How can I get cheaper car insurance?
Key takeaways
Comparing quotes is one of the best ways to cut car insurance costs, with MoneySuperMarket customers able to save up to £483[1]
Our data suggests the cheapest time to buy is 26 days before your policy starts - comparing quotes on this day can save you £168[2], on average
Paying annually, choosing the right level of cover and building a no-claims discount can all help lower your premium
How can I get cheaper car insurance?
There are several choices you can make when buying car insurance that could help lower your premium. We've ranked some of the most effective options by their potential savings, according to MoneySuperMarket data:
Way to save | Example saving based on MSM data | % of drivers who save with this policy option |
|---|---|---|
Choose fully comprehensive car insurance | £729.96[3] | 50%[4] |
Compare car insurance quotes | Up to £483[5] | 51% |
Pay annually not monthly | £172.68[6] | Available to all drivers, total saving will depend on your insurer |
Buy early | £168[2] (buying 26 days before renewal) | Available to all drivers |
Add a named driver | £122[2] (3 drivers named on policy) | Saving depends heavily on which drivers are added |
Lower your mileage | £34.08[3] (mileage reduced by 5,000 miles) | 50%[7] |
Increase your excess | £48.22[3] (excess set at £250 rather than £0) | 65%[8] |
Cut optional extras | £32[9] (average amount paid for add-ons) | Available to all drivers |
Add your driving licence to a quote | £23.34[3] | 82%[10] |
🚩 These are just averages, not guaranteed savings. Some show how changing a policy choice affects a quote, while others compare prices paid by different groups of drivers. Your actual savings will depend on your circumstances and insurer.
Other important factors that affect your car insurance price include your age, where you live, your driving experience, the car you own and how many years of no-claims discount you've built up.
How can a no-claims discount reduce my car insurance premium?
If you go a year or more without making a claim on your car insurance then many insurers will offer you a discount on your next premium (known as a no-claims discount or no-claims bonus). This can be as high as 60% after five years claim-free, according to The Association of British Insurers (ABI).
MoneySuperMarket data from August 2026 showed a difference of £779.60[11] between drivers who didn't have a no-claims bonus and drivers who had a 20 years no-claims discount. However, a substantial chunk of this price difference will be because a driver with limited driving experience will be seen as a greater risk by insurers than someone with 20 years or more experience.
Annual premiums by no claims discount length
💡Top tip: Use our no-claims discount tool to find out how much no-claims discount different car insurers offer.
Should I protect my no-claims discount?
Protecting your no-claims discount may be worth considering if you have several years built up.
No-claims discount protection is usually an optional extra, but it can let you make a set number of claims without losing your discount, depending on the policy.
It does not stop your overall premium from going up after a claim - your insurer can still see the claim on your record and may increase your base price at renewal.
➡️ Learn more about no claims discounts
How can I compare quotes to save on my car insurance?
Comparing car insurance quotes with MoneySuperMarket is a quick and easy way to find cheaper cover for your vehicle, with 51% of consumers saving up to £483[5].
Just tell us about yourself, your car and the cover you want, and we'll search the market for quotes that match your requirements.
You'll be able to compare deals by the overall cost, the level of protection offered and any optional extras you can add to your policy. Once you've found the one you want, just click through to the provider to finalise your purchase.
Why should I compare rather than auto-renew my car insurance?
You should compare quotes before letting your policy renew as your renewal price will not always be the cheapest option. FCA rules introduced in 2022 mean your insurer can no longer charge you more at renewal than it would charge an equivalent new customer through the same channel, but another insurer may still offer a better price.
That’s because each provider calculates risk differently - your age, address, car,job title, mileage, claims history,licence and no-claims discount can all affect your quote.
So, check when your car insurance is due for renewal, compare quotes and make sure your details are still accurate - and if you switch, cancel your old policy before it renews.
➡️ Learn more about comparing car insurance
Is comprehensive car insurance always the cheapest type?
Comprehensive car insurance is often cheaper than lower levels of cover. In fact, MoneySuperMarket data shows comprehensive cover cost £511.72[12], on average, compared with £589.40[13] for third-party, fire and theft and £867.93[14] for third-party only.
This does not mean comprehensive cover will always be cheapest for you, so you should always compare all three types of car insurance before buying.
Comprehensive cover gives wider protection, including damage to your own car as well as third-party claims. Even if it is not the cheapest for you it may still offer the best value for money, particularly if you have a new or expensive car.
➡️ Learn more about comprehensive car insurance
When is the best time to buy my car insurance to save money?
The best time to renew your car insurance is likely to be 26 days before your renewal date, according to our pricing data. Drivers who bought on the day their cover ended paid a median premium of £713[15], compared with £382[16] for those buying 26 days before.
The closer you leave it to your renewal date, the less you could save so shopping around early could really pay off. Insurers tend to charge more for last-minute renewals, as drivers who leave it late are often seen as higher risk.
But don't look too far in advance as our data shows average premiums climb back up for those renewing 30-plus days out.
Cheapest time to renew
💡Top tip: Your insurer should notify you by email or post around 28 days before your policy is due to be renewed but we recommend you also set yourself a reminder a few weeks before your renewal date.
