Published: 31/07/2022

Reduce the cost of your insurance premium


We all want to reduce the cost of our insurance premiums. If you want cheaper car insurance, then it can pay to shop around. While the cost of accident repairs and personal injury claims can push car insurance premiums up. Competition for customers keeps price rises in check, but be aware some insurers may cut policy benefits to produce a 'cheap' premium.

There are things that you can do which could help reduce the cost of your car insurance premium.

Look at the policy benefits – not just the price

Check, does the policy give you benefits that could be useful? These could include:

  • A courtesy car while yours is being repaired.
  • Windscreen chip repairs
  • Help with the recovery of uninsured losses (which could include your out-of-pocket expenses after an accident).
  • Cover while driving in Europe.

Always check the compulsory excesses and the policy benefits, before accepting a quote.

Think about your driving

The way you drive can help if you want to reduce your next car insurance premium.

A speeding ticket is likely to increase your premium, so stay within the speed limit. If you reduce the annual mileage on your vehicle, perhaps by cutting back on journeys or using other forms of transport, you're likely to cut your premium as well. Remember to advise your insurer if you get a ticket or cut your mileage.

A secure car can reduce insurance costs

Don't park your car on the street at night if possible. Keeping it on your drive is preferable, but use the garage if you have one, and lock it at night. The extra security could bring a discount on your premium.

You can improve the security of your vehicle even more by upgrading the security. Insurance companies can tell you which tracking devices and immobilisers are likely to reduce your premium.

Tips for young drivers

It's worth considering the Driving Standards Agency Pass Plus course if you're a young or newly qualified driver. It helps you improve your driving skill and experience in key areas like driving at night and on motorways, and could get you a discount on your car insurance.

More about cheap car insurance for young drivers

Tips for older drivers

Are you a parent with teenage children who are learning to drive? If you get your son or daughter insured as an additional driver of your car and they have an accident, your no claims discount will be affected. So, it's worth encouraging them to buy their own car and insure it themselves. This will help them gain their own no claims discount and cheaper car insurance in the long run.

When you do retire and end the daily commute, remember to tell your insurer about the reduction in your annual mileage. It could reduce your premium.

Consider voluntary excess for cover

Finally, consider how much you'd be prepared to pay out if you have to make a claim. If you can afford to pay another £100 or £200 as a voluntary excess, your annual premium costs may come down.