Insider Tips for Finding the Cheapest Car Insurance

Getting the best car insurance deal can seem daunting, but with some research and comparison shopping, it is possible to find coverage that fits both your budget and needs. Here are some tips on how to secure the best car insurance rates.

Do Your Research

The first step is educating yourself on the different types of car insurance policies and coverage options available. At a minimum, UK law requires motorists to carry third-party insurance which covers damage you cause to others. However, comprehensive policies that also include theft, fire, vandalism and weather damage are recommended for fuller protection. Know the different levels of coverage so you can build a policy specific to your situation. 

Check Various Factors That Impact Premiums

Insurers evaluate driver risk using factors like age, driving history, annual miles driven, vehicle make & model and where the car is parked. Understanding these variables will help explain pricing differences between providers. For instance, more annual miles driven or a sporty vehicle model can increase your premiums. Asking about discounts like low mileage, additional driver exclusions, advanced driving courses or affiliations can also lower quotes.

Compare Quotes From Multiple Providers

One of the biggest mistakes drivers make is only getting one car insurance quote. Prices can vary widely between insurers for the same coverage. Obtaining multiple quotes level the playing field and helps you leverage bargains. Quoting is quick and easy using insurer websites and online comparison sites. Be sure to compare not just premium prices but also coverage inclusions like roadside assistance or courtesy cars.

Tweak Your Job Title

Insurance quotes rely on risk-assessment so how you describe your occupation can impact pricing. Vague labels like “professional” or “administrator” may afford higher premiums. If permitted, use a more specific lower-risk job title like “computer consultant” or “retail sales associate” to avoid blanket categorisation as high-risk or inflated rates.

Pay Annually vs Monthly

Most insurers charge instalment fees for people making monthly payments rather than paying in full annually. This can add 10-15% over the course of a year compared to annually. If cash flow allows, paying annually avoids this extra cost. Some insurers also give discounts for renewing policies or paying ahead for multiple years so ask what deals exist.

Increase Your Voluntary Excess

Voluntary excess is the amount you agree to pay towards a claim before insurance covers the remainder. Accepting a higher excess lowers premiums but your potential out-of-pocket claim costs rise. Evaluate your risk tolerance and past claim history to decide if bumping up excess makes sense. New customers in particular may save considerably.

Avoid Penalty Triggers

Insurers often have penalty triggers written into policies which allow them to increase your premiums even after minor incidents. Common examples include small no-fault claims, accidents where you were not at fault, having no claims protection cancelled by contacting insurance before policy renewal, or policy cancellations mid-term which can flag you as higher risk. Knowing these penalty triggers can help avoid unnecessary premium hikes. 

Telematics or Black Box Policies

Insurers are increasingly using black box telemetry devices installed in customer vehicles to monitor driving data and behaviours over time. Safe drivers are rewarded with discounted premiums and cashback incentives. Blackbox providers promote savings of over £200 for participating drivers along with improved safety. Though not right for everyone, black boxes deserve consideration.

Maintain Good Credit Rating

Though not always obvious, your personal credit rating impacts insurance pricing much like a car or home loan since it reflects financial responsibility. You have a legal right to check your credit file annually for free so keep your rating healthy to access the best loan and insurance rates. Pay all bills on time, avoid court judgments against you and limit credit applications.

Check with Specialty Brokers

If you have a high-performance vehicle, custom equipment, a new license or points on your driving record, considering a specialist motor insurance broker can be worthwhile. They have expertise in obtaining coverage from niche insurers catering to non-standard UK drivers that high street insurers may turn away. Though broker fees apply, the expanded insurance access is often worth it.

Follow Through with Defensive Driving Courses

Ask your provider or broker about accountability programs like additional testing requirements, financial incentives for safe driving through a telematics black box, or defensive driving courses which can all qualify you for lower premiums. Responsible driving habits make you less risky to insure.

The car insurance marketplace is highly competitive allowing diligent consumers multiple opportunities to find affordable rates. Do your homework obtaining customised quotes after considering the range of variables that dictate pricing. Re-shop policies annually and negotiate loyalty discounts to ensure you get the lowest premiums possible from year to year.