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Ways to get cheaper car insurance

Ways to get cheaper car insurance

Category: Insurance
Author: Tim Leonard
Updated: 08/02/2018

Depending on the car insurer and the policy you choose, there is a range of ways to get cheaper car insurance.

In general:

  • Don't stick to the same insurance company.
  • Shop around to get as many quotes as possible.
  • Don't automatically choose the cheapest policy you find. A policy that costs just a few pounds more could give you lots of extra benefits.

Age and experience

  • Statistically, the younger and less experienced driver you are, the more likely you are to have an accident.
  • Older drivers with more driving experience, such as those aged over 50, can benefit from lower insurance policies that are especially designed for them.
  • Younger drivers, such as those aged 25 or under, may find that completing a 'Pass Plus' course will lower their premiums by up to 35%, and all drivers will benefit from passing the Advanced Driving Test.


  • According to statistics, men are more likely to have an accident than women.

Your address

  • Insurance companies can access data that shows them the area you live in. If you live in a high traffic area or your postcode is close to a high crime rate area (such as inner city areas), this will tend to attract a higher policy premium.


  • The more secure you make your vehicle, the better. Parking it in a garage or on a private driveway rather than on the street when not in use will lower your premiums, as will fitting it with alarms, tracking systems, immobilisers and/or steering locks.

Vehicle value

  • As a rule of thumb, the lower the value of your car, the lower the price of your insurance. It could be worth choosing a smaller car or smaller engine size in a lower insurance group to bring down the cost. All cars will be classified by an Insurance Group Rating, of which there are currently 50 groups. The lower the rating, the less risk to the insurer. Insurance companies use this rating to work out your premium.
  • Making modifications to the engine, or adding extras such as body kits, will increase your insurance bill, so it may be worth speaking to a modified car insurance broker.
  • For vehicles such as classic or sports cars, it could be worth talking to a specialist car insurance company for a quote.


  • Insurers believe that the more miles you drive, the more likely you are to have an accident. If you reduce the amount of miles you drive, you are likely to get a lower insurance quote.

Voluntary excess

  • The more you are willing to pay as a voluntary excess, the less your premium will be. Play around with what you can afford to see if you can get a lower quote. Remember that the policy you choose could already have a compulsory excess attached, so check this carefully.


  • The more claims you've made in the past five years, the higher your premium will be, unless you have a protected no-claims discount.
  • Don't just set up an 'any driver' policy - you could save yourself money by only having named drivers insured for the use of your car.

Penalty points

  • Speeding fines and points on your licence will definitely increase your premium.
  • A speeding conviction can double or even treble your insurance quote.


  • Setting up a direct debit to pay for your insurance could work out more expensive than paying for the insurance upfront. Some companies will charge added interest and even an arrangement or administration fee.
  • When paying by debit or credit card make sure that you tell them you don't want it set as a recurring card transaction.
  • Before entering into the contract verbally (over the phone) or online, check the policy document's terms and conditions for any additional fees that could increase your premium over the year. Fees can include the likes of renewal fees, charges for making changes to your policy, unpaid direct debit fees, cancellation fees and charges for duplicate documentation.
  • If you have home insurance or life insurance with a company that offers car insurance too, you could save by bundling them all together.

What next?

Compare car insurance quotes

Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.