13 Proven Ways to Get Cheaper Car Insurance in the UK (Save £££)
Whether you’re a new driver looking for your first affordable policy or a long-time motorist fed up with rising costs, the goal’s the same: get cheaper car insurance without losing cover.
In this guide, you’ll learn 13 practical, proven ways to reduce your car insurance premium in the UK, plus bonus tips and FAQs to help you save even more.
First rule: Never auto-renew your car insurance
If you take only one thing away from this article, make it this: never let your policy auto-renew.
- Auto-renewal is designed for the insurer’s benefit, not yours.
- Even after the FCA’s 2022 ban on loyalty penalties, many insurers still find ways to quietly increase prices.
- Always compare quotes before your renewal date.
💡 Pro tip: If you still want to stay with your current insurer, call them armed with a lower quote from a comparison site. They’ll often match it.
1. Try black box insurance (best for young drivers)
Black box, or telematics car insurance, uses a device or app to monitor your driving habits.
- Drive carefully (smooth braking, steady speeds) = lower renewal costs.
- Drive erratically = higher premiums or lost discounts.
📌 Works best for:
- New drivers under 25
- Low-mileage drivers
- Confident safe drivers
Also worth reading
If you’re considering selling a car, which car buying companies pay the most?
2. Choose a smaller engine to lower your premium
Insurance prices are more about performance and risk than car value.
- Lower engine sizes (1.0–1.2L) are cheaper to insure.
- Smaller cars are less attractive to thieves.
💡 Buying tip: Check your potential car’s insurance group rating before you buy — it can save you hundreds.
3. Pick the right level of cover
Types of car insurance in the UK:
- Third Party Only (TPO) – Minimum legal cover. Pays for damage to others, not your own car.
- Third Party, Fire & Theft (TPFT) – TPO plus cover for theft/fire.
- Fully Comprehensive – Covers you, passengers, and others.
4. Compare car insurance quotes from multiple sites
Most drivers check one comparison site and stop, which is a big mistake.
- Use at least three: Compare The Market, GoCompare, Confused.com.
- Keep all details identical for accurate comparisons.
- Check cashback offers but beware inflated quotes.
Check out my post on purchasing car insurance through cashback sites to find out more.
5. Lock in your policy early
Best time to buy car insurance: 3–4 weeks before your renewal date.
- Buying late can cost 20–30% more.
- Early booking signals “low risk” to insurers.
6. Add a safe named driver
Adding an experienced driver (with a clean record) can lower your premium, especially for young motorists.
- Avoid “fronting” — it’s illegal.
- Don’t add drivers with recent points or accidents.
7. Give the correct annual mileage
Overestimating mileage = higher premiums.
- Check MOT certificates for accurate history.
- Update your insurer mid-policy if your mileage drops, you might get a refund.
8. Increase your voluntary excess
Raising your voluntary excess can drop your premium, but only if you can afford the payout if you claim.
- Consider Excess Protection Insurance for peace of mind. It could also save you money. I saved £150 with my policy.
9. Test different job titles
Your job title can affect your premium.
- “Writer” vs “Journalist” or “IT Worker” vs “Marketing Executive” can change the price.
- Stick to truthful variations listed on the insurer’s form.
10. Pay annually, not monthly
Paying monthly adds interest (APR up to 30%).
- Pay in full if possible.
- If not, consider a 0% credit card and repay before interest starts.
11. Skip overpriced add-ons
Add-ons like breakdown cover or legal protection are often marked up.
- Shop around separately for these services, as it’s usually cheaper.
- Look for new customer offers with AA, RAC, or Green Flag.
- Taking out breakdown cover is usually cheaper if you find it yourself.
12. Park your car somewhere safe
Where your car is kept affects risk ratings.
- Garage or driveway = lower premiums.
- Be truthful, as false info can void your policy.
13. Improve your car’s security
Some insurers offer discounts for extra security features.
- Factory alarms, immobilisers, visible steering locks.
- Dashcams can also help in disputes.
Bonus car insurance tips
- Avoid unnecessary modifications. They often raise premiums.
- Take an advanced driving course like Pass Plus or IAM.
- Ask about multi-policy discounts if you have home insurance with the same company.
Quick checklist to lower your premium
- Avoid auto-renew
- Compare multiple sites
- Buy 3–4 weeks early
- Accurately report mileage
- Add a safe named driver
- Increase voluntary excess (with cover if needed)
- Test job title variations
- Pay annually
- Skip overpriced add-ons
- Improve parking & security
Bottom line: The cheapest car insurance goes to drivers who shop early, compare widely, and fine-tune the details. Play the game smarter than your insurer, and you’ll keep more cash in your pocket.
Further reading
Saving on your car insurance isn’t the only way to cut the cost of motoring. Take a look at how to save money on your fuel.
FAQs
Do I keep my no claims discount if there’s a gap in my policy?
This depends on the length of the gap and your insurance provider. Some companies will allow you to have a gap of up to 2 years, whilst others, 3. You will need to check with providers to see their current policies.
Can I cancel my car insurance after an accident?
You can, but you will not be entitled to any refund for the remaining months you have left to run.
Which car insurance is the cheapest?
Unfortunately, there is no correct answer to this. It really depends on your individual circumstances. What may be cheaper for a neighbour, may not be cheaper for you.
What car insurance do I need to deliver food?
Standard insurance will not cover you. Instead, you will need to have Hire & Reward (H&R) insurance in place.
Will car insurance cover engine failure?
This depends on the fault, but generally, car insurance will only cover a fault with an engine if it was due to an accident.
Is third party insurance cheaper in the UK?
Not always. Sometimes fully comprehensive is cheaper because third-party policyholders statistically have more claims.
What’s the cheapest car to insure in the UK?
Models in low insurance groups like the Skoda Citigo, Hyundai i10, and Ford Fiesta 1.0 are often cheapest.
Does car colour affect UK insurance?
No. It’s a persistent myth. Insurers don’t factor colour into premiums.
