How to save money on your car insurance

In my last post I wrote about how I saved £129 on my car insurance. If you do a bit of homework, you can save money too. Here are my tips to ensure you get a better deal.

Never let your insurance carry over automatically

Many people let their car insurance carry over for another year because it is less fuss. We don’t. You’re being robbed in broad day light. The reminder you get on email or through the post will ALWAYS be higher than what you should be paying. Why? Because they hope you will just let it carry over so they make more money from you. This year the price on my renewal letter was £362. After 30 minutes homework I got it down to £302.
However, don’t call your current provider straight away though; do your homework first.

Shop around

Always shop around for a better deal. Using comparison sites such as and are easy tools to see lots of quotes at once. Some providers, such as Direct Line and Admiral don’t work with comparison sites so call them directly or visit their websites.

Only use one comparison site

Have you ever got quotes from a comparison site, tried a different comparison sites and found the prices get higher? I have a pretty much proven theory. It’s because all comparison sites use the same database and you have logged all your details with them. Each time you try to get more quotes the price from each insurer will just go up and up; presumable because the site hopes to get more money from you. I found this out when I spoke to an insurer on the phone and they told me it doesn’t matter which comparison site you use, they all use the same database system. Luckily, your quotes are normally saved for 7 days so you can go back to the original comparison site you used to retrieve a quote.

Multi-car insurance

If you have one or more cars insured at your home it is worth getting a quote for a multi-car policy. Direct Line and Admiral are two providers who offer this service. You will be asked details for both cars and both drivers and the quote will show a price to cover your car for 12 months and the second car for the duration between their previous insurance lapsing and your car’s renewal date.

Lose your pride, get a cheap car

Ok, this one is a bit obvious but it has to be told; a car with a smaller engine and sometime older cars are cheaper to insure. I have a 2002 Renault Kangoo. It’s a diesel and does around 44mpg. I love my car because it has so much space inside, is cheap to run, cheap to fix and cheap to insure at £302 a year. Before this car I had a 2000 Micra. It was dirt cheap to run, never let me down and I stood out a mile in the work car park full of fancy Audis and BMWs. So what? It cost me less to run in a year than some friends pay for 2 months on their car loan!

Don’t pimp your ride

Any modifications to your car has MUST be given when getting insurance. This is where many boy racers fall. They get an offensive body kit for their Peugeot 206 then crash it while racing in Tesco’s car park then find out their insurance is invalid when they call to claim. Lowered cars and body kits will drive up the price of your insurance.

Now call your current insurer

Call your current insurer and tell them your new quotes. Every time I have done this they have managed to knock my renewal price down. If the price they come back with isn’t good enough, tell them. They will put you on hold again and come back with a better price. I do this every time. They will always go away and come back with a better price at least twice (in my experience).

Pay upfront

Paying monthly for your insurance can seem tempting but it will cost you more money. You will be charged interest if you pay monthly, typically around 24%. For some, spreading the cost is necessary but if you have the capital it is worth paying it all in one go. I saved £60 this year by paying upfront. In most cases you will still save money if you pay on your credit card and pay the amount off over three months. If, for any reason, you cancel your policy, you are more likely to get some money back if you paid upfront.

I hope these tips are useful if you aren’t aware of them already and for those who are it’s a reminder to make more effort to spend time doing your homework to save money next time your insurance is due for renewal!

P.S. Do you have any tips for saving 
money on car insurance? 

By Jenni Tulip

I'm a bright-haired, hill walking, magpie whispering, skull collecting, tree hugging, money saving, bird watching, happy campervanning, ferret fanatic, woodland dweller sharing my stories and passion for the outdoors to inspire you to immerse yourself in nature.

  • I refuse point blank to return to an insurer who's tried to have me over with an inflated renewal quote – I wouldn't accept the people I work for paying me £150 short just because they thought they might get away with it, and similarly I have better things to do with my time than getting into dutch auctions with unscrupulous insurers. Instead I shop around in good time, always checking whether I can get cashback by doing a comparison site visit via TCB or similar, then take out the best value policy, and ring to cancel the renewal on the previous one. I take great pleasure in telling them that no, I don't want them to "see what they can do to make it cheaper" thank you, the time to do that was when they sent the renewal quote out!

    Something else to bear in mind is to work out how much running your car actually costs you over a year – so tax, insurance, MoT, servicing, and some for depreciation, and divide that figure by 12. Then start to put away that amount each month into a separate savings account, that way, when the big annual expenses come up, the money is already there and waiting.

  • Hi Robyn.

    I hate they way they work it's so cheeky isn't it! Thank you for your suggestion of working out the annual running costs of your car. Up until recently I have paid for whatever as I go along, mostly because my car is rather cheap to run. D has always had a separate bank account for his car where he does exactly what you suggest. I too have set up a separate account especially for my car now. It is likely that we will soon have a joint budget for cars as we use them equally.

    Jenni x