Always shop around
Never settle for the first quote you find or your current insurer's renewal quote. You can save hundreds by comparing car insurance quotes to find the best deal.
Make sure you look at exactly what each policy offers when you compare; the cheapest quote may not have all the benefits you need.
Go fully comprehensive
Choosing a comprehensive policy can be cheaper than a lower level of protection like third party, fire and theft, and it offers better cover.
This is because some insurers associate third party policies with high risk drivers looking for the cheapest possible cover. As a result many charge more for less cover.
Here is how the different levels of car insurance cover compare, including an example of how much each level could cost.
Pay up front
You can save by paying for your car insurance in one go compared to splitting it into monthly payments.
When you pay monthly, insurance companies will usually charge you interest, sometimes as much as 30% APR. Find out how much you could save by paying annually in this guide.
Get the right car
The car you drive has a huge influence on the cost of your insurance. The more expensive and powerful the car, the more it will cost to insure.
This is because the cost of repairs will be higher if you have an accident, and insurers consider you more likely to have an accident if you drive a fast car.
Every car is given a car insurance group based on how much it costs to insure. Groups range from 1 to 50, and the lower the group, the lower the car will cost to insure. Look at cars in group 1 for the cheapest possible cover.
Get black box insurance
This is a type of car insurance policy that installs a telematics box in your vehicle to track your driving.
It can mean you pay less if you drive safely and within the rules of the policy. This a good option for new or young drivers because what you pay is based on how you drive, not on how your insurer thinks people your age drive.
For more information on black box policies, including how they work and how much you could save, read this guide.
Take a Pass Plus course
Some insurance companies will offer you a discount if you have extra driving qualifications like Pass Plus.
These driving courses show insurers that you are a safer driver, and less likely to have an accident. Check that a discount is offered before you get a quote as not all insurers offer it.
Consider a multi car policy
Insurers often offer a discount if you and other drivers in your house share a multi car policy.
They cover all the drivers on one policy and can be cheaper than separate standalone policies, but not always. Our multi car insurance guide explains how they can save you money, and what to watch out for.
Increase you car's security
Making your car more secure and less at risk to theft or vandalism can mean insurers will offer you cheaper premiums.
Fitting a Thatcham approved alarm, tracker or immobiliser
Parking your car in a garage if possible, or on your driveway if you have one
Getting a steering wheel lock
Even if the cost of these security measures is not recouped by the potential savings they can be worth it for the added peace of mind.
The best way to keep you premiums as low as possible long term is to drive sensibly and avoid making a claim on your insurance.
You can earn a no claims bonus for each year you drive without making a claim; a bonus of five or more years could give you a discount of as much as 75%. You can find out how a no claims bonus can save you money here.
Add a named driver
If you put another person on your policy as a named driver it can make your cover cheaper.
This works best if you can add a more experience driver to your policy, for example if you are a young driver adding a parent with a clean licence and several years of no claims could bring your premiums down.
5 more ways to save
Here are some more tips that could reduce the cost of your cover:
Cut the extras: Policy add ons like breakdown or key cover come at a cost, so leave them off to get the cheapest possible deal. Here is a list of the extras worth considering.
Lower your mileage limit: The less you drive, the less likely you are to have an accident and make a claim. If you set a low mileage limit (the number of miles you think you will drive during the policy), insurers will charge you less. Make sure you set a realistic limit as you could be charged for going over it.
Increase your voluntary excess: The insurance excess is the amount you have to pay if you make a claim. If you choose to pay more, insurers can lower your premium because they will have to pay less towards any repairs; however, the total cost could be more if you do claim. Find out more about car insurance excess here.
Get a dash cam: A dash cam is a camera fitted into your car that records your journey. It can be used to establish fault after an accident, and some insurers will offer a discount if you have one. They can cost between £20 and £180, so check the discount is worth the outlay before you buy one.
Do not modify: Modifying your car to increase engine performance or adding body kits can increase the value of your vehicle and make it more attractive to thieves. As a result insurers will increase the cost of your insurance to cover the increased risk.