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How to get cheaper car insurance

Find cheaper car insurance and cut the cost of driving

Sara Newell
Written by  Sara Newell
5 min read
Updated: 25 Mar 2024

Use our money-saving tips to find the right car insurance policy at the right price and cut the cost of your premium.

In these times of financial uncertainty, every penny counts. Amidst the cost-of-living crisis, we are seeing rising costs everywhere and unfortunately, it’s no different for car insurance.

The easiest way to save money on car insurance is to shop around for the best deal via a comparison website such as MoneySuperMarket, which lets you compare quotes from more than 110* insurers.

Comparing car insurance quotes

Did you know that comparing car insurance quotes can save you up to £550* a year? But there are many other ways you could save money on your premium.

*51% of consumers could save up to £550.12. Consumer Intelligence, March 2024. UK Only.

Driver in car

The impact of the cost of living crisis on car insurance

The Association of British Insurers' (ABI) Motor Insurance Premium Tracker reported a £5 increase (1.3%) in the average motor policy to £419 in the second quarter of 2022.

This rise in prices is attributed to factors such as the higher value of second-hand cars, increased material costs, and parts supply chain issues. Despite the increases, there are still strategies to unearth the best deal on car insurance.

How to get cheaper car insurance

Choose fully comprehensive cover

Fully comprehensive car insurance offers a higher level of cover than the other two options: Third party only and Third party, fire, and theft. It's often cheaper because those who opt for less cover tend to file more claims.

Pay annually

Spreading the cost of your car insurance might feel cheaper than paying your premium in one go, but it will probably cost you more in the long run. Many insurance companies charge interest when customers opt to pay for their insurance monthly.

If you can't afford to pay in one go, it's worth considering other options such as paying on a 0% purchase credit card. Just be sure to 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

A higher voluntary excess can reduce premiums, but ensure it's an amount you can afford in the event you need to make a 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. While they can be useful, they will push up the cost of your car insurance package.

Add experienced drivers

Adding a more experienced named driver can reduce your premiums, especially if you are young and/or inexperienced behind the wheel.

Conversely, adding a younger, less experienced driver will increase your premium. Always be honest about who the main driver is to avoid invalidating your insurance.

Job title and usage

Your occupation can influence your premium. Even slight changes in job titles can affect your rates. If you work from home or take public transport to and from work, you may also be able to find a cheaper policy by searching for insurance “for social use”.

Drive fewer miles

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.

Improve car security

Enhancing your car's security with an alarm or immobiliser can lead to discounts with insurers.

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 smart

It’s always best to park your car off the road, or ideally in a locked garage, overnight if you can.

Consider claiming wisely

Building up a no-claims bonus can lead to significant discounts over time. Think twice before claiming for small damages.

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.

Embrace telematics

With a telematics car insurance policy, your insurer monitors your driving behavior, which can lead to savings for safe driving.

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 close to your renewal date

At renewal time, it's advised to compare deals to ensure the best deal for comparable coverage.

Car insurance is a necessary expense, but it doesn't have to break the bank. By being savvy and employing the strategies outlined above, you can navigate the cost-of-living crisis with a little more ease.

Remember, the key to keeping your car insurance premiums low is to stay informed, proactive, and drive safely. With the right approach, you can find a policy that provides the protection you need at a price that doesn't strain your finances.

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