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25 ways to save money on your Car Insurance

Rebecca Bebbington·Aug 13, 2021

If you’ve ever been involved in an accident or your vehicle has broken down unexpectedly, you’re probably all the more grateful for having your car insurance policy in place.

However, there is no question that Car Insurance adds to the expense of driving, and as much as we may begrudge paying our premiums at times, we simply can’t drive without it!

But one question on everyone’s mind is how exactly can you cut the cost of your Car Insurance policy?

The team here at have combined our money-saving expertise to compile 25 tips and tricks to help you shop savvy for your next policy.

1) Start shopping early!

It’s no secret that it pays to be prepared. Whether you pay monthly or annually for your insurance, it’s recommended you start shopping around for your new policy 20-26 days before it is due to start. Comparison sites tend to increase their premiums the closer you are to your start date. Research obtained from MoneySavingExpert concluded that the cheapest time to get your quote is 24 days before the start date.

Major comparison sites including Money Supermarket, and GoCompare are the best places to search. Make sure you’re saving your quotes along the way as they can change with each search.

2) Shop around before accepting your Renewal Price

Shop around before accepting your renewal

If you’re an experienced driver. You will probably be all too familiar with costly renewal prices. Despite this, many people fall into the trap of allowing their insurance to automatically renew – meaning they’re stuck paying the price.

You will typically be notified up to 2 weeks before your insurance is due to renew. But if you want to be extra savvy and guarantee the best possible prices, keep a note of when your renewal day is coming and start shopping up to 24 days before.

You’re almost always guaranteed to secure a huge saving when shopping around compared with accepting your renewal price.

3) Use all the Comparison Sites

Use all of the price comparison websites.

Your best bet for securing the cheapest possible price for your car insurance is to use price comparison sites. Compare the Market, and GoCompare are the three major comparison sites that compare hundreds of prices tailored towards your insurance needs.

One of our top tips for using comparison sites is to clear your internet browsers ‘cookies’ in between searches. If you’re making regular searches on the same site, you will notice the prices may slightly increase on return visits. To avoid this, always save your quotes once you get the right price – this means the provider has to stick with the original quote.

Remember, comparison sites don’t use all insurance providers out there. In fact, AVIVA and Direct Line do not affiliate themselves with price comparison sites, so It’s worth doing a direct search here as they can often be cheaper as they don’t have any commissions to pay.

4) Haggle your way to a Lower Premium

Haggling with your renewal provider is a great way to get them to reduce your premium.

There’s no shame in haggling your way to a lower premium. There is plenty of room to haggle as most insurers on comparison sites pay some sort of commission. Once you receive your quote, why not give them a call to see if a cheaper rate is at all possible, you may be surprised at what the power of haggling can achieve!

5) New Customer Offers

If you’re taking out a new insurance policy, always keep an eye out for New Customer deals! You will typically find these when you shop directly and offer considerably lower prices than renewal quotes. Also, make sure you compare your deal across comparison sites as there may be cheaper policies to suit your criteria out there.

6) Pay for the year

Paying for your car insurance annually is cheaper than paying monthly instalments. When you pay monthly, interest is typically added to the cost as the insurer is essentially ‘lending’ you the money for your repayments.

Don’t want to pay interest? If you want to pay annually for your policy but can’t afford the lump sum, why not consider using a 0% interest-free credit card. This means you can spread the cost of your repayments over several months.

7) Don’t pay for the cover you don’t want

Fully comprehensive or third party fire and theft, just make sure you have the appropriate cover in place.

Be careful when comparing prices online that added extras such as a courtesy car or windscreen cover are included as standard. Usually, you will have to pay for these extras so before you do, consider whether you need them or could do without. While they may seem small, these extras can accumulate.

8) Park off-road where possible

If you park on the driveway at home, lock your car in your garage at night or use your works car park every day, you could be paying less for your insurance. While you may think this is unimportant information, your car is considered to be in less danger of being stolen or vandalised as opposed to being parked on the street. Make sure you tell your insurer the details of where your car is parked both during the day and overnight.

9) Improve your Cars Security (immobiliser/alarm)

Car alarms and immobilisers are a great deterrent.

