How to Save Money on Car Insurance in The UK?

save money on car insurance

Many British citizens struggling to find out ways how to save money on car insurance in the UK. Possibly, there are several ways that you can follow to get quick savings on your policy.

Though there are cheaper car insurance policies in the UK, these are unattainable. Because these come with several factors that are out of your control such as where you park your car overnight, how old your car is, your driving experience, and more.

Also, your age is an important key factor in your car insurance premiums. Younger drivers need to pay more insurance premiums because a vast number of insurance providers consider this less experience of the younger drivers as a high-risk factor.

But, whatever your circumstances, there are some ways to save money on your car insurance including black box insurance. But, to avail yourself of money-saving car insurance, you should not provide any false information to the provider because it can invalidate your policy. So, you should not lie to avail a cheaper premium.

So, if you are looking for ways to save money on car insurance then this article is for you. Here, in this article, we are going to provide several money-saving tips on car insurance premiums. Let’s dive into the deep!

Some effective money-saving tips on car insurance in the UK:

1. Shop Around:

Shopping around is the best way to save money on your car insurance. It does not mean that you need to spend hours online or on your mobile phones to get quotes from every car insurance company on the land. An online comparison service will do the hard work for you.

You need to put in all the details and check the prices that come up. You can also alter the mileage you will drive and excess the amount that you are willing to pay. According to that, you will get new quotes.

Getting a quote is very easy using price comparison websites. You need to compare each policy like-by-like. Some policies may seem cheaper on the surface but while you inspect closely you can see that they are not offering the same level of coverage when you make a claim.

You also need to check the insurance providers that don’t feature on insurance sites like Direct Line. Direct Lane and NFU Mutual are the insurers that are not on the comparison site. 

Moreover, you must keep in mind that the cheapest quote may not be the best one. You need to research well and check what policy will provide the best coverage in the long run. It is possible that the expensive policy may offer better coverage in the long run. 

2. Pay your premium annually:

Similar to many things, paying for your car insurance in a lump sum instead of paying monthly can be cheaper. It seems to be a loan with monthly interest if you go forward with monthly paying.

You can also pay the whole-sum amount of the premium using a credit card and then pay off the borrowed amount within several months. It will also reduce the amount of interest paid.

If you can sign up for a credit card that offers purchasing with 0% interest then you can fearlessly use the card to pay your premium. You can also look for a card that rewards purchases with cashback or points.

3. Increase your excess:

Excess is the amount that you will pay at the time of a claim. Excess splits into two parts-voluntary and compulsory. These two factors together are known as total excess.

If you choose to pay a higher voluntary excess then it will lead to reduce your car insurance premium. But, you need to be aware of the fact that will take place in the event of an accident.
Moreover, you will not be able to make a claim if the value of your claim is lower than your total excess. Suppose, your compulsory excess is 250 Pounds and your voluntary excess is 250 Pounds, and your claim exceeds 500 Pounds.

If the cost of the repair is 550 Pounds then you first need to pay the voluntary excess+ compulsory excess, and that is 500 pounds. Then your insurer will only contribute 50 pounds. That is not a good deal, especially as you lose any no-claim discounts you would accrue. 

As you intend to reduce the amount of premium as much as possible by increasing your excess, you need to be careful while signing up for an excess that you will struggle to pay in case of an accident. 

3. Add a named Driver:

Adding a named driver means that another driver can drive your car and you both will be covered if something goes wrong. With a comprehensive insurance policy, another named driver will also get the same coverage when driving your vehicle. 

Adding a named driver can lead to lower the cost of the insurance as the insurer assumes that you will spend less time driving. So, the insurer assumes that there is a lower chance of getting an accident and filing a claim. That leads to lower car insurance quotes. Always you must be honest about who the main driver is otherwise there is a risk of invalidating your insurance coverage. 

4. Watch out for insurance add-ons:

There are various add-ons and available extras that come with a car insurance policy. These benefits also vary according to insurers. Some comparison sites or insurers automatically add these extra benefits to your insurance quotation and also increase the price. You must closely review your cover before proceeding to any insurance renewal or new policy.

You can find legal cover, breakdown cover, and no-claims bonus protection among the optional extras on offer. These add-ons are practical, they are not essential. You must go forward with an insurance policy that suits your needs, so you must review the policies whether you need each optional extra before adding them to your policy.

5. Check your mileage:

Low mileage refers to less driving, so the insurer will assume that there is a low chance of getting an accident. That will lower your premium. But, it is essential to calculate the mileage when you are going to apply for car insurance.

You can put out an MOT certificate to check your annual mileage from previous years. However, you need to think about whether you can reduce your mileage, such as taking the bus for some journeys, cycling, or carpooling with friends or colleagues. 

Also, you can tell the insurer if you don’t use the car to go to the office. 

6. Think about your job title:

As insurance comes with risk factors, if the insurer realizes your job is low-risk, your coverage will be cheaper. If the insurer considered your job as high risk then you need to consider a few factors.

You must be honest while applying for car insurance and you must provide the correct information about your occupation. But, you must look for the appropriate job title in the dropdown menu of occupations that fit well the bill.

There might be more than one job description of your role. For example, if you are a journalist who never leaves their desks can also describe their job roles as subeditors or writers instead of journalists. This trick may bring the price down. 


Why is car insurance expensive in the UK?

Ans: Modern cars are equipped with advanced technology and safety features, these factors lead to expensive repairs. That is why insurers provide insurance policies at higher rates of premiums.

How much is car insurance per month in the UK?

Ans: Between January and November 2022, the average car insurance cost in the UK was 456 Pounds. This is equivalent to 38 Pounds each month. If you choose to pay monthly, interest will be added on top of the amount. So, it will cost more overall. 

What is the cheapest type of insurance coverage in the UK?

Ans: The cheapest type of car insurance will depend on your personal circumstances including your age, occupation, and type of car that you drive. Moreover, fully comprehensive coverage is the cheapest type of car insurance. It will provide the most coverage among the three policy types.

Is car insurance a must in the UK?

Ans: Yes, you must have motor insurance to drive your car on the roads of the United Kingdom. You can go forward with third-party insurance. It means you will get coverage if things go wrong such as you hit an accident, or injured any person, vehicle, or property. Also, it will not cover any other costs such as repairing your vehicle.


Drivers are hit with the wave of high car insurance premiums. You can potentially save hundreds of pounds a year on car insurance by switching insurers, although most of us stay on the same policy and pay far more than we need to pay. 

You can check the prices through Comparison sites and compare the best deals across a huge range of insurers in less than ten minutes. You can also compare the quality of the policies to get the best deal ever.

Switching the insurer is not the best way to reduce your car insurance costs. Rather, you can apply these above-mentioned ways to save money on car insurance in the UK.

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