Cheap car insurance in the UK

Getting Affordable Car Insurance in the UK: A Guide for Drivers

Buying car insurance can be a headache, especially if you're on a tight budget. Premiums in the UK are notoriously high, with the average annual cost now over £450, according to the Association of British Insurers. But there are ways to get cheaper car insurance without compromising on coverage. This guide will walk you through some tips and tricks to slash your premiums.

Shop around and compare quotes.

The first step is to spend time shopping around. Car insurance is a competitive market, so get quotes from as many providers as possible. Comparison sites like Confused.com, Comparethemarket.com, and MoneySuperMarket can give you a good idea of prices from major insurers. Be sure to also check directly with insurers, not on these sites.

Look for comprehensive coverage, including theft, fire, accidental damage, and third-party liability. This gives you protection against most incidents. Pay attention to voluntary excess levels too; choosing a higher excess usually lowers premiums.

Spend time going through the different quotes. They may vary widely, so dig into the details to find the best value. Don't just renew with your existing insurer automatically.

Maximise No Claims Discount

Your no-claims discount (NCD) is one of the biggest factors in your car insurance rate. It can slash 50% or more off your premiums. Make sure to maximise your NCD by not having to make any claims. Keep your driving record clean, and if you don't claim for a number of years, you may be eligible for larger discounts.

Also, consider no-claims protection to ensure your NCD isn't impacted by any claims made against your policy in the future. This adds a small premium but protects your discount.

Enhance vehicle security.

Insurers offer discounts for additional security and safety features. Consider enhancements like:

• Alarm system
• Tracking device
• Immobiliser
• Parking sensors
• Dashcam

Adding some of these can shave 5–15% off your premiums. But make sure to inform your insurer of any new systems.

Pay Annually

Most insurers charge an additional fee for monthly payments. Paying annually avoids these fees and can save you 5-10%. Make sure to factor in the annual payment cost when comparing quotes.

Setting up an automatic credit card payment for the annual premium is an easy way to avoid missing payments and having your policy cancelled.

Increase Your Voluntary Excess

As mentioned earlier, choosing a higher voluntary excess reduces your premiums. Sometimes substantially. Be sure to play around with the excess levels and understand the savings on offer.

Just keep in mind that you'll pay this excess if you need to make a claim. Make sure your emergency savings can cover the excess amount in the worst-case scenario.

Consider telematics "Pay How You Drive" insurance.

Telematics insurance involves installing a small device in your car to monitor your driving. It tracks metrics like speed, acceleration, braking, and cornering. The better and safer you drive, the bigger your discount.

Savings can be massive—up to 70% for the best drivers. But consider privacy concerns before signing up.

Choose a Lower-Emissions Car

Cars with lower CO2 emissions tend to have much cheaper insurance. When buying a new car, compare insurance rates. Go for cars with emissions below 100 g/km for the biggest savings. Diesels also often have lower premiums than comparable gasoline cars.

Reduce your annual mileage.

The higher your estimated annual mileage, the more you'll pay for insurance. Be honest about your expected mileage for the year ahead. If you anticipate driving fewer miles than last year, inform your insurer to bring down premiums.

Take advantage of special discounts.

Many insurers offer discounts for certain professions, associations, union memberships, and alumni groups. Ask your insurer about any special discounts you may qualify for.

For example, certain professions, like doctors, nurses, and teachers, can get 10% off their car insurance. Seeing if any groups you're part of have arranged preferential rates can lead to major savings.

Choose a higher policy. Excess

Opting for a policy with a higher compulsory excess allows you to reduce your premiums, sometimes substantially. Just keep in mind that you'll have to pay this excess amount if you need to make a claim. Make sure you have savings to cover this excess amount in an emergency.

Use a dash cam.

Installing a dash cam in your vehicle can lead to cheaper premiums with some insurers. Dash cams provide video evidence in the event of an accident, which protects you against fraudulent claims. Let your insurer know once you've installed one.

Avoid making small claims.

It's often said that making one small claim can increase your premiums as much as having a serious accident. Insurers don't like frequent claims, so avoid making small claims where possible. Only claim when absolutely necessary.

Shop around at renewal time.

Don't automatically renew your policy when it runs out. Spend time shopping around again, and there's a good chance you'll get cheaper insurance than just renewing. Loyalty doesn't pay when it comes to car insurance, so be prepared to switch providers if needed.

Consider adding a second responsible driver.

Adding another experienced, responsible driver to your policy often lowers premiums. This might be helpful if you have a partner or other household member with a clean driving history who could be a named driver. Just make sure they actually drive the car.

Drive Safely

The most straightforward way to get cheap car insurance is to be a safe driver. Drive defensively, stick to speed limits, and avoid making claims. The longer you can go without an accident or traffic offence, the bigger your savings over time. A clean driving record should be your target.

Use online tools.

Many insurers now offer apps and online tools to help monitor your driving and keep your premiums down. Features like crash detection alerts, accelerometer tracking, and real-time feedback on braking and acceleration can all help. Make the most of technology to prove you're a safe driver.

Review Exclusions

Carefully read your policy documents and look for any exclusions. Comprehensive policies shouldn't have too many exclusions, but it's still worth checking. Understand exactly what you are and aren't covered for to avoid nasty surprises later on.

Avoid Fronting

Fronting is when parents insure a car in their name, but the main driver is their child. This keeps premiums artificially low but is seen as insurance fraud. Make sure to always be honest about the main driver of any car you insure.

Pay monthly without fees.

Some insurers allow monthly payments without additional fees. Direct Line, for example, offers this. Paying monthly can help manage cash flow after the initial payment. Just make sure to avoid any insurers that charge fees for monthly payments.

Consider usage-based insurance.

Usage-based or pay-per-mile insurance charges you based on how much you actually drive. This can work out cheaper for low-mileage drivers. Make sure to read the fine print carefully when considering usage-based insurance.

Avoid Modifications

Inform your insurer of any modifications to your car. Engine tuning, lowered suspension, alloy wheels, and exhaust upgrades can all increase your premiums. Keep any modifications declared or avoid them altogether to save money.

By following the tips in this guide, you should be able to find affordable car insurance in the UK, even on a tight budget.

The key is to shop around, maximise your no-claims bonus, boost vehicle security, reduce your mileage, avoid claims, and drive safely. Combine these, and you'll slash your premiums while still getting comprehensive coverage.