10 tips on how to get cheaper car insurance

Products featured in this article are independently selected by This is Money's specialist journalists. If you open an account using links which have an asterisk, This is Money will

earn an affiliate commission. We do not allow this to affect our editorial independence. By SAM BROMLEY Updated: 08:24 EDT, 30 May 2025 When you get a sharp hike at renewal, it pays to think

about how to get cheaper car insurance. The good news for drivers is that the average cost of car insurance is falling, so switching can really pay off. But most stay on the same policy,

potentially missing out on hundreds of pounds of savings. Even if your renewal drops, it’s worth seeing if you can get a cheaper deal elsewhere. It’s quick to compare car insurance quotes

through a comparison site, which gives you the best prices across lots of insurers in less than five minutes. You should also compare the quality of car insurance policies offered. But

switching isn't the only way to help you get cheaper car insurance. Follow our ten steps below and see if you could lower your premiums further. > Lee Boyce: My car insurance renewal

dropped 23% - this could be good news for you  SAVE MONEY ON CAR INSURANCE  Car insurance bills have rocketed in recent years, so comparing rival policies to find the best deal is vital.

Many drivers have discovered renewal quotes have shot up by hundreds of pounds, but searching for better deals on comparison sites can deliver much keener rates. It takes minutes to compare

car insurance, but that relatively quick job can really pay off. This is Money suggests you try at least two of these: MoneySupermarket* Confused.com* Uswitch* * Affiliate links: If you take

out a product This is Money may earn a commission. This does not affect our editorial independence.     HOW CAN I GET CHEAPER CAR INSURANCE? 1. Shop around  Drivers can save hundreds of

pounds if they shop around for more affordable car insurance when renewing. Getting a quote is quick using price comparison websites for car insurance. Put in your details, the excess you’re

willing to pay and the mileage you’ll drive and compare quotes that come up. Insurers look at the information you give when asking for a quote and decide how much of a risk you are based on

age, driving experience, type of car, any previous claims and other factors.  Here are three top tips when comparing quotes:  * Make sure you’re comparing like-for-like. Some policies may

seem cheaper on the surface, but on closer inspection they might not offer the same level of cover.  * Some insurers don't fully feature on all comparison sites, such as Direct Line, so

research these options too.   * If you're generally happy with your insurer but don’t like your renewal price, tell them the cheapest quote you’ve received elsewhere and ask them to at

least match it.  Customers should also be aware that insurers will try to include administration fees for changes to a policy mid-term. This fee, usually between £25 and £50, will be added

if you change a vehicle or your home address. You can try asking for this fee to be waived if it’s a minor adaptation, such as changing from a regular number plate to a personalised

registration number.  2. Consider protecting your no-claims bonus  A long no-claims bonus, or no-claims discount, is the best way of cutting car insurance costs, because it reduces the price

of your car insurance for each year you don’t claim. You can often protect your no-claims bonus by paying extra to add the cover to your policy. Protecting your no-claims bonus means you

can claim on your car insurance up to a specified limit, or in certain circumstances, without affecting the bonus. This may increase the premium slightly, but if you’ve built up a no-claims

bonus over several years, it protects what can be up to an 80 per cent discount. However, the definition of a protected no-claims bonus can vary widely between insurers. Though accidents

caused by another driver will normally have no impact on such a bonus, those caused by the insured driver could. The key is to always check the policy carefully. Check whether the extra fee

is reasonable considering your overall budget and the peace of mind it gives you. 3. Consider a telematics (black box) policy  You could get substantially cheaper car insurance by taking out

a black box policy and proving you’re a good driver. Black box policies are where the insurer installs a system in your car to monitor your driving. They’re designed to reward those who

drive carefully. Many of these devices are aimed towards younger motorists, who can dramatically reduce their high premiums by installing one and proving they’re a sensible driver. However,

any motorist can get one. Officially called telematics, these devices check your speed, how aggressively you accelerate and brake, and how cautiously you drive. They also record whether

you’re on the road at 'dangerous' times, for example in the early hours of the morning. Some insurers even offer an upfront discount if you take out a telematics policy. 4. Check

named drivers (they don't always make car insurance cheaper)    Another way to cut premiums is to make sure that only regular drivers are named on the policy. A young driver adding a

more experienced driver to a policy may see their premium go down, because insurers can see this as lower risk. But costs may go up for an older, experienced driver who adds a younger one to

the policy, especially if they have a large or higher-powered vehicle. The younger driver may be seen as higher risk and may not have a no-claims bonus. Insurers have also been cracking

down on fronting, where parents insure cars in their name for children to cut costs. Fronting is fraud and voids the policy. If you’re the policyholder on a car driven by your children, make

sure that you’re its main driver or that you tell the insurer otherwise. You can always add someone for a few days when they really need to drive the car. 5. Pay annually When taking out a

new policy, drivers will be given the option either to pay for the whole year upfront or in monthly instalments. Many opt for the monthly payments as it means not having to part with a large

sum of money in one go. But if you can afford to pay your yearly premium upfront, you could save money. This is because insurers usually charge you interest on the monthly instalments. It’s

worth asking them if there’s a difference and if so, how much it is. 6. Increase your voluntary excess (but be careful)    Increasing your voluntary excess can make car insurance more

affordable, but make sure you’d be able to pay the total excess in the event of a claim. Car insurance excesses are made up of two parts: * Voluntary excess: the amount a driver agrees to

pay towards the cost of a claim, and you can change it when getting a quote or buying a policy. When a driver increases the voluntary excess, it usually results in a lower premium. *

