Banish those car insurance blues with these useful cover-crunching tips.
Average UK car insurance premiums soared by 33% in the first quarter of 2024 compared to the same period in 2023, from £478 to £635.
However, there were signs of costs easing, with just a 1% rise month-on-month in June.
Nevertheless, given the pressure on household finances, it's a substantial extra cost that shows no sign of reducing.
Thankfully, there are ways to drive down the cost of car insurance.
Read our top 8 cheap car insurance tips for 2024...
1. Register on the electoral roll
Being on the electoral roll should help improve your credit score, which a motor insurer will look at before giving you a premium quote.
Additionally, insurers are always looking for ways to reduce insurance fraud. Being on the electoral roll demonstrates you are who you say you are - and you may be offered a lower premium as a result.
You can register to vote quickly and easily by visiting: gov.uk/register-to-vote
You'll need your National Insurance number and passport for this process.
Be sure to update the electoral records if you change address.
Adding yourself to the electoral roll is one of the simplest and most effective cheap car insurance tips.
2. Improve your credit score in other ways
If your insurance is not due for, say, another six months, look for ways to give it a boost.
First, check your credit score using free services like Experian or ClearScore.
Paying bills on time, disputing credit report inaccuracies, minimising the use of credit and limiting credit applications can all help boost your credit score.
3. Turn off auto-renew and start hunting for a better deal
Thanks to legislation passed in 2022, insurers can no longer simply hike car insurance premiums after a year. However, the premium they offer still may not be the best deal available.
With this in mind, ensure your policy is not set to 'auto renew' - well in advance of the renewal date.
This gives you the opportunity to do some research and see if your current insurer's premium offers good value compared to the general market.
Spend some time hunting around for better quotes and either go with these or use them to ask your current insurer for a better deal.
Use price comparison sites - but remember that not all car insurers are listed on them.
Popular comparison sites include:
- Confused
- CompareTheMarket
- MoneySuperMarket
Turning off auto-renew puts you in a more powerful position to negotiate a lower premium, while giving you the time to find a better deal. Spending just a couple of hours of research could save you a substantial sum.
Ask about extra discounts for things like low mileage, having a safe driving record and having more than one policy with a particular provider.
However you approach getting a lower premium, ensure your cover does not lapse.
4. Organise your insurance early
Aim to have your new insurance in place 3 to 4 weeks before your current policy expires. This way you'll avoid that last-minute panic that may compel you to opt for your current insurer (which might mean paying more).
Whenever getting new quotes or negotiating with your current insurer, make sure all your documentation is up-to-date and that you have all the relevant information to hand. This includes things like current policy details, vehicle registration, driving licence and any updates to your driving record.
Once you've got a new deal in place, double-check the documentation for accuracy and keep it somewhere safe for quick and easy access.
Note that it's best to keep your insurance information with you in your car, in case the police ask you for it. However, if you don't have it with you, you will be given a week to produce the documents at a police station (it's the same if you can't produce your driving licence or MOT straight away).
5. Harness low mileage to get a better deal
If you tend to drive less than 5,000 miles a year, be sure this is taken into account when you get any new quote.
You may even decide to combine driving with using public transport, cycling or walking over the next 12 months, in which case you can take advantage of the lower mileage discount.
Remember that you are entitled to free bus travel once you reach the state pensionable age in England or Wales, or 60 if you live in London.
In Scotland, you're entitled to free bus travel if you are aged 60+ or have a disability.
Note that the low mileage limit can vary among insurers, so it might be more or less than 5,000 miles per annum.
6. Improve your car's security features
Vehicle crime remains a big problem in the UK, particularly in London, the West Midlands, Bristol and South Yorkshire.
But by enhancing your car's security measures - such as with enhanced security locks and alarm systems - you'll help reduce the chance of having your car stolen or broken into, while potentially enjoying lower insurance costs.
Once you've made improvements, tell your insurer and ask about any discounts.
7. Consider 'black box' telematics
Telematics insurance or 'black box car insurance' involves having a small device fitted to your car which measures how well you drive. Safe, sensible drivers are then rewarded with lower premiums.
A black box will measure things like speed, when you drive (regular motoring between 10pm and 4am will reduce your 'score'), smoothness, and cornering.
However, a lower premium will only be offered after a period of driving with the black box fitted (assuming you have been driving well).
This option is generally aimed at new or young drivers, who are statistically more likely to be involved in a collision and therefore get quoted higher car insurance premiums.
8. Pay the car insurance premium in full for the year
Given the current pressures on family budgets, shelling out for a whole year's car insurance might not be easy. But if you can pay upfront, it will save you money compared to paying month by month.
Your insurer may also offer bi-annual payments, which should also be cheaper than paying monthly.
Find out how much you could save by paying upfront. This might inspire you to find the funds to pay your car insurance premium in one go.
