10 easy ways to cut your car insurance costs

Your car insurance is something you have to pay for, but there are plenty of things you can do to reduce your bill. Here are 10 top tips to cut the cost of your car insurance premiums.

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.

Compare car insurance

Go fully comprehensive

Choosing a comprehensive policy can be cheaper than a lower level of protection like third party, fire and theft, plus 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.

What car insurance cover should you get?

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 less the car will cost to insure.

You can find out more about car insurance groups, including how cars are assigned to each group in this guide, or on the Parkers website.

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.

Can black box insurance save you money?

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.

GOV.UK website - Pass Plus

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.

How to save with multi car insurance

Increase your 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.

Drive carefully

The best way to keep your 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.

How does a no claims bonus save you money?

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 experienced 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.

This guide looks at adding a named driver in more detail, and here is more advice on finding the right cover as a young driver.

Can you put your child on your car insurance?

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. You may be charged less if you have low mileage limit (the number of miles you think you will drive during the policy). Set a realistic limit as you could be charged for going over it.

  • Increase your voluntary excess: This 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: This is a camera that records your journey. It can be used to establish fault after an accident, you may be offered a discount if you have one. They can cost between £20 and £180, so check the discount is worth it 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.

Whatever car you drive, make sure you find insurance that covers everything you need as cheaply as possible by comparing all of the policies out there.