How to Save Money on Car Insurance in the UK

1. Shop Around and Compare Quotes

Car insurance prices vary between providers, so always compare quotes before renewing or taking out a new policy.

Where to Compare Car Insurance Prices:

Compare the Market – Offers comparisons from multiple insurers and includes free rewards.
MoneySuperMarket – Provides a wide range of insurance options.
Confused.com – Offers exclusive discounts and promotions.
GoCompare – Includes additional perks like free excess cover.
Direct Insurers – Some insurers like Aviva and Direct Line are not on comparison sites, so check them separately.

2. Adjust Your Voluntary Excess

Increasing your voluntary excess (the amount you agree to pay in the event of a claim) can reduce your premium. However, make sure it’s an amount you can afford if you need to make a claim.

3. Pay Annually Instead of Monthly

Most insurers charge interest on monthly payments. If you can afford to pay annually, you could save up to 20% on your total premium.

4. Consider a Telematics (Black Box) Policy

A black box policy tracks your driving habits and rewards safe driving with lower premiums. This is particularly useful for young or inexperienced drivers who typically face higher insurance costs.

Best Black Box Insurance Providers:

Admiral LittleBox – Offers significant discounts for careful drivers.
Bell Insurance – No curfews and flexible monitoring.
Tesco Bank Box – Rewards safe drivers with Clubcard points.

5. Reduce Your Mileage

The fewer miles you drive each year, the lower your insurance premium. Be realistic about your estimated annual mileage and avoid overestimating.

6. Improve Your Car’s Security

Adding extra security features can lower your insurance costs.

Ways to Improve Security:

Install an approved alarm or immobiliser.
Park in a garage or secure driveway instead of on the street.
Use a steering wheel lock for added protection.

7. Choose the Right Car

Insurance groups determine how much you pay for cover. Cars in lower insurance groups (1-10) are cheaper to insure.

Cheapest Cars to Insure:

Ford Fiesta
Volkswagen Polo
Hyundai i10
Vauxhall Corsa
Toyota Yaris

8. Add a Named Driver

Adding an experienced named driver, such as a parent or spouse, can lower your premium. However, avoid fronting (where a more experienced driver is incorrectly listed as the main driver), as this is illegal.

9. Consider a Multi-Car Policy

If you have multiple cars in your household, a multi-car policy can provide discounts for insuring them all under one provider.

10. Take Advantage of No Claims Discounts

The longer you go without making a claim, the bigger your no claims discount (NCD). Some insurers offer up to 70% off for five years of no claims.

How to Protect Your No Claims Discount:

Consider a no claims protection add-on.
Avoid making small claims and cover minor damages yourself.

11. Look for Specialist Discounts

Some insurers offer discounts for:

Young drivers – Telematics policies and student discounts.
Over 50s – Providers like Saga offer cheaper cover.
Profession-based discounts – Teachers, nurses, and emergency services may qualify for lower rates.

12. Avoid Automatic Renewals

Insurance companies often increase renewal prices, assuming you won’t switch. Set a reminder to compare and switch before your renewal date.

13. Use Cashback and Voucher Code Websites

Where to Find Extra Savings:

TopCashback & Quidco – Earn cashback on insurance purchases.
MoneySavingExpert Deals – Regularly updated car insurance offers.
VoucherCodes & HotUKDeals – Check for discount codes.

Conclusion

Saving money on car insurance in the UK is possible by shopping around, adjusting your policy, and taking advantage of discounts. Whether you’re a new driver or an experienced motorist, following these tips can help you secure the best deal and lower your annual costs.