Car insurance is a must-have in the UK, but that doesn’t mean you have to overpay. Whether you’re a new driver or have years of experience, finding affordable car insurance can feel like a challenge. The good news? With a few smart moves, you can cut your premiums without compromising on coverage.
Why Is Car Insurance Expensive?
Insurance companies calculate your premium based on risk. The higher the risk, the more you pay. Factors that affect your car insurance cost include:
🚗 Your age and driving experience (young drivers pay more)
🏡 Where you live (high-crime areas mean higher premiums)
🚦 Your driving history (accidents and claims increase costs)
🚘 Your car type (luxury and high-performance cars cost more to insure)
📊 Your annual mileage (the more you drive, the higher the risk)
Now, let’s dive into how you can get cheap car insurance.
10 Tips for Cheaper Car Insurance
1. Shop Around and Compare Quotes
Never settle for the first quote! Use price comparison websites like:
🔹 Compare the Market
🔹 GoCompare
🔹 MoneySuperMarket
🔹 Confused.com
Each insurer calculates risk differently, so getting multiple quotes can help you find the best deal.
2. Choose the Right Cover
There are three types of car insurance in the UK:
✅ Third-Party Only – Covers damage to other people’s cars but not yours (usually the cheapest).
✅ Third-Party, Fire & Theft – Adds protection if your car is stolen or damaged by fire.
✅ Comprehensive – Covers both you and others, and sometimes it’s cheaper than third-party policies!
3. Increase Your Voluntary Excess
The higher the excess (the amount you pay before insurance kicks in), the lower your premium. Just make sure it’s an amount you can afford if you need to claim.
4. Drive a Low-Risk Car
Insurance companies group cars into categories from 1 to 50. Cars in lower groups (1–10) are cheaper to insure. Generally, smaller engines (1.0–1.4L) and budget-friendly models have lower premiums.
5. Limit Your Mileage
The more you drive, the higher the risk of an accident. If you drive fewer miles per year, insurers may offer you a lower rate.
6. Build a No-Claims Bonus (NCB)
For every year you don’t claim, you earn a no-claims discount. After five years, you could save up to 60% on your premium!
7. Add a Named Driver (But Be Honest!)
Adding an experienced driver (like a parent) to your policy can reduce costs. But never lie about who the main driver is—this is called “fronting” and is illegal.
8. Improve Your Car’s Security
Parking in a garage or driveway, installing an alarm or immobilizer, and using a steering wheel lock can lower your insurance costs.
9. Consider a Telematics (Black Box) Policy
A black box tracks your driving habits. If you drive safely, you can get cheaper premiums, especially for young drivers.
10. Pay Annually Instead of Monthly
Paying your insurance in one go avoids interest charges on monthly payments, saving you money in the long changes! 🚗💨