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How To Get Cheaper Car Insurance – A 12-Step Guide

The price of your insurance can often feel out of your control, especially if your age, location, or personal driving history are not looked upon favourably. There are, however, a number of ways on how to get cheaper car insurance. Ranging from the basics to the more in-depth, our top tips on how to get cheap car insurance can be used by anybody, regardless of circumstances.

Picking the right car

If you are in the process of choosing a car, it is well worth understanding how the vehicle you choose may affect your insurance costs. Every car in the UK market belongs to one of 50 car insurance groups. Your car’s insurance group rating is fundamental in receiving your quote. The group rating of car’s is resultant of a number of factors but crucial ones to keep in mind are its value should it need to be replaced and its power. Cars that are more expensive and powerful will always be considered higher risk by insurers so opting for cars that are cheaper and with smaller engines can cut the costs of premiums sizeably.

Avoiding car modifications where possible

In the same way that your car’s price and power can affect the overall cost of your insurance, so can the way in which it has been modified. Regardless of whether it is for aesthetic or performance purposes, modifying your car can mean a noticeable increase in your premiums. This is because, to insurance providers, modified cars present a number of increased risks: theft, cost of repair, and likelihood of claims for cars with increased performance. This is why it is best, if possible, to avoid modifications for your car if you are looking to cut down on insurance costs.

Increasing your voluntary excess

Increasing the amount that you would voluntarily pay out in the event of a claim is a common way to reduce the cost of your insurance. This should, however, be a realistic amount. If you are unable to afford the amount agreed with your provider, this can mean losing your car for a significant period of time.

Paying annually rather than monthly

When choosing a policy, it may seem like a better deal for your current circumstances to pay monthly rather than up front for your cover. When taking out monthly cover, however, you are effectively loaning the annual amount from the provider. This means that you will be expected to pay interest every month with this usually ranging anywhere from 13% to 33% APR. So, although it may appear better initially, opting to pay annually can make for significant savings. 

Telematics car insurance

Telematics car insurance, or a ‘black box’ policy, is another option that can cut the price of your insurance if you are a safe driver. By monitoring your driving habits, a telematics policy will reward those that obey speed limits and do not accelerate or decelerate excessively. This can allow for cover that is more reflective of your driving behaviour rather than anything out of your control. 

Reducing your annual mileage

The amount that you drive will, inevitably, have a large influence over the cost of your insurance. By spending much more time on the road you present a larger risk to providers simply by being on the road more often. This is why it is worthwhile cutting back on unnecessary journeys in your car to reduce its annual mileage. Doing so can lead to much cheaper insurance.

Including a named driver on your policy

Putting a named driver on your policy is another common way to reduce the price of your premiums. Much like reducing your annual mileage, by adding a named driver to your policy this can often lead to savings simply due to you spending less time on the road. Savings, however, cannot simply be made by adding any driver to your policy. It is by adding a named driver with a good driving record and years of experience on the road that noticeable savings can be made. It is also worth remembering that if you are found to be the only driver of your vehicle despite having a named driver on your policy that your cover can be invalidated in the event of an accident. This is called ‘fronting’ and is a form of insurance fraud that can lead to a criminal record. 

Level of cover

If you happen to own a car that is not very valuable or that you are willing to pay to repair for yourself, choosing a third party-based policy can lead to a reduction in premiums. This can, however, work out more expensive overall if you are involved in an accident that requires you to purchase a new car. Your level of cover should, therefore, be thought about properly. Opting for what appears to be cheapest may, eventually, work out considerably more expensive.

Increasing your car’s security

By adding extra security to your car, such as a steering wheel lock, an alarms, or immobiliser, providers will often reward you with a cheaper policy. This is because of the decreased likelihood of theft that comes with secure cars. This also applies to where you keep your car overnight. By keeping your car in a garage, insurers will also view your car as a less likely target of vandalism. Any extra security measures that are carried out, however, should be analysed in relation to their potential savings over time.

Building up your no claims discount

Your no claims discount is one of the biggest indicators of the risk that you present so being sure to build this up as much as possible can lead to considerably cheaper insurance over time. Saving through this method, however, does require some level of foresight. To make savings through your no claims discount, you will need to work out whether choosing not to claim over smaller things actually works out cheaper in the long run.

Take an advanced driving course

Courses, such as Pass Plus, can be a useful way to prove that you are a safe driver to your insurer and be rewarded with cheaper insurance. These courses can be quite expensive on the face of it but the savings made can largely outweigh this over time. These courses are especially useful for young drivers that have just passed their test and are especially struggling to find any form of realistically-priced cover.

Shop around for the right quote

Even if you think that you have found a cheap quote, it is always worth using comparison sites, such as ours, to ensure that you are finding the deal that is right for you. It is worth remembering that it is not always best in the long run to go for the cheapest quote available. Being sure to compare a wide range of insurers and what their policies offer is always the best route. Fill out the form on our car insurance comparison page to see what deals are available to you.

Photo: On the road by Francesco Supertramp licensed under Creative commons 2

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