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Six hacks to get cheaper car insurance this renewal season

Written by Salman Haqqi, Senior Personal Finance Writer

7 September 2020

With drivers across the country tentatively eyeing up a return to commuting and the school run, new data from money.co.uk has uncovered six simple tricks for Brits to slash their insurance premiums, during the height of renewal season.

Combined with regularly switching your insurance provider, these industry hacks could potentially save drivers hundreds of pounds a year.

1. Save £103 – By using the right job title

Your job title is one of the main pieces of information that insurers use to calculate your premium and can have a big impact on the price you pay.

This means that if you’re a professional footballer you’ll unfortunately be stuck with higher premiums than a teacher. However, as you’ll normally pick your occupation from a list, for some jobs, there may be more than one title that describes what you do.

For instance, in one example we found the average quote for a ‘bricklayer’ was as much as £103 higher than that of a ‘builder’, whereas an ’office administrator’ could pay £41 less than an ‘office manager’.

Other occupations that have a wide variety of similar options include building and construction, teaching, catering and journalism.

It’s not just those in full-time work that this applies to, for instance, if you’re a full-time parent, retired, a full-time student or a currently undertaking freelance work but not in full-time employment, be sure to state this to your insurer, as the difference between these titles and ‘unemployed’ can be as much as £270.

However, it’s important to be honest and accurate with your insurer, as lying on your policy could lead to your claim being rejected or your insurance cancelled.

2. Save £67* – By recalculating your mileage

Typically, the more miles you cover in a year, the more expensive your insurance policy will be. However, it’s common for people to overestimate how many miles they actually do.

This could be especially true if you’re one of the millions of Brits who has switched to remote working, or a combination of home and office-based work.

Taking the time to roughly estimate your predicted mileage (which can also be found on your latest MOT certificate) could pay dividends, with money.co.uk research finding a difference of just 2,000, could save drivers as much as £67 a year.

3. Save £84* – buying in advance

Nobody looks forward to their insurance renewal, but getting a jump start and shopping around early could save you nearly £100.Generally, purchasing your insurance ahead of time, rather than the day before its due to start, will see you receive much more favourable premiums. In fact, arranging your insurance 14 days before its due, could save you as much as 19% (£84), compared to leaving it to the last minute.

*Based on a 41 year old driver, driving a BMW 3 Series and living in Leeds. Price difference of the average of the top 10 cheapest quotes with the policy starting 14 days in advance and the day of purchase. 

4. Save £144* – By paying annually

For most people, paying for their insurance monthly is the most convenient and affordable option, especially for those with high premiums such as young drivers.

However, most insurers will charge you more for opting for monthly payments, usually through the form of interest on your premium. This means, the more expensive your premium, the more expensive it is to spread the cost.

In example quotes, money.co.uk found that paying for your premium annually could save you up to £144 a year vs monthly payments. 

*Based on a 33-year-old, living in London, driving a Vauxhall Corsa.

5. Save £438* – With a black box

Car insurance premiums for younger or new drivers can be eye wateringly expensive. This is because, insurance companies say that statistically, they are more likely to have an accident or make a claim.

With a telematics or  ‘black box’ policy, your premium is based on your actual driving, which means if you can demonstrate that you’re a good driver, you could save hundreds of pounds compared to a traditional policy.

Telematics policies can be a good option for both new drivers and those with a low annual mileage, and despite their ‘black box’ reputation some can even work through just an unobtrusive smartphone app.

That said, telematics policies tend to be geared towards young, low mileage drivers and can come with exclusions and restrictions, which means it’s important to check the policy is right for you before opting for one.

*Based on a 19 year old female, living in Bristol, driving a Renault Clio, where the cheapest telematics policy based on behaviour and mileage is £1,750 and the cheapest standard policy is £2,188.  

6. Save £476- With an experienced driver 

While you may think adding more drivers to a policy would make it more expensive, having an experienced driver with no claims or convictions as a named driver on your policy, could see your premium tumble, especially for new or young drivers.

Money.co.uk discovered drivers could save up to £476* by adding an experienced driver, such as a parent, to their policy as a named driver. 

The biggest savings with this trick are usually reserved for younger drivers, however, even those with more experience behind the wheel could save money by adding a parent or partner to their policy.

While adding a named driver to a policy, who occasionally drives the vehicle, is perfectly fine, it’s important to be accurate and honest with your insurer with who the main driver of the vehicle is, otherwise you could risk ‘fronting’ which is illegal and could see your insurance invalidated.

*Based on an 18 year old, living in Birmingham, driving a Fiat 500, before and after adding a parent with a clean license on as a named driver to their policy.

Salmon Haqqi, personal finance expert at Money.co.uk, said: “September is historically a peak time for car insurance renewals, coinciding with the launch of the new licence plates. 

“Though your mileage may vary with how much you can save with these industry hacks, they really show how getting engaged with your insurance can pay dividends.

“With people across the country particularly budget conscious at the moment, these tips could help shave hundreds of pounds off car insurance premiums and put more money back in your pocket.”

For more information on how to save money on your car insurance premiums this renewal season, visit: https://www.money.co.uk/car-insurance/10-easy-ways-to-cut-your-car-insurance-costs.htm

press@money.co.uk

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About money.co.uk

money.co.uk is one of the UK's leading comparison websites for financial services. We help consumers compare mortgages, loans, credit cards, bank accounts and insurance from more than 200 providers.

money.co.uk is owned by RVU, which also owns Uswitch.com and Bankrate.


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Salman Haqqi

Salman Haqqi, Senior Personal Finance Writer

Salman Haqqi spent 10 years as a journalist reporting in several countries around the world. He left the world of journalism to pursue his passion for personal finance.

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Joel Kempson

Joel Kempson, Personal Finance Writer

Joel Kempson devotes his time to helping people navigate the world of personal finance and make informed decisions about their money. He spent his early career writing about TV, movies, comic books and rock music.

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