If you don’t have access to off-road parking at your home or during the day, improving the security of your car is another great way to lower your premium and protect your vehicle. Adding security enhancing devices such as a tracking device, an alarm or immobiliser will help deter any threat and help you save money on your insurance.

10) Take an Advanced Driving Course

Take and advanced driving course for lower premiums.

Many insurers provide discounts for those who have completed an approved driving course such as Pass Plus. Essentially, this proves to your insurer that you are a safe and knowledgeable driver. Make sure you check with your insurer that they offer a discount for this course and any other course you take, as you want the cost of the course to translate into insurance savings.

11) Add a Named Driver

Adding a named driver onto your policy is a great way to lower your premium as well as giving others access to your vehicle. Insurers assume that responsibilities are shared therefore you will spend less time driving. However, you will need to be careful with who you choose to add to your policy as someone with a history of claims can have the opposite effect and increase your premium.

Adding an older and more experienced driver is your safest bet for lowering the cost of your insurance as they typically have accumulated a respectable no claims bonus.

However, make sure that the person who will be driving the vehicle the most is listed as the main driver. If you list a more experienced driver as the main driver in a bid to lower your premium, you will be committing an illegal practice known as ‘fronting.

Whether you’re adding your child onto your insurance or an older driver, if you notice a sudden change to the cost of your premium, it’s worth looking into the details of the driver to determine if it is worthwhile financially.

12) Build up your own No Claims Bonus

No claims bonus is a big thumbs up for saving money.

Insurers offer No Claims Discounts to those who do not claim on their insurance year after year. The more years you go without claiming, the more likely you are to save on your car insurance as you are considered less risky. Remember to accurately state your years No Claims – some insurers may require proof of your No Claims if you do need to put a claim in, so always be honest.

13) Drop your Annual Mileage

Not in the office as much? Driving Less? Lower your annual milage.

If working from home has become a new way of life due to covid, or a change in circumstances means you’re driving much less, consider dropping your annual mileage. If you spend less time driving, you’re less at risk of being involved in an accident – this means your premium will ultimately be lower.

14) Drive Safe!

Drive safe, keep your eyes on the road!

While it may sound pedantic, driving safely is one of the most simple ways to ensure your premium stays within budget. Whether you incur a penalty, have to place a claim or somebody places a claim against you, all of these factors mean you will see an increase in your car insurance policy.

Ways to stay safe on the road:-

  • Drive within the speed limits to avoid penalties
  • Never drive after consuming illegal substances
  • Never drive over the blood alcohol limit
  • Always wear a seatbelt
  • Observe all road signs and traffic light signals
  • Always drive on the left
  • Keep your eyes on the road, no distractions and KEEP OFF YOUR MOBILE PHONE!

Lastly, use all your knowledge on road safety and driving every day while utilising your vehicle to keep both yourself and others safe on the road.

15) Add a Black Box

Black Box (telematics) monitors how safely you drive and can lead to cheaper premiums.

If you’re a first-time driver or have only had your license for 1-2 years, opting for a Black Box or Telematic Device is a great way to reduce the cost of your insurance both when you take out the policy and at renewal. With insurance being considerably more expensive for first-time drivers, a Black Box is a great way to prove you are a safe driver – at least for your first year.

What’s more, if you have received any motoring convictions, a Black Box is ideal for proving you can drive safely!

16) Describe your job carefully

Describe your job carefully.

Take into consideration how you describe your job next time you are shopping for car insurance, as your job title can affect how much you pay for your insurance. Even slight tweaks can reduce your premium!

For instance, describing yourself as a cleaning contractor, opposed to a cleaner, or a writer instead of a journalist is likely to lower the cost of your insurance. However, remember if you provide false information, you may be refused a claim.

17) Consider where you Live & Crime Rates in your Area

Lock picking a car door.

Your address, paired with crime rates in your area will directly impact the cost of your insurance. For obvious reasons, if crime rates are significantly higher in your area, the risk to your vehicle is greater. If you are soon to be changing your address, it’s worth doing some research so you are not alarmed if your insurance increases.

It isn’t just crime rates you need to consider either, if the population in your area has an average age of 25, you will likely see your insurance increase compared with areas that have an average age of 45.

Statistics also show that those who rent properties will pay more for their insurance than those who own their own home.

