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Car insurance costs are up – 19 ways to cut yours

Car insurance premiums are up by an average of 8% in the last 12 months, according to the latest figures from the Association of British Insurers. if you’re renewing your car policy now, you’re probably trying to figure out why it’s so much more than last year – and what you can do about it.

The main cause of the higher prices is an increase to the Insurance Premium Tax last September. Many types of insurance suddenly got more expensive as a result.

But car premiums weren’t helped by the growing number of personal injury claims, which led to the UK being named whiplash capital of the world last week by insurers Aviva.

How to get cheaper car insurance

So what can you do to battle the rising prices? Here are 19 ways to lower your premium.


Add a second, low-risk, driver – though young or newly qualified drivers can put the price up.


Pay annually rather than monthly – the latter costs more as you’re charged interest to pay by instalments.


Read the policy wording so you know what you’re paying for – find things you can cut out to lower the premium.


Work out how many miles you’re likely to drive in the year - don’t over insure yourself.


Get a telematics “Black box” to prove you’re a safe driver.


Don’t speed – points on your licence will up what you pay.


Ask if there’s a discount for having a no claims bonus.


Use a comparison site, best buy table or broker to shop around for a better quote.


Take an advanced driving test – you might get a discount.


Add a voluntary excess to the insurance – though this means you’ll receive less if you need to claim.


Park in a garage or on a drive – your car will be more secure than on the street.


See if getting breakdown cover separately is cheaper – you might even have it included with your bank.


Try different job titles such as nurse, community nurse and staff nurse. Each could produce a different quote – though make sure they are accurate for what you do.


Do you need a courtesy car if your car is being repaired? If not, see if a policy without brings the price down.


See if there’s cashback available if you switch provider.


Drive a popular car – this’ll lower your premium as they’re easier to repair.


Protect your no claims bonus by only claiming when you need to.


Fit an alarm or immobiliser- and make sure security devices are Thatcham approved.


Ask your existing insurer for a discount – they might match, or even beat, the best quote you find.


These won’t all make a difference for you, but whatever you do to lower your premium, make sure you don’t underinsure you or your car.

Do you have any tips to help drive down the cost of car insurance?

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  • JOAO P FERREIRA / 10 July 2016

    Insurance is really an important cost but just a tiny partial cost of operating an automobile. I remind that the average British spends totally with its car around 70£ per week, 280£ per month and 3400£ per year, just for its automobile. These costs are insurance, fuel, vehicle inspection, vehicle excise duty, car finance, depreciation, maintenance, repairs and improvements, parking, tolls, traffic tickets and washing. This total cost might reach 500£ per month but most people disregard it because they pay such expenditures during different periods within the year. Do yourself your calculation at [LINK REMOVED BY ADMIN] and you might get surprised by the final result. Think afterwards how much you earn and how many days per year you need to work to afford your car.

  • MILES BATTERSBY / 4 March 2016


  • Firoz Noman / 24 February 2016

    Brilliant!!!! There are loads still could be added.
    For example:

    1. open few web browser, enter same information on different different comparison sites and see who offers you best.

    2. All insurance companies are not on comparison sites, like Aviva. So check them too.

    At the moment I could remember these two. But surely your blog is brilliant. Thank you

  • Victoria Mutton / 23 February 2016

    Always ensure your mileage is correct & declare if you don't travel far, as this could lower costs. If you work as a Volunteer for Medical Associations/Police or RNLI you should add it onto your Insurance. As a single Mum with a son who has a long term Medical Condition I opt for full Breakdown to be added on Insurance,but this can vary so you need to have a look round first & see if your Insurance Company can get a better deal for you.

  • Hardip Matharu / 23 February 2016

    Nice one

  • Alistair Baker / 22 February 2016

    Reduced car insurance by taking children off the policy, had them on as a safety measure just in case they needed to borrow car. They are all over 30 have their own cars, so if they need to use cars they inform their own insurer and their policy takes risk. Saved £200 when renewed in January. Also changed excess limit.

  • Jeff Pocock / 21 February 2016

    Very informative, keep up the good work.

  • Gerry O'Brien / 21 February 2016

    My car insurer is LV snd they have a no frills policy. So I cut out foreign use, I keep the mileage in their lowest bracket of 10000.I don't pay the extra premium to protect my NCB.I carry a bigger excess knowing that in the event of a small damage/scrape I would get it done by my local 'little' man for cash. Drive a Mercedes as they are often cheaper than a hot hatch to insure due to the track record of the drivers who buy such.( They are not more expensive to run either). Get it into your head that you are a rubbish driver and so is every other goon out their so stay alert and reduce the aggression and speed. I have been driving for 53 yrs starting with a scooter, motorcycles, cars, trucks, more recently cars up to 200mph and I know I'm not much cop but in that time not even a scrape. A few lucky moments here and there though. It pays to be Irish!

  • Dave Collison / 21 February 2016

    Install an onboard camera

  • Andy Rolinson / 21 February 2016

    Why are some reputable insurance companies quoting for double the amount for the same insurance services, I realise premiums do go up but like for like quotes should be very close to each other surely?

  • Heather Garbutt-Iley / 21 February 2016

    I have worked in the 'insurance' industry for nearly 8 yrs. As previous comments mention, unfortunately if you make a claim your NCD (no claims discount) will be affected until the claim is completely settled, unless you have protected it, in which case you can make two FAULT claims within a three year period and your NCD is safe

  • david bannon / 21 February 2016

    Dont forget to check the age of your child if it is on your car, if they have turned 25 the price should drop, and if with axa you will still lose NCB even if it wasnt your fault, so switching before you know you have lost them is a bloody problem and very unfair.

  • Marina Soc / 21 February 2016

    I was told that keeping my car on the drive pushed my policy up as thieves would know where to go if they wanted to steal it. So parking away from the house brought premium down!!

  • John Parker / 21 February 2016

    Always find it cheaper to change car insurance every year. Moved my wife's and my insurance to different company in October and got cover on both cars for less than I would have paid for just mine. Won't name companies but neither are on comparison websites.

  • Jim Doak / 21 February 2016

    19 tips, plus additional advice on he side, are too many for most people to retain mentally when shopping around by telephone. They are all good tips but should be condensed.

  • Hilary Baker / 21 February 2016

    I set voluntary excess to £0 this has always reduced the cost of my insurance. Also fully comp. is usually cheaper than third party.

  • Tony carvell / 21 February 2016

    Your wrong about garage or driveway,
    It lowers the premium if you say car is kept on road I saved over 100 pound saying car is kept on road.

  • Dom / 21 February 2016

    A dash cam can also help lower the cost and prove who was in the wrong :)