How to Save Money on Car Insurance

There is no single change that guarantees a cheaper premium. Insurers price risk differently, so the most reliable approach is to give accurate information and compare equivalent cover from several providers.

Compare before renewal

Start looking before the current policy expires and compare the renewal with other suitable quotations. Keep the drivers, mileage, use and excess consistent so the prices are genuinely comparable.

Compare levels of cover

Third-party insurance is not always cheaper than comprehensive cover. Obtain quotations for every suitable level and check the exclusions, excesses and benefits rather than choosing from the label alone.

Choose the car carefully

The particular model, insurance group, performance, repair cost, security and theft record can all affect the price. Check indicative quotations before committing to a different car.

Use a realistic annual mileage

Estimate mileage honestly from commuting, regular journeys and occasional trips. A lower accurate estimate may help, but understating the figure can create problems when the policy is checked or a claim is made.

Choose an affordable excess

A higher voluntary excess may reduce a quotation, but the saving is not guaranteed. Remember that it is normally added to the compulsory excess and choose only an amount you could afford after a claim.

Consider telematics

A telematics policy may suit a new, young or low-mileage driver, but check how journeys are scored, whether there are mileage or time restrictions and what happens after poor driving scores.

Check named drivers and the main driver

Add only people who genuinely need to drive the car. A named driver can raise or lower the price. The person who uses the car most must be identified accurately; naming somebody else as the main driver to obtain a cheaper price is fronting.

Review optional extras

Breakdown, legal expenses, key cover and enhanced courtesy-car cover can add to the price. Remove an extra only after checking that it is unnecessary and is not providing cover you value.

Compare annual and monthly payment

Monthly instalments commonly involve credit and interest. Compare the total amount payable, not just the monthly figure, and do not assume that paying monthly is the same as buying one month of insurance at a time.

Declare security and modifications accurately

An insurer may take approved security into account, but a discount is not guaranteed. Declare every modification requested by the insurer, including changes made by a previous owner where known.

Build a claims record over time

A claim-free policy year may add to a no-claims discount under the insurer’s rules. Before paying for minor damage yourself, check any duty to report the incident and remember that protected discount does not freeze the underlying premium.

Check before paying for a course or membership

Advanced-driving courses and owners’ clubs may help in some specialist markets, but they do not guarantee a discount. Ask insurers first if saving money is the main reason for the expense.