However, if you happen to park your car on a driveway or have access to a locked garage or other off-road parking, this could help lower your premium.

18) Multi-Car Deals

Multi-Car Deals

Whether you drive 2 or more vehicles or you have a clan of vehicles under one roof, multi-car insurance is a great way to save on your car insurance. Instead of having a different policy for each vehicle, insuring multiple cars on one policy could be considerably cheaper.

Once you take out a multi-car insurance policy, you will receive an immediate discount. Every car you add to your multi-car deal will also receive its own discount – Ideal for families under one roof, businesses or groups of friends.

19) Use a Cashback site!

Using comparison sites is a great way to narrow down the cheapest provider for you. However, take it one step further and check if you can grab any money back through a cashback website! Cashback sites pay you back a cut of their commission if you click through to insurers or brokers websites via their website.

20) Free Insurance for Young Drivers (available for 12 months with some finance deals)

Free Insurance for Young Drivers with some finance deals.

The idea of having a new car with no insurance for the first 12 months sounds like a dream for first-time drivers and it can quite easily become a reality! With PCP, HP and other finance deals, many dealerships offer 12 months of free insurance with new, financed cars from £202 per month. There are plenty of great deals out there with most deals included on group 1 vehicles or head down to your local car dealership to see what’s on offer.

21) Temporary insurance for students at Uni

If you’re home from university for the weekend or the holidays, did you know you can take out temporary car insurance for up to 42 days? There’s nothing worse than being stuck without a vehicle so why not take out temporary insurance on your parents or friends car while visiting?

Schemes like Marmalade allow drivers aged 18-27 to make use of this great incentive! Students must be full license holders and not be insuring their own vehicles.

22) Increase your Excess Cost

Excess is the amount of money you will need to pay towards the cost of any claim you make. When you increase your voluntary excess, you are essentially agreeing to pay more towards the cost of repairs if you should make a claim. However, this can reduce the cost of your car insurance. Be careful to only increase your excess to an amount that you could afford to pay.

23) Try not to modify your car from factory specifications

Modded BMW

If you’ve ever been tempted to add a spoiler onto your rear bumper or upgrade your exhaust system, be aware that modifying your vehicle can be not only difficult to insure but significantly more expensive. The best way to ensure your insurance is as affordable as possible, is to maintain factory specifications on your vehicle.

24) Old banger or cheap car? Is it better to go for 3rd Party Fire & Theft?

Ford KA can be picked up for under a grand.

To drive a car in the UK, you will need third-party insurance as a minimum level of cover, but does this mean it is the cheapest? Third-party cover protects you if you damage someone else’ car or you injure someone else while driving – it offers no protection for yourself or your own vehicle.

On the other hand, fully comprehensive cover is the highest level of protection therefore people assume it is the most expensive, but this isn’t always the case. In fact, fully comprehensive insurance is often cheaper than third-party cover.

Statistically, those who take out third-party cover are more likely to make a claim resulting in higher premiums for this type of insurance!

25) Choose a car from a cheap Insurance Group

The cost of your car insurance is based on a whole host of factors, many of which we can’t control, such as our address or our job. However, the car we are insuring plays a big role in determining the cost of our cover.

The price of your cover will be partially based on what group your vehicle comes from. Group 1 vehicles, which include the Ford KA, Volkswagen Polo Match Evo or the Skoda Fabia SE for example, are some of the cheapest vehicles to insure.

The group your vehicle sits in is determined by various factors including speed, the age of your vehicle and of course the manufacturer. If you’re on the lookout for cheaper insurance, consider opting for a car which sits in groups 1-3. You can check which group your vehicle is in on Money Supermarket.

Drive Safe and Save Money

Insurance aside, there are times when our vehicles need work and maintenance to ensure they’re safe to drive. Whether it’s a new pair of tyres, or you need to book in for an MOT, we here at want to ensure you never pay over the odds keeping your car’s health in check.

Shop through our Motoring Deals Page to see what money-saving offers and you can grab for top motoring store discounts with Halfords promo codes and even save money on new tyres with Just Tyres discount codes or Kwik Fit voucher codes. We understand that owning a car can be pricey which is why we work to bring you fantastic savings on the things you need! Check out what bargains you can bag today.

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