Car insurance – How to get the best deal

Money Advice Service

Looking for the best car insurance deals? This guide will take you through the best way to get cheap car insurance and explain how to use online comparison sites, best buy articles and insurance brokers. Our five-step guide could save you hundreds of pounds on car insurance.

1. Lower your risk

Shopping around

It’s now easier to find the best deal by sharing your banking information. Find out more about this here.

Cheap car insurance is not necessarily the best car insurance, but there are a number of things you can do to lower your insurance risk and get cheaper car insurance.

Make your car more secure

Top tip

Call BIBA (0870 950 1790) to get an insurance quote. If you have special circumstances they can help put you in touch with a specialist broker. Always seek more than one quote before you make your final decision.

  • Fit an approved alarm or immobiliser.
  • Park in a garage or driveway if possible
  • Make sure security devices are Thatcham approved.

Drive a make and model from a low insurance group

  • Choose a make and model from a low insurance group for a lower premium.
  • Insurers prefer popular models which are not as expensive to repair.

Be accurate about your mileage

The lower your annual mileage, the lower your premium.

However, don’t underestimate your mileage as this could invalidate your insurance when making a claim.

Drive safely

  • Prove that you are a low-risk driver – some insurers will give you a discount if you have taken a Pass Plus or advanced driving course. Find out more about Pass Plus on the GOV.UK website.
  • Insurance claims or points on your licence will increase your premium.
  • Consider getting a policy which includes an assessment of your driving with telematics (‘black box’ technology). If you can prove you’re a careful driver, this could result in a lower premium.

Add a second driver

  • Smooth out the risk by adding a second, low-risk driver – even if they don’t use the vehicle much. (Adding newly qualified young drivers will increase the premium).
  • Don’t break the law by pretending the second driver is the main driver.

2. Lower the price

There are a few things you can do which might lower the price of your car insurance.

Pay for your car insurance annually, not monthly

  • Check with your insurance company because sometimes you are charged interest if you pay by instalments.

Don’t pay for what you don’t need

  • Consider the cover you have under other insurance policies or elsewhere. For example, some bank accounts include car breakdown cover.
  • Sometimes your insurer or broker might try to sell you add-ons, like legal expenses cover. You might be able to get these products more cheaply elsewhere, or you might not need them at all.

Considering buying breakdown cover separately

  • If breakdown cover is included in your car insurance, check the price and the level of cover – you might find better cover for the same price or less elsewhere.

Protect or increase your no claims bonus

  • When changing insurers, make sure you can carry over your no-claims bonus.
  • Consider paying an extra premium to protect your no claims bonus, if you haven’t claimed for five years or more.

Think about adding a voluntary excess to your car insurance

  • Add a voluntary excess to your compulsory excess to lower your premium.
  • Remember you’ll get less back if you make a claim (after both voluntary and compulsory excesses have been deducted) so you need to be able to afford it.

Example

Imagine you reverse into a bollard and do £300 worth of damage to your car.

If your excess is £150, then your payout would be £150. But if you claim, you’ll lose your no claims bonus and push up the price of your premium.

Are you likely to claim?

If not, you might as well increase the excess (providing you can afford to) and pay less for the policy.

Also, remember that unfortunately, even if you don’t claim you do have to tell your insurer that you’ve had an accident and your premium might go up as a result.

3. Shop around

The more time and research you put in to obtaining quotes, the more likely you are to get a better deal.

This is especially important if you’re over 70 or under 25, and at the first year renewal when premiums can go up significantly.

If you have the time, get quotes from at least two comparison sites and use insurers and brokers that don’t feature on comparison sites.

Remember, cheapest is not necessarily best. Get the right cover or your policy will not pay out when you need it.

Compare like for like – if you’re only looking for fully comprehensive deals, you can use the Defaqto comparison system.

Try a broker to see if they can get the same cover at a lower price – it’s free to ask.

Don’t have much time?

Use best buy tables to compare policies from a few reputable insurers.

Under 25?

4. Check the policy

Read the Key Facts and Policy Wording documents.

Otherwise, you won’t know if you’re getting the right cover.

If you’re renewing a policy with the same insurer, it’s up to you to check if the terms and conditions have changed.

