How to Lower your Car Insurance

Finding a cheap car insurance quote can often be a challenging hunt. With prices constantly fluctuating, it’s unlikely you’ll get the same price the following year with your auto-renewal quote. That is why many motorists are continually searching for ways to help reduce the cost of their car insurance.

If you’re looking to save some money and become a savvier shopper, we’ve found the top 10 ways that can help lower your car insurance.

10 Ways to Lower Your Car Insurance

1. Try to pay the cost annually

While it may seem like a large expense to pay your insurance off in one lump sum, choosing to do this rather than splitting the cost monthly will save you money. With most policies, there will be a larger initial payment followed by 11 monthly payments which total a higher cost than the annual price if it’s paid in one go.

Saving a small amount of cash each month for next year’s car insurance renewal can help break the habit of paying your insurance monthly. It can even be repeated year after year to help you save!

2. Pay a higher voluntary excess

All policies will have their own involuntary excess you will have to pay in certain circumstances that cannot be negotiated. However there will be the option to choose a voluntary excess that can be higher or lower depending on your financial situation.

Increasing this cost will likely reduce your overall insurance premium however, if you make a claim the voluntary excess will have to be paid in full and may require payment before you can get your car back from the mechanic.

3. Reconsider add-ons

Car insurance add-ons can vary from windscreen, breakdown and courtesy car cover to personal accident cover and legal assistance and will all vary in price.

With so many add-ons to select it is worth doing a little research prior to choosing a policy to ensure the add-on is suitable to you. For example, some banks offer breakdown cover as part of their account benefits so could be worth checking with your current bank to see if this is a service they offer.

4. Increase your no-claims bonus

A no-claims bonus is a discount applied to the premium as a reward for not claiming against your policy. It is granted to the main driver for every consecutive year you have had the policy and not made a claim. Building up this policy over a number of years is therefore likely to reduce the overall cost of your insurance policy.

It is worth making note of this number before finding a new policy as insurers may require proof when you take out a new policy.

5. Consider your type of cover

There are three types of insurance you can choose from and depending on the value of your car you may consider opting for the lower band although this may not always be the case.

While third-party is the minimum amount of cover drivers are required by law to have and can sometimes be the cheapest, this policy can cost more in the long run when you take into account claims that it doesn’t cover. That is why it is worth getting quotes for third-party fire and theft as well comprehensive cover, as overall these may be better cover options.

6. Consider additional drivers

For younger drivers adding one or both of their parents to their insurance policy may help reduce the cost, but other motorists need to be more considerate. Keeping your additional driver to one will help keep premiums at bay, and it may be worth waiting a few years to add under 25s to your policy.

7. Avoid modifications

All changes made to your vehicle need to be noted upon submitting an insurance quote to ensure insurers can accurately measure the risk of the modification. Since nearly all car modifications need to be recorded, we recommend avoiding changes where possible and looking out for these when buying a new car – privately or from a dealership.

Our handy do’s and don’ts of car modifications that affect car insurance may help if you’re looking for more clarification.

8. Be aware of administration charges

Administration charges are an often overlooked cost attached to insurance policies that many drivers aren’t made aware of until a change arises during the course of their policy. These can be changes of any kind, ranging from changing your car, updating your address or listing a new name.

9. Think about your vehicle

If you are considering purchasing a new car, run a pre-emptive search for an insurance quote to get an idea on likely costs before signing on the dotted line. Although this may not deter you from your dream model, it may make you consider the engine size, fuel type or other specification that could push the car into the next insurance bracket.

10. Spend time finding the right quote

Car comparison sites allow you to quickly search through multiple insurers within one space. Although some insurers only accept direct quotes, there are enough providers available to gauge a rough idea of prices before trying a direct option.


Car insurance prices are volatile which can make shopping for insurance an exhausting task. While it has its frustrations, dedicating some time to finding the best quote for you using the above tips will really help long term.

Next time you consider sticking with your auto-renewal quote, think back to our top tips and spend 5 minutes searching – you may be surprised how much money you could save!

Do you have any money savings tips for car insurance shopping? Send them to us on Facebook or Twitter.