How to Get Cheaper Car Insurance
12 February 2025 | 
Phil Evans
We all want to get the best deal possible—especially when it comes to car insurance. But with so many factors affecting your premium, from your age and occupation to whether you’ve built up a no claims discount, it can be tricky to know where to start.
To help you save money, we’ve pulled together 22 practical ways to lower your car insurance costs—whether that’s switching cars, switching providers, making small changes to your driving habits, or making use of temporary car insurance options.
22 Ways to Lower Your Car Insurance Costs
1. Don’t Auto Renew
Since 2022, insurers can’t charge renewing customers more than new ones, thanks to Financial Conduct Authority (FCA) regulations. But that doesn’t mean your renewal quote is the best deal. Shopping around before your policy ends could save you hundreds.
If you need more time to compare quotes, consider daily insurance to keep you covered between policies. It’ll help give you breathing space to shop around.
2. Get Your Quote Early
Leaving looking for a new policy till the last minute can cost you. Drivers who get a new quote at least a month before their renewal date tend to secure much cheaper premiums than those who leave it too late. Insurers see early planners as lower-risk drivers—so don’t wait until the last second.
3. Add a Responsible Driver
Young or new drivers can cut costs by adding an experienced, low-risk driver (like a parent or partner) to their policy. This can reduce the risk profile and, in turn, lower premiums.
They shouldn’t be added as the main driver for a car they will hardly be driving though, this is known as insurance fronting, and is a type of insurance fraud.
4. Adjust Your Job Title
Your occupation affects your premium, but wording matters. For example, “editor” may get a lower quote than “journalist” because insurers see one as office-based and the other as out on the road.
You must always be truthful though —listing a false job title that seriously misrepresents your occupation could invalidate your policy. But if your role has multiple descriptions, choose the one that best fits while lowering your costs.
5. Get on the Electoral Register
Insurers use the electoral register for ID verification. If you’re not on it, they may charge a higher premium. Registering at your current address is a quick, free way to reduce your costs.
6. Pay Annually, Not Monthly
Paying in one lump sum is almost always cheaper than paying monthly, as insurers charge interest on instalments.
7. Switch Providers
You don’t have to wait until renewal to shop around for a new policy. If you find a cheaper deal mid-policy, switching could still save you money.
While you may need to pay a cancellation fee, the savings from a new policy could outweigh it. Check your provider’s cancellation terms before making the move.
8. Improve Your Credit Score
A higher credit score signals reliability to insurers, often leading to lower premiums. Paying bills on time, reducing outstanding debt, and checking for errors on your credit report can all help improve your rating, thus lowering your premiums.
9. Increase Your Voluntary Excess
Opting for a higher voluntary excess (the amount you pay before your insurer covers a claim) will lower your premium. Just make sure it’s an amount you could actually afford to pay out if needed.
10. Upgrade Your Car’s Security
Adding approved security devices like immobilisers, alarms, and tracking systems can reduce your risk of theft and lower your premium. These are just some car modifications that could lower your insurance costs.
11. Build Your No Claims Discount
The longer you go without making a claim, the bigger the discount on your renewal. Minor damage? Consider paying out of pocket rather than claiming, to protect your discount and help lower your insurance.
12. Remove Unnecessary Add-Ons
Extras like breakdown cover, windscreen protection, and courtesy car cover can increase your premium, so it’s worth reviewing whether you really need them before renewing. You might also find better deals elsewhere rather than automatically opting for the add-ons offered by your insurer. Shopping around could save you money while still providing the cover you need.
13. Drive a Lower Insurance Group Car
Your car model has a huge impact on your premium. High-performance, modified, or expensive cars cost more to insure—so if your insurance is too high, switching to a cheaper-to-insure car could make a big difference.
14. Complete an Advanced Driving Course
Advanced driving courses like Pass Plus show insurers you’re a safer driver, potentially reducing your premium. Always check with your provider first to ensure it qualifies. This is especially useful for new drivers, helping to build confidence and reduce the risk of accidents.
15. Keep a Clean Licence
Points, fines, and convictions will increase your insurance costs—so drive carefully and obey the rules. Even points on your provisional license can cause you to face higher insurance costs when you eventually pass. It always pays to be a safe driver.
16. Record Your Mileage Accurately
Many drivers overestimate their annual mileage, which can increase their premium. If you drive less than expected, update your insurer to see if you qualify for a discount. Never underestimate your mileage dishonestly, as this could invalidate your cover.
If you’re a low-mileage driver, car sharing could be a smarter, more cost-effective option than owning a car that rarely gets used. Instead of paying for an annual policy on a vehicle you hardly drive, car sharing insurance could allow you to borrow a car only when you need it, helping to significantly cut costs.
17. Consider Black Box Insurance
Black box insurance uses a telematics (black box) to monitor your driving and rewards safe habits with lower premiums over time. Great for young or new drivers looking to prove themselves to insurers.
18. Install a Dash Cam
Many insurers offer discounts for dash cam users, as footage can help settle claims quickly and prove fault in accidents.
19. Park Securely
Where you park overnight impacts your premium. A garage or driveway is safer than street parking, reducing your risk of theft or damage.
20. Check for Hidden Fees
Some insurers charge admin fees for changes like updating your address. Review the fine print to avoid unnecessary costs.
21. Negotiate With Your Insurer
Got a cheaper quote from another provider? Call your insurer and ask if they’ll match or beat it. Many will offer a better deal to keep your business.
22. Use Temporary Insurance When Needed
Temporary car insurance is a flexible and cost-effective way to stay covered without committing to a long-term policy. Here’s how it can help you keep insurance costs low:
- Learner drivers can get cheaper cover – Temporary learner insurance is often the most affordable way to insure a learner driver, without impacting the vehicle owner’s no-claims bonus.
- Pay only when you need to drive – If you share a car, temporary insurance lets you get covered only when you need to use the vehicle, rather than paying for a full-time policy as a named driver.
- Bridge the gap between policies – If your annual policy has ended and you need time to shop around for a better deal, temporary cover ensures you stay legally insured while finding the right option.
- Cover for short-term car use – Whether you’re borrowing a car for the weekend or driving a newly purchased vehicle home, short-term insurance keeps you covered without a long-term commitment.
For flexible, pay-as-you-go insurance, temporary cover is an easy way to stay protected while keeping costs low.
Get Cheaper Car Insurance Today
There are plenty of ways to lower your car insurance costs—but the key is being proactive. Whether you’re tweaking your policy, improving your driving habits, or switching providers, a little effort can lead to big savings.
Need time to compare quotes? Stay covered with temporary car insurance while you shop around. Get a quick quote today and drive with peace of mind and a happier wallet.
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