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Find out how you can save hundreds and thousands of pounds on car insurance
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11 legal and tested ways to reduce the price of your car insurance in the UK
Before we start, I implore you not to lie when you buy insurance . You may be able to get a lower price, but if you have an accident you may not be compensated. The biggest car damage was over £15 million. You will be directly liable for any damage that is not insured and the surest way to be uninsured is to lie when you get insurance. Please don't do it!
The guide below explains legal ways to lower your car insurance premiums. While these methods have been tested by many people and work, there is no guarantee that they will work for you. We present them here for your information, but you will have to decide for yourself what works and what doesn't. Let's get started.
1. Add a second driver. I know it's counterintuitive, but it's true.
The easiest way to reduce your insurance cost is to add another driver. You can add anyone from your family or a friend. They must have a UK driving licence and have access to your car (whether they drive it or not). So they must live near you, don't add someone who lives in another town. But please don't add someone who has had any accidents in the last 3-5 years or who has accumulated points on their driving licence.
If you are a young driver, it is best to add a more experienced driver (one of your parents, a friend, etc.). This will reduce your insurance price considerably.
Don't lie! It's okay to add someone as a second driver. But it's not okay for that person to take out the policy in their own name and add you as the second driver, if you'll be driving the car in most cases. This is called "fronting" and is illegal. It can result in your insurance policy being voided and any claim being denied. Don't play with fire!
2. Don't modify your car. Simple!
Any modification, even adding (or replacing) a radio/CD, can increase your insurance price. Why? Very simple: your car is more "attractive" to thieves!
If you modify your engine, bodywork or exhaust pipe, you'd better have big pockets to afford adequate car insurance. Why? Very simple! Because you'll be in the category of car enthusiasts (and who have more accidents and with dramatic and expensive consequences). We know that you're a responsible driver, and that you'll never have an accident. And that's what we want for you. However, insurance companies have no way of knowing this, so they treat everyone "in bulk".
However, there are also modifications you can make to your car that will reduce the price. For example, if you install a video camera (dashboard cam), or an alarm. There are insurers that will offer you a 10% discount if you have a dashcam.
Don't lie! If you've been hit by a car and you've already modified your car, please declare it. If you don't declare it and you have an accident, you're liable. How much? How big is the damage. And I think I mentioned... it could be up to 15 million pounds. Car damage has no limits.
3. Pay annually, not monthly.
Auto insurers offer you the option to pay monthly. Please don't do it. You will pay 20%-30% more. If you can afford to pay the annual amount, it's best. If you can't, see if you have a credit card with zero interest for the first 16-24 months. You can pay with that card and then pay the monthly installment on the card. It's much better. If you can't afford any of the above options, then probably just paying monthly is the way to go. Don't forget that you can cancel a monthly policy at any time and get an annual one when you can afford it.
Can I ask you to subscribe to Oz, your UK asset for free? It will save you money and might even make you money.
Please fill in your first and last name, as well as the email address to which I should send you the guide.
Oh...until I forget. Nationwide pays £200 for 15 minutes of work.
I can send you a little guide explaining step by step how to get £200 from Nationwide. It's simple, anyone with a bank account can do it and get the £200. Leave me your name and an email address where I can send you that guide and other guides that I write from time to time.
Congratulations on taking the first step towards your £200. You will receive the guide by email within the next 10 minutes. In the meantime, let's see how we can lower our car insurance premium.
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Before we move on, a small observation
I know this guide is generic and applies to many people. But at the same time we are all different. Can you tell me a little about your case so that I can publish another guide more relevant to other cases? For example you can tell me that you are a 20 year old driver, driving a sports car (or not), living in London (or not), who has just arrived in the UK (or you have 10 years of experience), that you have a no claim bonus of 1 year (or 10), that you drive a lot of miles (20,000+) or very few (1,000), how much you pay, and other things. Can you tell me in your own words, in Romanian, we read all the messages.
Thank you. You will receive a response within 1-2 days. In the meantime, you can read our general guide below.
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4. Put in a larger voluntary excess. But not too much!
If you agree to a higher excess, for example £500 instead of the normal £250, the price of your insurance can drop significantly. This is especially true if you have had an accident in the past and agree to a higher excess. But be careful not to set it too high - you will have to pay it out of pocket if you have an accident.
