future car insurance premiums.
Each time you go 12 months without making a car insurance claim, you get another year added to your NCB.
So drive carefully and think twice before claiming for small damages.
Drive safely
Convictions for speeding or driving under the influence of drugs or alcohol will result in higher premiums.
Steer clear of modifications
Modifying your car, such as adding alloy wheels or enhancing performance, can increase your premiums due to higher theft risk and repair costs.
Consider telematics
With telematics, your driving is monitored via a smartphone app or a ‘black box’ fitted to your car.
Telematics car insurance can often mean cheaper cover – but only if you’re a good or low-mileage driver. This can be a good option for younger or new drivers.
Take a driving course
Completing an advanced driving course like Pass Plus can sometimes result in insurance discounts, though not all insurers offer this.
Shop around 20-27 days before your renewal date
Insurers generally offer their best deals a few weeks before your policy starts. The cheapest time is usually 20 days before - comparing quotes on this day can save you up to £231[2] compared to doing so at the last minute. Based on MoneySuperMarket quoted policies for annual car insurance, between July 25th 2024 and October 23rd 2024.
Sources:
151% of consumers could save up to £511.08 Consumer Intelligence , December 2024 Exc NI, CI, IOM
2Based on MoneySuperMarket quoted policies for annual car insurance, between July 25th 2024 and October 23rd 2024
4Motor premiums fall for the second consecutive quarter | ABI
5Based on MoneySuperMarket quoted policies for annual car insurance, between August 7th 2024 and November 5th 2024
6Based on MoneySuperMarket quoted policies for annual car insurance, between August 7th 2024 and November 5th 2024.
