How to get cheaper car insurance
Key takeaways
Comparing quotes is one of the best ways to cut car insurance costs, with 51% of consumers able to save up to £506
^ MoneySuperMarket data suggests the cheapest time to buy is around 30 days before your policy starts - comparing quotes on this day can save you up to £369
^ 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?
The easiest way to get cheaper car insurance is to compare quotes, buy at the right time and check whether your policy still suits your specific circumstances. Car insurance prices can vary widely between insurers because each provider calculates risk differently - your age, address, car, job, mileage, claims history, licence and no-claims discount can all affect your quote.
MoneySuperMarket can help you compare quotes from different insurers in one place, and 51% of consumers could save up to £482
When should I buy car insurance?
You will usually get cheaper car insurance if you compare quotes before your renewal date, and our data suggests the cheapest time to buy car insurance is around 30 days before your policy starts. Drivers who bought on the day their cover ended paid a median premium of £708
Don't leave it until the last minute if you can avoid it - we recommend you set a reminder a few weeks before your renewal date.
Should I auto-renew my car insurance?
You can auto-renew, but you should compare quotes before letting your policy renew as your renewal price will not always be the cheapest option. FCA rules mean your insurer cannot 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.
Check your renewal documents, compare quotes and make sure your details are still accurate - and if you switch, cancel your old policy before it renews.
Is comprehensive car insurance cheaper?
Comprehensive car insurance is often cheaper than lower levels of cover - in fact, MoneySuperMarket data shows comprehensive cover cost £518.56
This does not mean comprehensive cover will always be cheapest for you, so you should always compare all three levels before buying. Comprehensive cover also gives wider protection, including damage to your own car, as well as third-party claims.
Should I pay annually or monthly?
You should pay annually if you can afford it - monthly payments usually cost more overall as insurers often add interest or fees to the total cost. Our data shows drivers paying annually for comprehensive cover paid £518.56
Only pay annually if it is manageable - and remember. missing monthly payments can lead to cancelled cover, which can make future insurance harder or more expensive to arrange.
Should I increase my excess?
Increasing your voluntary excess can lower your premium, but you should only choose an amount you could afford to pay. Your excess is what you pay towards a claim, and it usually includes a compulsory excess set by the insurer as well as a voluntary excess chosen by you.
A higher voluntary excess can make your quote cheaper because you are taking on more of the claim cost yourself, but if you could not afford the excess after an accident, it is not a useful saving.
How can my no-claims discount reduce my premium?
Building a no-claims discount can make a big difference to your car insurance cost. MoneySuperMarket data shows drivers with no no-claims discount paid £1136.02
A no-claims discount builds when you go a year without making a claim, so it's worth thinking carefully before claiming for small repairs as losing your discount may cost more than paying for the work yourself.
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.
Can choosing a different car make insurance cheaper?
Yes, choosing a car make and model in a lower insurance group can help reduce your premium. Cars are placed into insurance groups from 1 to 50, and lower-group cars are usually cheaper to insure because they tend to be lower value, less powerful and cheaper to repair.
MoneySuperMarket data shows cars in groups 1-10 cost £420.17
How does my mileage affect car insurance?
Your mileage can affect your premium because the more you drive, the more chance you have of claiming. Our data shows premiums start to rise more clearly once drivers pass 20,000 miles a year - drivers covering 10,001-20,000 miles paid £508.95
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.
Can my job title affect my car insurance?
Yes, your job can affect your car insurance price as insurers use your occupation to assess risk. You must be honest, but some people can describe their job in more than one accurate way - for example, “writer” and “journalist” may be treated differently by insurers.
Do not choose a job title that is misleading, but if more than one accurate option fits your work, compare quotes using each one to see whether it changes your price. You can try the MoneySuperMarket Job Picker tool to see what your options are.
Can adding a named driver make insurance cheaper?
Yes, adding an experienced named driver can sometimes reduce your premium. This can help younger or newer drivers, especially if the named driver has a clean licence and strong driving history - but the named driver must genuinely use 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.
Should I remove drivers I no longer need?
Yes, removing drivers who do not use the car 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 the 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.
Can black box insurance save me money?
Black box insurance can help some drivers, especially young or new drivers. On average, the cheapest telematics policy for a 17-19 year old cost -£1202
Age group | % price difference: non-telematics vs telematics | Absolute price difference: non-telematics vs telematics |
|---|---|---|
17-19 | -41% | -£1202 |
20-29 | -18% | -£287 |
30-39 | 4% | £29 |
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.
Should I cut optional extras?
Yes, you should only pay for optional extras you are likely to use. Car insurance extras can include breakdown cover, legal cover, courtesy car cover, personal injury cover and windscreen cover, and MoneySuperMarket data shows 31%
Some extras are useful, but others may duplicate cover you already have elsewhere, so check what is included as standard before adding more.
Can where I park affect my premium?
Yes, 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, while parking on the road can sometimes cost more.
You should always be honest about where the car is usually kept, as if you say it is parked in a garage but usually leave it on the street, your insurer could question a future claim.
Can improving car security reduce my premium?
Improving car security can help reduce risk, but it will not always make 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.
Should I avoid car modifications?
Yes, avoiding unnecessary modifications can help keep insurance costs down - modifications can make your car more expensive to repair or more attractive to thieves. Performance upgrades, body kits, alloy wheels, lowered suspension and engine changes can all affect your premium.
You must tell your insurer about modifications - if you don't, your policy could be cancelled or a claim could be refused.
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.
Can driving safely reduce my car insurance?
Driving safely can help keep costs down over time as penalty points, convictions and claims can increase your premium. A clean driving record and a growing no-claims discount can make you look lower risk to insurers.
Avoid speeding, using your phone while driving and driving under the influence of alcohol or drugs - apart from the safety risk, convictions can make insurance much more expensive.
Should I take an advanced driving course?
An advanced driving course may help with confidence, but it will not always make insurance cheaper. Courses such as Pass Plus or advanced driver training may be recognised by some insurers, but discounts are not guaranteed so check quotes before paying for a course purely to reduce your premium.
If the course makes you a safer, more confident driver, it may still be worthwhile, especially if you are newly qualified.
How can young drivers get cheaper car insurance?
There are several ways young drivers may be able to reduce their insurance costs:
Choose a car in a lower insurance group, which is usually cheaper to insure
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
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 £1456.01
Compare 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
Mehdi Punjwani
Insurance specialist
Mehdi is a financial writer and editor with over six years of experience in personal finance. He has written for organisations and publications including Equifax, The AA, and USAToday, covering a...
Reviewer
Sara Newell
Commercial Director
Sara Newell is the Commercial Director for Motor & Home Insurance at MoneySuperMarket. With almost 20 years of experience in insurance, Sara has built a reputation as a results-driven leader who...
