This article contains links to our car insurance comparison page. If you buy a policy through our partner, Yourprimecar may earn a commission at no extra cost to you. This is general information, not advice about which policy is right for you.
Car insurance is one of the biggest fixed costs of running a car, and many UK drivers pay more than they need to. The good news: a few simple, honest changes can make a real difference to your premium, without cutting the cover you actually need.
Here are 10 practical ways to bring your car insurance down.
1. Compare quotes every time you renew
Since January 2022, the Financial Conduct Authority’s (FCA) pricing rules mean your insurer can’t charge you more to renew than it would charge a new customer for the same policy through the same channel. That stopped the old “loyalty penalty”, but it doesn’t mean your current insurer is the cheapest. Another insurer may still offer the same cover for less, so it pays to compare. You can compare car insurance quotes here.
2. Don’t leave it until the last minute
Comparison sites have reported that quotes are often cheaper when you buy a few weeks before your policy starts, rather than the day before. Put a reminder in your calendar about a month before renewal.
3. Pay annually if you can
Paying monthly is convenient, but it usually means borrowing the cost of your policy, with interest added. Check the APR on any monthly option. If you can afford to pay in one go, it’s usually the cheaper choice.
4. Set your excess carefully
Your excess is what you pay towards any claim. Raising your voluntary excess can lower your premium, but you’ll pay more if you claim. Only choose a total excess you could genuinely afford to pay at short notice.
5. Describe your job accurately
Insurers price occupations differently. Use the most accurate description of what you do. Some jobs can be described in more than one accurate way, and the price can differ. Never pick a job title that isn’t true: it can invalidate your policy.
6. Be realistic about your mileage
If you now drive less, for example because you work from home, update your estimated annual mileage. Lower mileage can mean a lower price, but underestimating can cause problems if you claim.
7. Keep your car secure
Where you keep your car overnight affects your price. A garage or driveway is usually cheaper to insure than on-street parking. Approved alarms, immobilisers and trackers can also help, so tell your insurer about them.
8. Consider a black box policy
Telematics, or “black box”, policies base part of your price on how you actually drive. They’re especially popular with younger and newer drivers, for whom standard premiums are often highest. Check any rules, such as curfews or mileage limits, before you buy.
9. Add an experienced named driver, honestly
Adding an experienced driver with a clean record can sometimes lower the price. But the main driver on the policy must be the person who drives the car most. Listing a parent as the main driver of a car their child mainly drives is called “fronting”. It’s fraud, and it can leave you uninsured.
10. Protect your no claims discount
Each claim-free year builds your no claims discount, which can make a big difference to your premium. For a small repair, it can sometimes cost less overall to pay yourself than to claim and lose part of your discount. Weigh it up before you claim.
What not to do
- Don’t give false or incomplete details to get a lower price. It can invalidate your policy when you need it most.
- Don’t forget to declare modifications to your car, such as new wheels or a remap.
- Never drive without insurance. The penalty can be a £300 fixed penalty and 6 points on your licence, and the case can go to court.
Ready to compare?
Once you’ve checked the points above, compare car insurance quotes from UK insurers. It’s free and there’s no obligation to buy.
Related: Faulty used car? Your rights under UK law (and exactly what to do)
Sources: Insurance Business, Financial Conduct Authority rules on renewal pricing; Quotezone, driving without insurance.
