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11 ways to get cheaper car insurance

Cheaper Car Insurance

Get cheaper car insurance quotes when you follow these handy tips.

Cheaper car insurance is something we could all do with right now. Prices have been going up across the board throughout the cost of living crisis and car insurance costs have been rising too.

More expensive materials, more expensive mechanics and more expensive cars means more expensive claims. And that — among other things — means more expensive car insurance.

While you won’t be able to buck the trend completely, there are several things you can do to get cheaper car insurance. Let’s look at those now.

Cheaper Car Insurance Tip #1: Pick up the phone

It might not be an earth-shattering revelation but it is a very successful one. If your renewal quote is more than you want to pay or significantly more than you paid last year, your first port of call should be to get on the phone to your current insurer.

More often than not they will miraculously find some fat that can be trimmed from your renewal quote and suddenly be able to offer you cheaper car insurance. There’s no obligation for you to give the go-ahead for your renewal there and then. You can always call back to confirm, but at least you’ll know if you’ve got the best quote from your current insurance company.

Never let your existing policy automatically renew. This is almost guaranteed to cost you money because renewal quotes tend to be inflated.

Cheaper Car Insurance Tip #2: Check comparison sites

The next step is to shop around and the quickest way of doing that is to look at the comparison sites. Sites such as MoneySuperMarket, Compare The Market and Go Compare all offer a speedy overview of car insurance quotes from multiple providers.

Remember to set the filters to make sure you’re comparing like-for-like and getting the level of cover you want from the quotes you’re seeing. It’s also worth considering that a few well-known insurers don’t feature on car insurance comparison sites, so you might want to check on them separately.

Cheaper Car Insurance Tip #3: Multi-car deals

If you’ve got more than one car in the household, you might be able to secure cheaper car insurances through a multi-car policy. In exchange for you insuring two or more cars with them, some insurers will offer a discount on your premium.

Even if the insurance renewal isn’t due on one of your vehicles, you can put plans in place to for the multi-car policy and start saving on your car insurance.

Cheaper Car Insurance Tip #4: Cashback sites

If you’re buying your car insurance online, head to a cashback site before buying your insurance. Take a look at sites like Topcashback to see whether the insurer you’ve got in mind offers a cashback deal.

If so, you might be able to effectively secure cheaper car insurance by earning a cashback payment for a percentage of your premium. It’s unlikely you’ll make an enormous saving but every little helps.

Cheaper Car Insurance Tip #5: Dash-cam discounts

One relatively new way of securing cheaper car insurance is by agreeing to use a dash-cam. Some insurers will offer a cheaper premium if you have a dash-cam fitted.

Since a camera may be useful in either disproving a claim of your own or proving another driver’s liability, some car insurance companies have decided that it’s worth their while to offer you a discount if you’re using one.

Cheaper Car Insurance Tip #6: Get quotes 23 days before your renewal date

The best time to secure cheaper car insurance is 23 days before your renewal date. The window from 20 – 26 days is the optimal time to buy a new car insurance policy. The closer to get to your renewal date, the higher the quotes will rise.

Analysis by MoneySavingExpert found that the average car insurance policy cost £1,198 per year when bought on renewal day. Policies averaged £694 per year when bought 23 days before the renewal date.

It has been suggested that renewing on or close to your renewal date suggests that you’re disorganised and that this is identified as a risk factor among insurers.

Cheaper Car Insurance Tip #7: Add another driver to your policy

It might seem counter-intuitive but adding an extra driver to your policy can help you to secure cheaper car insurance. This is the case as long as the other driver is someone who insurers are likely to consider to be responsible.

A good example is a young driver adding their mum or dad to their policy as a named driver — this can help to bring quotes down. Just remember not to add them as the main driver of the vehicle if that isn’t the case because that’s fraud.

Ideally, you’ll want someone who is older (but not elderly), has a lot of driving experience and a positive driving history (no disqualifications, car insurance claims or other risk factors).

Cheaper Car Insurance Tip #8: Adjust your job title

Making a minor adjustment to your job title can help to secure cheaper car insurance. Many of us can’t find our exact job when we’re getting car insurance quotes and have to opt for what we consider to be the nearest thing.

What we pick can impact our car insurance quotes. For example, a PA typically gets cheaper car insurance quotes than a secretary, while an illustrator often gets cheaper quotes than an artist.

If you can make a subtle change — without telling a lie, which would be fraud — you might be able to save money.

Cheaper Car Insurance Tip #9: Pay annually

If you’re looking for cheaper car insurance then being advised to pay out hundreds or even thousands of pounds in a lump sum might not be the advise you’re hoping for.

Nonetheless, paying annually is the cheapest way of paying for your car insurance. Paying your premium monthly will usually result in you paying more for your policy.

Cheaper Car Insurance Tip #10: Register to vote

Your interest in the democratic process might not immediately seem relevant to your car insurance — but some insurers think that it is.

Being on the electoral roll makes you easier to find and identify, which can save time and money for insurance companies. With that in mind, you might be able to get cheaper car insurance by making sure you’re on the electoral role.

Cheaper Car Insurance Tip #11: Go back to your current insurer

Once you’ve tried as many of our cheaper car insurance tips as possible, it’s always worth going back to your current insurer with the best car insurance quote you’ve been able to find to see if they’re willing to beat it. Always worth a try.

Remember to shop around

That concludes are tips on how to get cheaper car insurance. The overall message is to shop around for your car insurance. Don’t expect your existing insurer and their renewal quote to be counting the pennies and pounds for you — look at the other options before renewing.

Cheaper car insurance quotes

Always tell the truth

We’ve mentioned a couple of ways in which you might be able to bend the truth slightly in order to get cheaper car insurance. But never lie when getting quotes for car insurance. That could result in your insurance being invalid or, even worse, lead to you being prosecuted.

Car insurance FAQs

Do I need car insurance?

Yes, car insurance is a legal requirement in the UK. Driving a car without insurance is a criminal offence and you could be prosecuted if you don’t have insurance.

Is third party car insurance cheaper?

Yes, in terms of the cost of your premium, third party car insurance is the cheapest car insurance you can get. But this is because it also offers the lowest level of cover. Since you won’t be covered any damage caused to your own car, it could ultimately prove to be more expensive.

Get more finance tips

Want more money-saving and financial tips to help your household spend go further? Visit our Finance page for more information and advice.

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