How to get cheap car insurance
Use our pocket-friendly tips to save money on your next insurance policy and get the cheapest deal that suits your needs.
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How to lower the cost of your car insurance
It’s no secret we’re all looking to save cash wherever possible, and car insurance is one area people will look to.
Car insurance is non-negotiable if you drive a car, so you’ll want to get the cheapest deal where possible while still having the right level of cover.
There may be ways that you can cut back on car insurance spending and still be well covered – you just need to know what factors to consider – things like your job, where you park, and the type of insurance you get all make a difference.
Why is car insurance so expensive?
Between 1 April and 30 June 2022, drivers paid 6% more than they had previously for car insurance.
While insurance costs decreased in 2021 – probably due to the COVID-19 pandemic – 2022 saw a steady increase, but they aren’t at an all-time high.
The average cost of car insurance between 1 April and 30 June 2019 was £609, but that figure dropped to £522 in the same period of 2021.
Between May 2021 and June 2024, the quoted price of car insurance rose 82%.
Tips for getting the cheapest car insurance
If you want to cut back your spending when it comes to car insurance, here are a few handy tips you can use to try and get cheaper prices.
1) Cover fewer miles
When it comes to getting your car insurance quote, you might want to consider if you can cover a smaller number of miles per year.
Less mileage means less driving, and therefore less risk in the eyes of your insurer – this usually means your car insurance will be cheaper.
Just remember to let your insurer know if you go over your predicted mileage, otherwise any claims that come after that point might not be valid on your policy.
It might be tempting to overestimate your mileage so you’re never caught out, but your car insurance may be more expensive if you do this.
Do be wary of the mileage – if you incorrectly predict your annual mileage, you can actually invalidate your policy.
2) Consider how you describe your job
You should always be honest and accurate when setting up your car insurance, as the way you describe your job could have an impact on the price you pay.
If you’re a nurse then you may find that using your full job title – like ‘Registered Nurse’ or ‘Occupational Health Nurse’ – could bring costs down.
3) Have a higher voluntary excess
One way you may be able to cut down your monthly payments is to go for a higher voluntary excess – this would mean that you’ll have to pay more if you need to make a claim.
This is ideal for monthly payments, but you will still need to pay the higher amount if you do need to claim on your insurance.
4) Consider your cover type
There are a few different types of car insurance cover to pick from, and each comes with a different price.
Comprehensive insurance is usually the most expensive and is better for cars that are worth more, whereas third party, fire and theft cover might be enough if you drive an older model that isn’t high value.
In this scenario, should you have an accident that's your fault, your insurance will only cover the damage to the other vehicle, so you'll need to pay for the repairs to your car yourself.
If you lease your car or have finance left to pay, you might be required by your contract with these providers to have a specific level of cover.
Make sure you check this before choosing which insurance option to go for – any car on PCP/HP finance will need fully comprehensive insurance.
5) Consider where to park
If you have a garage or driveway, make sure you let the insurer know this is where you’ll be parking overnight, as you may see a drop in car insurance prices.
In theory, parking off the road decreases your chances of your car being stolen or vandalised in the night, so insurers are more likely to offer lower rates.
6) Don’t modify your car
Modifying your car means that you’re making changes that aren’t factory standard – this could mean body kits, performance upgrades, or flashy alloys.
These might look great, but insurers will know that modified cars are more expensive to repair and might require you to pay more for your insurance.
7) Could a black box help?
A telematics policy means you’ll have a ‘black box’ fitted in your car to monitor the standard of your driving.
Your premiums will be based on the way you drive and could be cheaper if you’re found to be a sensible driver.
These kinds of policies are ideal for cutting the costs of your insurance, but they might impose restrictions like being unable to drive after a certain time of night.
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8) Take an advanced driving course
Show your insurer that you’re a top-tier driver by taking an additional driving course, like Pass Plus.
These types of courses may get you discount on your car insurance, especially if you’re a younger driver without a no-claims bonus.
Not all insurers will take these courses into consideration, so you’ll need to decide whether the cost of the course is worth it for the potential savings.
9) Shop around for the best price
Not all providers will offer the same rates, so it’s a good idea to shop around and get a few quotes.
You could also use online comparison sites to find the best rates for your needs.
10) Keep your no-claims bonus in mind
We know that not all car accidents or bumps are our fault, but having no claims on your car insurance will give you a lower rate – insurers will see you as less risk if they know you’ve spent years without making a claim.
When is the best time to renew your car insurance?
You’re able to purchase car insurance up to 29 days before your policy starts, so you get a good amount of time to search for quotes.
Most research shows that the earlier you lock in your policy, the better the rates, so start shopping around ahead of time – insurers change their prices all the time.