Compulsory excess: set by the insurer and can’t be changed or negotiated. You pay both excesses if you need to claim – they get added together for the total excess. When quoting or buying a

car insurance policy, it's important to make sure you’d be able to afford the total excess. Be careful when increasing the voluntary excess in return for lower premiums. If you can’t

afford the total excess, your insurer may refuse the claim or deduct it from what it pays out. It's also worth bearing in mind that you must be claiming for more than the total excess

otherwise the insurer won’t pay out. 7. Secure your car Fitting an approved alarm, immobiliser or tracking device can make car insurance cheaper. Many newer cars will come with these as

standard, so make sure you check if you have them and then declare them. Even if you can’t recoup the costs through your insurance, a deterrent for thieves can save you hassle in the long

run and the prospect of having to claim for a theft further down the line. Look for Thatcham-approved devices – this is an industry benchmark which is recognised by most insurers. 8. Do

fewer miles A lower mileage can help keep insurance costs down. The fewer miles you drive, the less time you’re on the road so you're less likely to have an accident. Insurers will

often look favourably on this lower risk and price your premiums lower. But you must be honest about your annual mileage as inaccuracy will jeopardise any claim. For this reason it’s also

important you tell your insurer if you think you’re likely to go over the mileage you were quoted for, even though this may result in paying more money. Check what you’ve told your insurer

about how you use the car – known as its class of use. If you don't use your car to drive to work or for business, both things that increase your premium, you may be able to get a

cheaper rate. Keep in mind that declaring the wrong class of use could invalidate your policy, so you must tell your insurer about any changes straight away. 9. Drive a car model that's

cheaper to insure    If you decide to change your car, ask your insurer whether the model will increase the premium. Choosing the right model of car is especially important for young

drivers, as they typically face the highest premiums and won’t want to choose a car model that makes it even more expensive. Lots of factors can influence how much a car model costs to

insure such as: * engine size (normally, the bigger engine your car has, the higher the insurance premium) * security features * repair costs * customised modifications like spoilers or

wheel rims, which can increase insurance premiums Older cars are usually worth less, so they’re cheaper to replace, but they also have fewer modern safety features, which can also make them

more of a risk. The insurance industry uses a grouping system for vehicles to help it price premiums. There are 50 groups, with vehicles at the lower end of the scale being the cheapest to

insure. Cars in group 1-10 include versions of the Skoda Fabia, Fiat 500 and Hyundai i10. Compare the Market has a tool you can use to check a car model’s group.  10. Store your car safely 

If you’re using your garage for storage, clear it out and use it for your car. Insurers generally like cars kept in locked garages overnight and it can cut your premium. Aside from the

benefit of not having to scrape the ice off in winter, you’re reducing the risk of theft. Keep in mind however that using your garage doesn’t always make car insurance significantly cheaper

– your insurer will also price in the risk that the garage itself presents to your car, for example the potential for damage when you drive in and out. BONUS TIPS THAT COULD SAVE YOU MONEY

ON CAR INSURANCE Check any no-claims bonus after being a named driver If you’ve previously been insured as an additional driver on another policy, see if you can transfer any no claims bonus

to your own car insurance policy from the same provider. Don't pay for cover you don't want   Some policies include extra benefits, such as a courtesy car, windscreen cover,

breakdown cover and motor legal protection. All of these could come in handy, but they’ll almost certainly increase your premium. If you’re willing to risk it, taking these extras off your

policy could save you money in the short-term. Be careful with your job description    Think about how you describe your job. While you might think this doesn’t matter much, certain jobs are

considered higher-risk than others by insurance providers. These tend to be jobs that may require you to drive to more dangerous areas, or travel at higher-risk times of day.  Insurers list

multiple job titles that you can choose from. The one you pick must match what the type of work you do, otherwise it could affect any future claim. However, a number of job titles could all

apply to what you do and it's possible that the insurer rates the risk of each one differently. You can pick the one that gives you a cheaper deal, provided it's honest and

accurate. Don’t wait until renewal to compare quotes It’s often the case that quotes will get more expensive as you get closer to renewal, so it’s best to shop around as soon as your current

car insurance provider tells you how much your cost is changing by. MoneySupermarket suggests you can get the cheapest quotes 20 to 27 days before your current policy expires. When you get

a quote, you can 'lock in' the price you're given on that day. The research also found that the closer to renewal date you get, the more you could end up paying for your

premiums. COMPARE CAR INSURANCE QUOTES It takes minutes to compare car insurance, but that relatively quick job can really pay off. This is Money suggests you try at least two of these:

MoneySupermarket* Confused.com* Uswitch* * Affiliate links: If you take out a product This is Money may earn a commission. This does not affect our editorial independence.