We know car insurance probably isn’t your favourite thing to spend money on. But even though it’s important you have the right cover, it doesn’t mean it has to break the bank!
We’re here to explain what affects the cost of your insurance and how you can help make it affordable for you.
10 ways to get cheaper car insurance
Here are 10 ways you could possibly lower the cost of your car insurance.
Be accurate about your mileage
Telling the insurer the right mileage can save you money. If you drive fewer miles, your cover could cost less.
If things change and you end driving more, you have to be honest and update your policy. If you don’t, it could invalidate your insurance.
Be selective about modifications
Thinking about changing your car? Things like turbochargers and custom vinyl wraps can make your insurance cost go up.
So, make sure you think carefully before you go ahead and make any changes.
Build and protect your no claims bonus
A no claims bonus (NCB) is a discount you get on your insurance when you haven’t claimed in a year or more.
You can build it for up to 9 years, so that means you can keep saving on your cover year after year.
You can also choose to ‘protect’ your no claims bonus. This means you pay a little extra so that even if you do claim, it only reduces your NCB discount a little bit.
It’s useful if you’ve built up many years of NCB, and don’t want to risk starting from zero again.
Find out more about how it all works in our no claims bonus guide.
Take vehicle security seriously
If your car is stolen, the cost of your insurance will likely go up after.
That's because insurers look at different things to decide your price, including your claims history and the level of theft in your area.
And sadly, car thefts aren’t uncommon – so investing in car security is a good idea. That might be things like immobilisers, steering wheel locks or an alarm system.
Also, some insurers actually offer a discount for investing in extra car security.
Increase your voluntary excess
Excess is the amount you have to pay when you make a claim. There are two types:
- compulsory
- voluntary
Insurers set your compulsory excess and you can’t change it. But you can choose to add a voluntary excess, and the amount.
If you agree to a higher voluntary excess, it can lower the cost of your insurance. But you’ll need to make sure you can afford to pay it if you make a claim.
For more info, check out our guide on how car insurance excess works.
Pay your insurance annually
If you can afford to, paying for your insurance annually is cheaper than paying monthly.
That’s because the cost of paying monthly includes interest.
Pick a car in a low insurance group
All cars in the UK are sorted into insurance groups. These groups range from group 1 (the cheapest cars to insure), all the way up to group 50 (the most expensive).
There are a few factors that influence what group a car’s in, including:
- average repair costs
- likelihood of damage
- car value
- performance
- price of parts
- safety and security
For example, if a car's parts are more expensive to replace or the average cost of repairing it is higher, it'll be in a higher group. That means more expensive insurance!
One way to get cheaper insurance is to choose a car that’s in a lower group.
Pick the right cover
Car insurers offer different levels of cover to give you options that suit your budget and needs.
Higher levels of cover include more benefits and higher limits, so are generally more expensive.
Check what each level of cover has on offer, so you can avoid paying for cover you don’t need.
Talk to your insurer
If your situation changes, it could change the cost of your policy too. For example, if you move home, your new postcode might reduce your risk category and bring your price down.
It’s always important to keep your insurer updated if something changes. Find out what you need to tell your insurance company.
Try black box insurance
Black box insurance is a type of car insurance. It’s where a device is fitted in your car that tracks how safely you drive, including things like speeding and how smoothly you drive.
The idea is to reward safe drivers by giving them a discount when it’s time to renew.
It’s often for young drivers – but it can be handy for lots of different people.
Just so you know – at Admiral, you can’t choose to get a black box. We’ll offer it to you based on a few risk factors.
Is MultiCar insurance cheaper?
If you have multiple cars to insure, our MultiCar insurance could help you save.
It means you’ll get a discount when you insure multiple cars on one policy, so it’s usually cheaper than insuring them separately.
What affects the cost of car insurance?
There are lots of different factors that affect the cost of your car insurance.
The driver’s details
This includes:
- If you’re a young driver – generally, young drivers are more likely to be in accidents, so the cost of their insurance can be higher.
- If you’re a new driver – whatever age you are, how long you’ve had your licence will affect your cost.
- If you’re over 60 – drivers over 60 are statistically more likely to be in an accident, so their insurance could cost more.
Vehicle factors
The price of your insurance can vary depending on:
- the make and model of your car
- how much it’s worth
- how old your car is
- repair costs if your car was damaged
How you use your car
When you get a quote, we’ll ask you for how many miles you drive a year. More miles usually mean more time on the road, so your price could be higher.
Where you live
We look at things like:
- the number of claims in your area
- what type of claims there are in your area – for example, if there are a lot of claims for theft near you
You can't control every factor
There are plenty of ways to help keep your insurance more affordable. But, some things are down to factors you can’t change.
For example:
- The cost of claims – if insurers start seeing more claims that are more expensive, the price of everyone’s insurance can go up.
- Fraud – unfortunately, other people committing fraud (things like crash for cash schemes or fake whiplash claims) can drive up prices across the country.
- Regulations and taxes – some government rules and taxes can affect prices. For example, insurers have to charge Insurance Premium Tax (IPT) and the government sets how much it is.
FAQs on getting cheaper car insurance
Got more questions about bringing down the price of your insurance? We’ve got you covered.
Which drivers pay the most for their car insurance?
There are so many factors that go into the price of your insurance, so there’s not one type of driver who pays the most for their car insurance.
Generally, younger or newer drivers pay more. That’s because they’re statistically more likely to be in accidents.
Is it cheaper to insure an electric car?
It used to be more expensive to insure electric cars. That’s because it was more expensive to fix them or replace their parts.
But as they’re getting more common and repairs are getting more affordable, the price is starting to come down.
Do new drivers pay more for their car insurance?
In general, yes. This is because new drivers have less experience on the roads, which means it’s more likely they could get into an accident.
Once you’ve had your licence for longer, the price of your insurance could go down.