➡️ Learn more about when to renew your car insurance
How does lowering my mileage reduce my car insurance premium?
If you drive fewer miles you’re generally seen by insurers as less likely to have an accident and make a claim so you may benefit from a reduced premium. If you’re a low-mileage driver (usually less than 6,000 miles per year) it may work out cheaper to have pay-as-you-go car insurance.
Our data suggests that reducing your mileage by 5,000 miles a year can net average savings of £34.08[3].
Annual premiums by mileage
💡Top tip: Be accurate when giving your mileage, as underestimating could cause problems if you claim, while overestimating may mean you pay more than you need to. Use our annual mileage calculator to help you.
➡️ Learn more about how mileage impacts car insurance
Why is paying for my car insurance annually cheaper?
Paying for your car insurance annually, if you can afford it, is usually cheaper overall than monthly payments as insurers often add interest or fees to monthly payments.
For example, drivers who paid annually for a third party fire and theft policy in August 2026 paid £166.21[25] less than drivers who paid for the same type of policy monthly.
Price by policy type
💡Top tip: If you pay monthly and you’re still struggling to afford it, speak to your insurer as missing monthly payments can lead to cancelled cover, which can make future insurance harder or more expensive to arrange.
➡️ Learn more about paying for your car insurance
Will adding a named driver always reduce my car insurance premium?
No, adding a named driver doesn’t always reduce your car insurance premium, it depends on the circumstances.
If you’re a younger or new driver then adding an experienced driver with a clean licence to your insurance may help lower your premium. You could, for example, add both your parents. Our data suggests that on average having three drivers named on a policy reduces the cost by £122[2].
But it can work the other way too. If you’re a parent and add your son or daughter to your car insurance it’s likely to raise your premium if they’re a new driver. For example, our data showed that adding a driver aged under 25 to a policy on average increased the annual cost by £586[2]
💡Top tip: Make sure that the named driver genuinely uses the car. Do not list someone else as the main driver if you are really the main driver - this is called fronting, and it can invalidate your insurance.
Can removing drivers I no longer need on my car insurance lower my premium?
Yes, removing drivers who do not use your car any longer may help reduce your premium. Adding a younger, inexperienced or higher-risk driver can increase your price, so if someone no longer needs to drive your car, remove them when you compare quotes or renew.
Make sure anyone who does drive the car is properly insured, and don't remove a driver just to save money if they still need regular access to the vehicle.
📣 Did you know? 48%[28]of car insurance policies contain a named driver alongside the main driver.
Should I cut optional extras to save on my car insurance?
Yes, you should cut optional extras if you’re not likely to use them or if they duplicate cover you already have elsewhere. For example, your bank account package might include breakdown cover.
It’s also worth seeing what is included as standard with a comprehensive car insurance policy compared to adding optional extras to third-party only or third-party, fire and theft policies. For example, windscreen cover, legal cover and courtesy car cover might all be standard with a comprehensive policy.
📣 Did you know? MoneySuperMarket data shows 31%[9] of motorists buy an add-on, costing £32[9] on average.
➡️ Learn more about the different types of car insurance
Why does increasing my excess mean I get cheaper car insurance?
Increasing your voluntary excess can make your car insurance cheaper because you are taking on more of the claim cost yourself.
In fact, 65%[8] of MoneySuperMarket customers get a cheaper car insurance quote by increasing their voluntary excess.
However, you should only choose an amount you can afford to pay in the event of a claim. Remember that as well as a voluntary excess you’ll need to pay a compulsory excess payment, which is set by your insurer, and is non-negotiable.
➡️ Learn more about car insurance excess
Why does adding my driving licence details to a car insurance quote save money?
Adding your driving licence details when you’re getting a car insurance quote lets insurers verify your details and assess your risk more accurately.
We’ve found that 82%[10] of drivers save by adding their licence details to a quote, with an average saving of £23.34[3]
➡️ Learn more about why insurers ask for your driving licence
Can choosing a different car make my insurance cheaper?
Yes, choosing a different car make and model can make your insurance cheaper as lower value, less powerful cars that are cheaper to repair are often cheaper to insure.
Take a look at car insurance groups and try to choose one from the lowest group (groups 1-10). MoneySuperMarket data shows cars in groups 1-10 cost £427.77[12] on average to insure, compared with £791.67[29] for cars in groups 41-50.
💡Top tip: Use our car insurance group checker to see which group your current car is in. If you’ve got a brand new model it will have a vehicle risk rating instead.
➡️ Learn more about car insurance groups
Can black box or telematics car insurance save me money?
Black box insurance (also known as telematics car insurance) can help some drivers to save money, especially if you’re a young driver or new driver.
According to MoneySuperMarket data, the youngest drivers (aged 17 to 19) who take out a telematics policy pay on average -£1590[30] less than they would do for non-telematics insurance.
However, drivers in their 30s actually paid £33[30] more for telematics cover, on average.
How does telematics car insurance work?
A black box, plug-in device or app tracks how you drive - it may look at speed, braking, cornering, mileage and the time of day you drive, and safer driving can help some drivers access cheaper cover.