5. Ask for a discount

Go back to your current insurer and ask them to beat your best quote.

This article is provided by the Money Advice Service.

Some important information about Rest Less Money

We want you to understand the positives, but also the limitations of using our site. We operate in a journalistic manner and therefore all information, guidance or suggestions provided are intended to be general in nature, and you should not rely on any of the information on the site in connection with the making of any financial decision.

When we set out to build Rest Less Money, we wanted to be a trusted place where you could find helpful information about financial matters affecting the over 50s. As a free to use resource, we try hard to provide the best information we can, but we cannot guarantee that we won’t occasionally make mistakes. So please note that you use the information on our site at your own risk, and we can’t accept liability if things go wrong.

Key things to remember when using Rest Less Money:

We do not offer financial advice – As a journalistic site, it’s important to know that we do not provide financial advice. You should always do your own research before choosing any financial product so that you can be certain it is right for you and your specific circumstances. If you are in any doubt, please seek professional financial advice from a regulated financial advisor.

No Liability – please note that you use the information on Rest Less Money at your own risk and we can’t accept liability for how you choose to use the information given on our site. We will often provide links to content or products and services available on other third-party websites. These are provided purely for your convenience and we cannot be held responsible for any content, or any of the products and services offered on any website that we link to.

 

Accuracy of Information – We try to make sure that all the information provided on Rest Less Money is correct at the time of publishing as we want it to be the most helpful resource possible. Sadly, we are not perfect however, and so we can make no guarantees as to the completeness, accuracy, adequacy or suitability of the information available on the site.
Whilst we work hard to try and provide accurate information, deals and prices can change, so whilst they may be correct at the time of writing, providers may subsequently decide to alter them later – so always double check first.

A final note on the Rest Less Community Forums – always remember that anyone can post their opinion on the Rest Less Community Forums, so it can be very different from our own opinion and may not be factual or well researched. Always be wary of any content posted on the forums and be sure to do your own research and due diligence on anything suggested. 

We hope you find Rest Less Money a useful resource and we would welcome your feedback at [email protected] on how to make it even better. For more information on any of the above you can read our full terms and conditions.

Some important information about Rest Less Money

We want you to understand the positives, but also the limitations of using our site. We operate in a journalistic manner and therefore all information, guidance or suggestions provided are intended to be general in nature, and you should not rely on any of the information on the site in connection with the making of any financial decision.

When we set out to build Rest Less Money, we wanted to be a trusted place where you could find helpful information about financial matters affecting the over 50s. As a free to use resource, we try hard to provide the best information we can, but we cannot guarantee that we won’t occasionally make mistakes. So please note that you use the information on our site at your own risk, and we can’t accept liability if things go wrong.

Key things to remember when using Rest Less Money:

We do not offer financial advice – As a journalistic site, it’s important to know that we do not provide financial advice. You should always do your own research before choosing any financial product so that you can be certain it is right for you and your specific circumstances. If you are in any doubt, please seek professional financial advice from a regulated financial advisor.

No Liability – please note that you use the information on Rest Less Money at your own risk and we can’t accept liability for how you choose to use the information given on our site. We will often provide links to content or products and services available on other third-party websites. These are provided purely for your convenience and we cannot be held responsible for any content, or any of the products and services offered on any website that we link to.

 

Accuracy of Information – We try to make sure that all the information provided on Rest Less Money is correct at the time of publishing as we want it to be the most helpful resource possible. Sadly, we are not perfect however, and so we can make no guarantees as to the completeness, accuracy, adequacy or suitability of the information available on the site.
Whilst we work hard to try and provide accurate information, deals and prices can change, so whilst they may be correct at the time of writing, providers may subsequently decide to alter them later – so always double check first.

A final note on the Rest Less Community Forums – always remember that anyone can post their opinion on the Rest Less Community Forums, so it can be very different from our own opinion and may not be factual or well researched. Always be wary of any content posted on the forums and be sure to do your own research and due diligence on anything suggested. 

We hope you find Rest Less Money a useful resource and we would welcome your feedback at [email protected] on how to make it even better. For more information on any of the above you can read our full terms and conditions.

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