How to save money on car insurance

Car insurance can be costly, especially for younger drivers, but following this advice could save you money on your next policy.

How to save money on your car insurance

Insurance is one of the major expenses associated with running a car. Fortunately, there are some straightforward ways to save money on car insurance.

No specific advice can guarantee cheap car insurance for all, but what follows is a general guide to cutting the cost of your cover. We also explain the things you definitely shouldn’t do…

Buy the right car

Choosing the best car seems like an obvious start. Generally speaking, though, the more powerful a car’s engine, the costlier its insurance.

Going for a more expensive car will also bump up the cost of insurance, as will any model considered a theft-magnet. Ask anyone who drives an in-demand hot hatchback, such as a Volkswagen Golf R or Audi RS3.

If your aim is to save money on car insurance, a humble supermini beats a racy sports car. But for many reading this, that won’t matter. You already have your car and simply want the lowest quote. 

Shop around – and haggle 

Many drivers get complacent about car insurance. Put in the legwork, shop around and switch providers if necessary. Never simply accept your renewal quote.

Try the price comparison sites, such as Money Supermarket and Confused.com, but also contact insurance companies directly. It’s mostly up to chance which provider gives you the best deal, so it’s worth talking to all of them.

Research by Consumer Intelligence shows haggling with your existing provider at renewal time could save you money, too. One in five drivers who haggle are offered lower premiums by their existing insurer, which will frequently match the best price quoted elsewhere.

Get your story straight

cheap car insurance

There are a number of things you must tell an insurance company about yourself and your driving career. These include: how old you are, how long you’ve been driving, if you’ve had any accidents and when, what you do for work, where you live, how much you drive, and so on.

While you must tell the truth, there is some leeway. Your career for instance, can be listed in a number of different ways. A photographer might be a videographer or a multimedia assistant. A bricklayer is a builder is a labourer. By all means play with the variables, but don’t stray from the truth.

It’s worthwhile working out how far you typically drive in a year, too. The number of miles you cover will affect your quote. Lower is better, in most cases, and will help you save money on car insurance.

Consider different types of policy

There are generally two types of policy: third-party fire and theft, and fully comprehensive. If your car is worth anything more than about £1,500, we’d recommend fully comprehensive.

Third-party policies do not cover the cost of repairing or replacing your vehicle in the event of an accident – only the car or object you crash into. Third-party is often a last resort taken by new drivers to get their premium down.

Multi-car policies are interesting, however. Whether you’re living with your parents or have flown the nest, they can offer significant savings. Likewise, if you live with a partner and you both drive, it’s definitely worth checking whether you can share a multi-car policy.

Young drivers can also be added to a parent’s policy – fully-comp, with the ability to earn a no-claims bonus – for potentially a lot less than insuring themselves. 

Get a black box fitted

It’s not the most pleasing of solutions, but a black box telematics systen watching your every move behind the wheel can lead insurance companies to charge you less.

They have become a mainstay of the newly-passed young driver. Indeed, many companies insist on a black box for the youngest road users.

Move somewhere safer

car insurance

Location is a big factor in the cost of car insurance, including whether you park on the road or keep your car garaged, along with where you live. Big cities such as London and Birmingham normally equate to costlier insurance.

Perhaps you should consider moving away from Carjack Alley and closer to Upstanding Avenue.

Don’t crash

Obviously, not crashing is a good thing in general. Never mind the immediate stresses of a prang, for the next three years (at least), your insurance will be more expensive.

That’s all thanks to the no-claims bonus you shattered – along with somebody else’s tail light.

Get older

With age and experience come a great many things, including cheaper car insurance. Both 21 and 25 are big milestones when it comes to lower quotes.

If you can afford to go without a car, sit on your licence until you’re a bit older. Pass your test as early as possible, though. Remember, insurance companies will ask how long you’ve held your licence when totting up a quote.

How NOT to save money on car insurance

Car insurance

Be honest about everything – simple as that. Don’t lie about modifications, the miles you’ll be driving, where you live, what you do, or where the car is parked.

Any untruths will invalidate your policy in the event of an accident. It’s just not worth the risk.

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Motoring Research team
Motoring Research team
News, reviews, advice and features from the award-winning Motoring Resarch editorial team.

5 COMMENTS

  1. Since I’ve decided to buy a new car, this also means that I’m getting an insurance for my vehicle too. Thanks for the tips on how to save money when looking for insurance. With that, aside from choosing the right car, I’ll follow your tip to consider shopping around and do a price comparison.

  2. […] look elsewhere or haggle hard with your existing provider. You WILL save […]

  3. It’s interesting to know that the number of things that you tell your insurer the better, like how long, do you drive, what do you work for, how old you are, and other things will affect the cost. My husband and I just bought a new car, and we haven’t hired an insurance company because we’re looking for advice about how to choose the right insurer. We will definitely follow your advice, and we’ll make sure that we work with a reliable company.

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