It will not suit everyone - if you regularly drive late at night, cover high mileage or do not want your driving monitored, a standard policy may work better.
➡️ Learn more about telematics car insurance
Where is the cheapest place to park my car for insurance purposes?
Carports and driveways are often the cheapest places to park for insurance purposes. MoneySuperMarket data shows that drivers who park in a carport overnight pay £457[31], on average, compared to £594[31] for parking on a street near their home.
Where you keep your car overnight can affect your car insurance cost as insurers look at theft, vandalism and accident risk when pricing a policy. Parking on a driveway or in a garage may reduce risk.
You should always be honest about where the car is kept. If you say it is parked in a garage but usually leave it on the street, your insurer could question a future claim.
➡️ Learn more about how parking affects car insurance
Can improving car security reduce my premium?
Yes, improving car security can help reduce risk, which may make your insurance cheaper. Approved alarms, immobilisers, trackers and steering wheel locks can make your car harder to steal, and some insurers may offer lower quotes if your car has recognised security features.
This can be especially useful for valuable cars, keyless cars or cars kept in higher-risk areas, so it's worth telling your insurer about approved security devices when comparing quotes.
➡️ Learn more about car security devices
Will modifying my car increase my insurance premium?
Modifying your car doesn’t necessarily increase your insurance premium - it depends on the type of modification.
Performance upgrades, body kits, alloy wheels, lowered suspension and engine changes can all affect your premium if they make your car more expensive to repair or more attractive to thieves.
But practical, accessibility or security changes may have little effect, while some could potentially reduce the price depending on the insurer.
💡Top tip: You must tell your insurer about modifications - if you don't, your policy could be cancelled or a claim could be refused.
➡️ Learn more about modified car insurance
Can changing how I use my car save money?
Yes, choosing the right class of use can affect your premium - if you only use your car for social trips, you may not need commuting or business use. But if you drive to work, visit clients or travel between work sites, you need cover that matches how you use the car.
Don't choose a lower-use option if it isn't accurate, as a cheaper policy isn't useful if it doesn't cover your real driving.
➡️ Learn more about what class of use to choose
Will an advanced driving course reduce my premium?
An advanced driving course may help with confidence, but it will not always make insurance cheaper. Courses such as Pass Plus may be recognised by some insurers, but discounts are not guaranteed so check quotes before paying for a course purely to reduce your premium.
Our data shows that drivers aged 25-29 and 30-39 make the biggest savings by having Pass Plus.
💡Top tip: If the course makes you a safer, more confident driver, it could indirectly reduce your premiums by making it less likely that you will be involved in an accident and claim.
➡️ Learn more about advanced driving courses
Should I opt for multi-car insurance?
If you have more than one car at the same address it’s worth comparing quotes for multi-car insurance with standard car insurance. Insurers often offer significant discounts compared with taking out separate policies for each vehicle.
Savings can come from factors such as:
Loyalty discounts
Combined policy reductions
Lower administrative fees
Some insurers may also offer additional perks, like no-claims bonus protection across multiple vehicles.
➡️ Learn more about multi-car insurance
How can I get cheaper electric car insurance?
Although electric car insurance still tends to be higher than petrol or diesel car insurance, there are ways to lower costs, such as:
Comparing electric car insurance from different providers
Researching different electric car makes and models - look at the top 10 cheapest new electric cars to insure
➡️ Learn more about electric car insurance
How can I get cheaper car insurance if I’m a young driver?
If you’re a young driver there are several ways to get cheaper car insurance:
Choose a car in a lower insurance group, which is usually cheaper to insure or look at our list of the cheapest cars to insure in 2026
Consider black box (telematics) insurance if you are comfortable having your driving monitored
Add an experienced named driver who genuinely uses the car
Avoid unnecessary modifications, which can increase premiums
Build up a no-claims discount by driving safely and avoiding claims where possible
Compare quotes from multiple insurers before buying or renewing cover
Buy your policy in advance rather than leaving it until the last minute
📣 Did you know? Young drivers often pay more for car insurance because they have less driving experience and are statistically more likely to make a claim. MoneySuperMarket data shows drivers aged 17-19 paid £1545.31[40] on average, compared with £950.67[40] for drivers aged 20-29 and £616.94[40] for drivers aged 30-39.
➡️ Learn more about young drivers car insurance
Where can I find cheaper car insurance quotes?
Comparing car insurance quotes with MoneySuperMarket is a quick and easy way to find cheaper cover for your vehicle. Just tell us about yourself, your car and the cover you want, and we'll search the market for quotes that match your requirements.
You'll be able to compare deals by the overall cost, the level of protection offered and any optional extras you can add to your policy. Once you've found the one you want, just click through to the provider to finalise your purchase.
Author
Sarah Tooze
Car & Van Insurance Expert
Sarah Tooze has been a motoring journalist for more than 15 years, specialising in company cars and vans, and has won a number of awards during her career, including the Newspress ‘Automotive...
Reviewer
Beth Leslie
Senior Insurance Content Editor
Beth is an experienced writer and editor who specialises in financial and economic content. She is currently the Senior Insurance Content Editor for MoneySuperMarket. Beth is passionate about making...