Be careful not to increase it too much, especially if you have a car worth £2000 - £3000. You have a chance of not recovering anything from the car in the event of an accident. Moreover, if you put too high an excess (£1000+) some insurers will increase your insurance price.
5. Buy a "black box" policy.
Yes...I know...it's not nice to have a "big brother" in your car. But you can save £300 - £600. It's everyone's choice. I personally only had the first year of the "black box". But it was worth it, I saved £430.
Be careful! If you know you are a more adventurous driver, who "goes crazy" or likes the way it "feels" when you accelerate in curves, it's better not to get a black box because they might cancel your policy. And then you're really in... trouble. Almost no insurer will want to insure you anymore.
6. Visit at least one price comparison site!
The price from the same insurer, for the same risk (person), but through another price comparator may differ (sometimes even substantially). Therefore, it is best to check prices on at least one price comparator (GoCompare, Confused.com, MoneySuperMarket, CompareTheMarket). I have included the link to Confused.com below for simplicity:
7. Buy 3 weeks before the "inception date"
The best time to buy car insurance in the UK is 20-22 days before your current one expires. I know it's not nice to pay a lot of money a few weeks in advance, but every day that gets you closer to the date you need it increases the price. If you want to buy it a day in advance, your price will be astronomical!
8. Drive less.
The more miles you drive, the more likely you are to have an accident. Therefore, the higher your insurance premium will be. If you have a long commute, see if it's a good idea to carpool with someone or take public transportation.
Don't lie! I know it's very tempting to select 3000 miles when you do 9000 miles. But such behavior has two negative implications: a) car insurers know how many miles you have done (it's a public database with MOTs and you can see between the last 2 MOTs how many miles you have done). Therefore they ask you how many miles you do to see if you are lying or not. If the values are very different, they will consider you a liar and the price you will receive will be very high. and b) if you have an accident they may not compensate (although these cases are very rare, but they can happen). Therefore please don't lie!
9. Negotiate with your current insurer.
The English say: "better the devil you know". The Romanians say: "Worse with worse but worse without worse". Insurance companies pay a lot of money to bring in a new client. Therefore, they will give you a pretty substantial discount if you call them and negotiate. In the negotiation process you need to have 3 pieces of information (and tell them):
a) It is preferable that you have not had any claims in the current year. If you have, it is not a huge problem, but then you definitely need the other two pieces of information below:
b) see what the best price is from each of the 4 price comparison sites. Make sure you understand what each offer has (some have other add-ons included, such as legal cover, breakdown cover, etc).
c) Go to sites that are not on price comparison sites, such as direct line. The more information you have, the better you can negotiate.
After you have "done your homework" as above, call your current insurer, explain that you are a loyal customer and want to stay with them, but you still get very good prices elsewhere. Most of the time they will give you a price close to what you have. Generally it will not be lower, but for £5 - £10 it is not worth changing insurer especially if you are happy with it.
10. Think twice before asking for compensation.
If you hit a lamppost, or had a minor accident and your car can be repaired for £200 - £400, it is usually better not to claim compensation. Why? Simple. You will lose 2 times:
a) you will have to pay the excess. The insurance company will only pay you what is over your policy excess. For example, if it costs you £400 to repair your car, and you have an excess of £300, the company will pay £100 and you will pay £300. Is that fair or not? We can discuss it. But that's the law and that's how it's enforced.
b) When you take out insurance next year (and in the next 5 years), the price you will pay for the insurance will be substantially higher. Therefore, the £100 you received from the insurer will be "small child" compared to the price you will pay in the following years. Most of the time it is not worth it.
Furthermore, if you have a "gica SRL" that you know, you might be able to get your car repaired for much less than £400, so it's often preferable to do so.
11. Take an additional driving course. It will cost you £20 - £50, but you could save a few hundred.
The UK government has launched a scheme through which drivers (especially in the first 1-2 years of driving), can benefit from a subsidised course that improves their driving style and reduces the price of their car insurance. The course lasts a few hours, costs you less than £50, and you receive a certificate that you present to the insurance company. Generally, companies reduce the price you pay quite a bit. You can find more details here:
I hope you find this little guide useful. If you've read this far, I think it's clear to you that whatever you do in your relationship with auto insurers, it's best not to lie!