Need Cheaper Car Insurance? Here Are Some Essential Hacks

These tips are from Liz Hunter, Commercial Director at Money Expert

Despite the average cost of car insurance falling, according to the most recent data from the Association of British Insurers, the average cost of insurance in the third quarter of 2024 was still 9% higher than the same period in 2023. This suggests that while they may be falling, prices are still a lot higher than they were.

Higher costs are mainly down to inflation – many insurers are finding replacement vehicles and repairs more expensive – coupled with an increase in claims. These extra costs are then passed onto consumers in the form of price increases.

Insurance fraud is another major contributor to the increase in car insurance premiums. To combat fraudulent claims, insurance providers have invested in anti-fraud measures and passed these additional costs on to policyholders too.

With other household costs increasing, such as energy bills, grocery prices and the cost of fuel, many people will be keen to find ways to reduce their outgoings. So here are my top 14 insurance hacks to reduce premiums and help you secure a better deal:

1. Use price comparison sites

Whether you’re looking for a new insurance policy or due to renew, you should always use price comparison websites to compare rates from multiple providers to find the best deal. Not only will it save you time, but it can help save up to £523* too. Money Expert, for example, can help you compare deals from over 110 of the UK’s top providers. If you find one cheaper than your current provider is offering, you could always call them up and see whether they can match it or offer you something better.

From 1st January 2022, car insurers were banned from charging existing policy holders more than new customers for their renewal price. This means that existing customers must be offered the same price as new customers upon insurance renewal.

2. Make sure you’re on the electoral roll

Being on the electoral roll isn’t just important to vote, it can also make a difference to your insurance premiums too. Some insurers have confirmed that they use information on the electoral roll as part of their checks to combat fraud. Not being on the roll or not keeping your information up to date makes it more difficult for them to identify you, resulting in higher premiums or not covering you at all. Therefore, it’s worth registering if you haven’t already and regularly checking that your information is up to date.

3. Trim unnecessary added extras

Understandably, insurers are keen for you to choose as many add-ons to their policies as possible. These usually include lost key cover, legal cover, no claims bonus protection and windscreen cover. However, before you commit, always ask yourself, do you actually need these additional levels of cover? Consider opting out of any you don’t realistically need.

4. Clear your cache or browse ‘incognito’

Put simply, your internet cache is the information your browser stores so that it can load websites quicker. Clearing your cache or using Google’s incognito mode essentially gives you a clean sheet to browse from.

When it comes to car insurance, small files get saved on your browser and this allows the website to identify you as a return visitor if you come back later. This means that they know you’ve expressed interest, and they may offer higher quotes accordingly. This is why you should use ‘incognito mode’, ‘private browsing mode’ or clear the cache regularly, or even better use a new device when looking to purchase a car insurance policy. This way, you can avoid being noted as a return visitor and hopefully save some money. It may not be much, but every little helps.

These are the top 5 tips you should consider when purchasing the first car for your teen. Safety is always the most important criteria, and depending on your budget, you can choose to get a new or used car that has the advanced safety features and the right speed and size. Never forget to test drive the vehicle with your teen so that they know exactly what they will be getting. Also, be sure to get a cheap car insurance quote to help keep ongoing costs manageable. Start doing your research today to find the best car for the best value!

5. Pay upfront or if paying monthly, use a 0% credit card

Choosing to pay for your premiums monthly by direct debit can make life easier by breaking the cost up into manageable chunks over the course of a year. However, insurers charge more for this option as you’re opted into a credit agreement, paying interest on top of the annual premium.

If you can, it’s always worth paying for your insurance in full to get the very best deal. If you’re unable to pay upfront yourself, you could consider signing up for a 0% credit card and make smaller monthly payments until it’s paid off. Just be sure to clear your balance in full before the 0% period ends.

6. Bundle your policies

Do you have other policies with any insurance providers for a pet or home, for example? If so, it might be worth calling them up and seeing whether you could save money by bundling your insurance policies with the same provider. Many insurers offer discounts for having multiple policies with them.

7. Don’t just auto-renew

Insurers will usually ask for a start date for your insurance when you’re conducting your search. If you need cover urgently within the next few days, you may be quoted a higher premium compared to if you had looked earlier. So if you can, try to search and buy your insurance policy two to three weeks before you need it, which should help lower the price significantly.

8. (Legitimately) tweak your job title

When renewing your policy or taking out a new one, try checking to see if tweaking your job title could save you money. Although, make sure that you don’t outright lie as that is considered fraudulent, and may impact your ability to make a claim as your cover may be void. For example, instead of ‘artist’, you could select ‘illustrator’. Essentially, when thinking about whether to tweak your job title or not, always check whether it still accurately describes what you do for a living. If not, then it’s probably best to leave it.

9. Let insurers know you work remotely

If you work from home and don’t need to commute, it pays to make sure you declare this when buying your policy. Letting them know that you don’t use your vehicle to commute to work could significantly reduce your premium due to your car being off the road during peak times.

10. Consider Black Box insurance

A black box uses telematics to gauge how you use your car, looking at the speed, acceleration and the time and day you drive it. It’s particularly popular with new drivers as it helps reduce insurance costs significantly whilst promoting careful driving. Some policies even reward your careful driving by lowering your monthly premiums. If the black box notices you speeding, it can also increase your premiums, so due care and attention are required if you opt for this type of insurance. However, you should also factor in the cost of the box and installation, as this could easily outstrip the cost of just taking an orthodox policy if you’re a low-risk driver without a history of making a claim.

11.  Where you park matters

Where you park your car is a crucial factor in insurance premiums. Basically, the closer you can park to your home, the better. If you state that your car will be left on the road and away from home then it’s more likely to be damaged or a target for thieves, thus making it a higher risk and more expensive to insure. If you have a garage you can park it in, even better. Just make sure that you don’t lie about where it’s parked as if anything does happen and you were to make a claim, then it could be rejected if you’re caught lying as it would be classed as fraud.

12. Increase security measures

Your insurance quote may be cheaper if you look to increase your vehicle’s security. This could include measures such as installing a dash cam, an alarm, a steering wheel lock or an immobiliser, for example. However, not all providers will reduce your premium so it’s worth checking various quotes before you purchase a policy. You’ll also want to make sure any savings are worth it, as you don’t want to spend more money on security than you’d save.

13. Maintain a clean driving record

Avoid reckless driving and getting points on your licence to keep your driving record clean, as safer driving habits can lead to lower premiums. Building and protecting your no claims bonus can also help keep premiums low. A no claims bonus is accrued and added each year you don’t make a claim on your car insurance, which proves to insurers that you’re less likely to make a claim compared with someone without a no claims bonus, all else being equal. You can opt to protect your no claims bonus after five years for an extra fee. It’s well worth considering this add-on as it prevents your insurance from increasing significantly in the event of you having to make a claim in the future.

14. Add a named driver

A named driver is an additional person that you add to your car insurance policy who will then have permission to drive the insured vehicle. Depending on who is being added to a policy, adding a more experienced driver to your policy (such as a parent) can be a massive money saver.

This is a popular option with high-risk or inexperienced drivers who want to reduce the overall cost of their policy, such as young adults or the very elderly. It’s not just useful for high-risk drivers though; additional driver cover can also save money for couples and families who share their car, or those who don’t drive so frequently. For experienced drivers who want to add a high risk driver on their policy however, it can significantly increase their insurance premiums, so be aware.

1*51% of consumers could save £523.47 on their Car Insurance. The saving was calculated by comparing the cheapest price found with the average of the next six cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from August 2024 data. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.