How to get cheap car insurance

With car insurance premiums on the rise, many drivers will face higher costs this year. We find ways you can reduce your risk and get cheaper deals.

Due to the increase in the cost of repairs and the number of claims, the price of car insurance increases. You can read more about why the price of insurance is rising in a separate article, but this trend will affect many drivers who will have to renew their policy this year.

However, before you start comparing providers, there are ways to make your deals cheaper. In this article we discuss the following:

How much does car insurance cost?

According to the Association of British Insurers (ABI), the trade body, the average cost of comprehensive car insurance is £612, which is around £51 a month.

In comparison, between July and September 2023, the average car insurance premium was £50 cheaper.

As mentioned, the increase in the number of claims and the cost of repairs are the two biggest factors of growth.

The ABI said that over the past decade, claims costs have risen at almost three times the rate of premium increases, when adjusted for inflation. In addition, repair costs have increased by 31% over the past year.

This means car insurers absorb more of the cost, according to the ABI.

“These figures show how competitive the motoring market is, with insurers absorbing significant cost increases but keeping prices relatively stable,” said Mervyn Skeet, ABI’s director of general insurance policy.

How can I get cheaper car insurance quotes?

From paying annually to adding a driver to your policy, there are ways to lower your car insurance rates.

Payment annually

If you can, paying for car insurance upfront for the year is generally cheaper than choosing monthly installments.

Most insurers consider your insurance to be divided into monthly installments as a form of borrowing and therefore charge interest.

Increase your surplus

If you ever make a claim, the excess is the amount you will have to pay before the insurer pays you. So voluntarily increasing your excess will reduce the amount your insurer will have to pay in the event of a claim.

This reduced risk should be reflected in lower premiums.

However, you should not opt ​​for excessive excess just to get the cheapest possible premium. In case you have to make a claim, you will have to pay this excess and this could leave you under a lot of financial pressure.

Greg Wilson, chief executive of Quotezone, an insurance comparison engine, said young drivers could consider adding an experienced driver to their policy to reduce the cost of their premium.

However, this comes with an important caveat.

“The primary driver has to be the person who spends the most time driving the car, otherwise they could be caught for ‘fronting,’ a type of insurance fraud that carries large penalties,” Wilson said.

Get telematics

Black box insurance – also known as telematics – involves installing devices in your car or apps on your phone to monitor your driving.

This will include your speed and mileage as well as acceleration, turning and braking. It will also record how many trips you make, the duration, the roads you drive on and at what time.

After this renewal, this information is used to determine whether you are a responsible driver and your insurer will be able to provide you with a personalized offer. The better your performance, the less you pay.

This could be the best insurance for young drivers, as long as you drive carefully and responsibly.

Compare your options

Instead of allowing your insurance to automatically renew, compare all your options first.

As ABI mentioned, the car insurance market is a competitive area and there could be another provider willing to offer you the same level of cover for a better price.

One of the first tangible steps you can take toward comparing your options is to use our online tool. You only have to fill in your information once before generating offers from hundreds of service providers.

how does it work

With Quotezone you only need to fill in your details once and they will send your details to over 100 insurance providers in the UK. Moments later, their quotes come back to you in real time, on your screen. Don’t waste time filling out multiple forms and compare all the best offers in one browser.

What is the right car insurance for me? Different types of auto insurance

There are different types of coverage if you want to insure your vehicle. This includes:

• Third Party – This is the minimum level of cover you need to drive legally in the UK. It only pays out to third parties if you were involved in an accident that was your fault
• Third party, fire and theft – under this policy, your insurer will pay third party damages if your vehicle is damaged by fire or stolen. They still won’t pay for damage to your vehicle in an accident
• Comprehensive coverage – This is the most detailed level of coverage available. It includes the same level of cover as third party, fire and theft, but will also pay for damage to your vehicle.

Although you may think that third-party coverage offers the cheapest premiums, this is not always the case. Some insurers tend to find that this type of coverage attracts riskier drivers, so they increase their premiums in response. So it might be worth getting comprehensive coverage.

What factors affect the price of car insurance?

“When it comes to an individual looking for insurance, things like claims, convictions, the insured’s occupation or place of residence can have an impact,” said Mike Powell, motor insurance specialist at Defaqto, a data firm.

Much of the information that determines your risk to insurers cannot be easily changed. For example, if you’ve had a driving conviction against your name, it will take time for it to reduce the impact on your policy.

But we’ve explained these factors in more detail below to help you understand how insurers assess your risk.

• Place – If you live in a more populated, bustling city, your insurance premiums are likely to be higher than registering a vehicle address in a more rural part of the country
• Mileage – Before any insurance policy, insurers ask your expected mileage, with higher mileage putting you at greater risk of an accident and therefore a more expensive premium
• age – Younger drivers tend to attract the most expensive policies because of their inexperience, our guide explains
• Driving history – Driving convictions, points on your driver’s license or other records of irresponsible driving have a negative impact on your premiums
• Occupation – Different job titles also affect your insurance premiums. For example, entering ‘attorney’ instead of just ‘attorney’ could make premiums more than 10% cheaper. So play around with this function, just remember to get it right. If not, it’s a scam and it’s illegal.
• Car – The make and model of your car plays a role in your quotes. More expensive cars obviously attract higher premiums, while others that require sought-after parts for repairs will also charge more.

For Times subscribers: Priced off the road: How learning to drive has become so expensive

Do I need car insurance?

Yes, this cover is a legal requirement in the UK so you cannot drive without car insurance. The government states that if you plan to drive in the UK you need a minimum of third party insurance.

If you’re only driving in the UK for a short time, consider short-term insurance.

Frequently asked questions about car insurance

What information do I need to compare car insurance?

Make sure you have the driver’s license plate and the vehicle’s number plate when comparing insurance. This will help you get the most accurate quotes possible.

What level of cover do I need?

Third party cover is an absolute minimum, but since comprehensive policies aren’t much more expensive, you might want to look into this instead.

Are there specialized car insurance policies tailored to me?

If you have a classic, vintage or even military vehicle, you may need to find a specialist provider to insure it. Our comparison tool will help identify these insurers.

I only need to drive for one day, should I still insure my car?

Yes, so if you’re only driving in the UK for a short time, you might want to consider short-term insurance. In this guide, we explain how it works.

Why is car insurance more expensive for younger drivers?

Age and driving experience play a significant role in determining your premium. In this article we explain why.