How to Get Cheap Car Insurance

Wondering how to get cheap auto insurance? Above all, the most important step is to comparison shop—motorists can potentially save 80% or more by doing so. Why? For any given driver, the range of quotes offered by insurance providers varies but is typically very wide. The cheapest car insurance policies can cost ~80% less than the most expensive, as evidenced by years of market tests carried out by NimbleFins.

For example, a test in September 2024 for a VW T-Roc found a range of £581 (Hastings Essential) up to £3,534 (Sainsbury's Bank Plus)—representing savings of 84%. If you only get quotes from a single provider, and that provider is expensive for your profile, you will overpay by a lot. Huge savings can be found simply by using a comparison engine to access providers that are cost effective for you.

How to get cheap auto insurance

With car insurance costing 21% more this year according to the ABI (Q2 2024 vs. Q2 2023), comparing car insurance quotes is especially important now. Jonathan Fong, the ABI’s Manager of General Insurance Policy, advised motorists on how to find cheap car insurance:

"Significant and sustained cost pressures faced by insurers, such as a 31% rise in repair costs over the last year, have impacted on the cost of cover... shop around to get the policy that best meets your needs at the most competitive price."

Find cheap car insurance

To find cheap car insurance quotes, compare quotes and follow these other important steps:

1. Pay upfront

If you can, pay for your policy annually instead of monthly, because most car insurance providers charge extra for monthly payments (an exception is NFU). Potential savings could exceed 20% by paying annually.

2. Choose a telematics (black box) insurance policy

A NimbleFins study on telematics car insurance policies found that motorists can save 13% by opting for a telematics policy. And that telematics policies were the cheapest quotes for a sample young driver. Telematics systems monitor driving style (e.g. speed, cornering and braking) and are most applicable for young drivers—those above 30 years old may not find a benefit here. But young drivers with safe driving habits can see premiums lowered as a result.

3. Add a named driver

Adding a second driver to a policy can help lower the premium. While often considered a trick for young drivers, this tip can also lower the rate for drivers of any age. But only list a named driver if they will drive the car. And avoid fronting, which is a crime, by correctly stating which driver is actually the main driver.

4. Pick a car that is cheaper to insure

Car insurance pricing models base quotes on many factors, one of which is a car's insurance group. All cars belong in one of 50 car insurance groups, based on value, engine size, the cost of repairs and parts and safety features. The lower the insurance group, the cheaper the car insurance premium (all else equal).

5. Choose level of cover

Historically, third party policies would be the cheapest (because they don't cover your own car) but that’s no longer the case. This is because over time, insurers realised that third party policyholders cost more in claims compared to comprehensive policyholders. Perhaps those not caring to insure their own car are not careful drivers, resulting in more accidents and third party claims.

Regardless, comprehensive insurance is often the cheapest, despite providing the highest level of cover. Be sure to check higher tiers of cover, even if you're trying to save money.

6. Increase your excess

The excess is an amount the policyholder pays in order for a claim to go forward. There are two types of excess:

You must pay both excesses, but you can choose your voluntary excess when getting a quote. Increasing this amount can lower your overall premium but remember that it still needs to be affordable. You will need to pay the entire excess (compulsory + voluntary) if you make a claim.

7. Increase security

Cars that are harder to steal (or vandalise) typically cost less to insure. Parking in a lockable garage or a private driveway can save money on car insurance, as can adding extra security like an immobiliser (e.g. steering wheel lock).

If you choose to add-on security devices, look for those approved by Thatcham who are experts in car safety and security. And you must use any devices that you declare to your insurance provider.

8. Amend your job title

Modifying your job title can lower your premium as some careers are considered ‘riskier’ from an insurance point of view. Needless to say, the job title you choose still needs to accurately reflect what you do. But, it could be worth checking what your options are and how they impact your quote price. For example, if you’re a nurse, many quote systems offer the choice of ward sister, theatre nurse and intensive care nurse.

9. Take care with optional extras

Insurers may offer add-ons for an additional premium, such as breakdown and recovery services, courtesy car or European cover. Optional extras may be useful but if you don’t need them, it’s a false economy.

You might also find that popular extras such as breakdown insurance are cheaper if bought as a standalone policy. Some banks also include odd insurance perks as part of their current account extras, so check whether you might already be covered. Or if you have access to another vehicle or public transport, you might not need extra courtesy car cover.

10. Never auto renew

Don’t assume auto-renewing will give you the best price. Always compare quotes a few weeks before your existing policy ends so that you’ve got enough time to consider all your options. The best time to compare car insurance is around 3 weeks ahead of the start date, according to a NimbleFins study on when to buy car insurance.

11. Consider a multi car policy

If your household has more than one car, a multi car policy could save up to 15% or £414, according to the NimbleFins study, how much cheaper is multi car insurance?

12. Complete an advanced driving course

Some insurers will discount your premium if you’ve completed an advanced driving course, such as Pass Plus.

Not all insurers will offer this and if they do, not all courses will entitle you to reduced premiums. But, if budget is your focus, speak to your insurer to see what courses they recognise and how much it might reduce your premium by.

13. Accurately state annual mileage

Use a mileage calculator to accurately estimate how much you drive each year, because car insurance companies charge higher premiums for cars with higher mileage. This is because more time on the road = more risk of an accident (and subsequent claim). But don't underestimate your mileage to save money, as this could potentially invalidate the policy.

Above all, with all of these tips and tricks, be accurate. If you lie or are misleading, your policy could be invalidated when you most need it, leaving you unprotected and liable for losses yourself.

Where can I find cheap auto insurance

To find cheap auto insurance, look at a comparison engine to easily compare dozens of quotes. The biggest savings may be found by checking more than one comparison engine, because the panel of insurance providers differs from one comparison engine to the next. Get started below and find cheap auto insurance quotes in under two minutes!

According to NimbleFins' analysis, the table below ranks the top car insurance comparison sites according to their customer ratings from Trustpilot and Reviews.co.uk. Compare quotes via our partner with the QuoteZone comparison panel now.