How to get cheaper car insurance

Average car insurance prices in the UK are rising by at least £68 in 2022, says Which? leading many of us to look for ways to cut costs. The typical UK driver pays over £600 for insurance, with those in higher-risk areas paying substantially more – so what can you do?

In our guide on how to get cheaper car insurance, we provide 10 evidence-based ways you can lower your premiums and protect your vehicle.

How do I get cheaper insurance?

Switch your car insurance provider

According to the experts, ignoring your annual renewal and switching to a new car insurance provider could save you hundreds. Comparison sites can help you get several quotes all at once, enabling you to compare prices and levels of protection.

If you want to increase your savings, consider using a cashback service. These work by passing on incentives offered by insurance companies to you. In some cases, you could earn up to £50 cashback for your policy.

If you’re happy with your car insurance provider but not the renewal quote, then call them. If you can prove you can get the same level of coverage elsewhere, they’ll often beat it!

Finally, check for unnecessary or duplicated expenses. Many of us pay for extras such as breakdown cover or legal protection without even knowing it.

Pay insurance premiums annually 

Most of us prefer to spread our premiums over 12 months, and car insurance companies love it. When you’re paying monthly, you’re using a finance agreement and are paying your insurance company healthy rates of interest, in some cases over 10%.

You can cut the cost of your car insurance premium by paying it off upfront. You can even pay using a credit card if you want to

Check your job title

Companies use complicated algorithms to calculate your risk and your car insurance costs. Some professions are considered higher risk than others, so choose wisely when entering your details.

We’re not encouraging you to lie or even stretch the truth. Just be sure to check your job title and ensure it’s accurate, as it could save you money.

Enhance in-car security

A car alarm, immobiliser, steering wheel locks, and window etching are all effective security measures that could lower your premiums. However, before investing in security items, be sure to check that your insurance company will accept them. Factory-fitted security features are the gold standard, but even aftermarket alarms and additional security measures can cut costs.

Another option to cut insurance costs is to install a black box. These are devices provided by your insurance company that tracks your driving and give real-time information. You could save up to 60% on premiums or pay more if you’re a poor driver!

Install driveway bollards

In-car security devices act as a strong deterrent, but the reality is that a committed thief with the time and tools can get past them. But they’ll struggle to get past a stainless steel retractable bollard!

Telescopic bollards and retractable bollards can be installed on any solid driveway and present an immovable obstacle to thieves. Secure bollards are easy-to-install, impossible to break and impassable. Once installed, they’ll keep your premiums lower every year.

Add older drivers to your policy

It may seem counterintuitive, but adding older drivers to your policy can sometimes decrease it. It’s a particularly useful tactic for younger drivers who pay the highest premiums. The logic behind it is the more named drivers on a policy, the less time, the higher risk driver will spend behind the wheel. Older drivers are also likely to have a longer no claims bonus, which can help.

Before you start, ensure the named driver’s record is squeaky clean, or you could find your premium goes up.

Increase your excess

Your insurance excess is what you’ll pay before your insurance kicks in. The higher your excess, the lower your premiums. The average UK car insurance excess is £250. Select a higher excess, and your premiums will go down. However, you’ll be responsible for paying more toward the repair or replacement of your vehicle.

Cut out the commuting

Driving during peak periods, such as the morning and evening rush hours, exposes you to more risk, which translates into higher premiums. You can cut costs considerably by opting for social use only when selecting your insurance. But beware, if you’re involved in an accident while driving to or from work or for business, your insurance company may refuse to payout.

Swap for a smaller vehicle

Larger vehicles with bigger engines pose a more significant risk and attract higher insurance premiums. Every car is classified into one of 50 groups by insurance companies. Group one vehicles (Fiat UNO) are the cheapest to insure, and group 50 (Ferrari) are the most expensive.

Even a slightly smaller or less powerful car can save you cash on your premiums.

Check your renewal date

Did you know that when you buy your insurance could impact your premiums? Experts say that renewing your insurance 26 days before it runs out is the best approach. Access to a calendar could be as cost-effective as installing a car alarm.

Similarly, comparison sites offer the best prices around three weeks before your current policy is due to end. According to data from GoCompare, drivers could save over £300 simply by renewing earlier.

Summary

The reality is that car insurance costs are going up at a time when everything else is increasing in price. Following the advice and tips here should help you get your premiums as low as possible.