Best Ways to Get Cheaper Car Insurance in the UK

Finding affordable car insurance without compromising coverage is key. In this guide, we’ll share the best ways to get cheaper car insurance in the UK in 2025, helping you save money while staying protected on the road.

1. Shop Around for Quotes

Comparing quotes from multiple insurers is one of the most effective ways to reduce car insurance costs. Rates can vary widely, even for identical coverage. Use comparison websites like Compare the Market, MoneySuperMarket, or GoCompare to get quotes from several providers. Alternatively, contact insurers directly for tailored offers.

Pro Tip: At OurCar, we suggest checking both well-known insurers and smaller, providers, as they may offer competitive rates for local drivers.

2. Consider Multi-Car or Multi-Policy Discounts

If your household has more than one car, a multi-car insurance policy could save you money. Many UK insurers also offer discounts for bundling car insurance with other products, such as home or breakdown cover, with potential savings of 10%–20%.

Why It Works: Insurers reward customer loyalty with bundled or multi-car discounts. Ask your provider about these options or explore new insurers offering such deals.

3. Opt for a Higher Excess

Increasing your voluntary excess—the amount you pay towards a claim before insurance covers the rest—can lower your premiums. For example, raising your excess from £200 to £500 might reduce your annual premium significantly. However, ensure you can afford the higher excess if you need to make a claim.

OurCar Advice: Choose a higher excess only if you have savings for unexpected costs. This approach suits confident drivers with a low claim risk.

4. Maximise Available Discounts

Insurers offer various discounts that can cut your premium. Common ones include:

• No-Claims Discount (NCD): Build up your NCD by driving claim-free for years—some insurers offer up to 70% off for five or more years.
• Advanced Driving Course Discount: Completing a course like Pass Plus or IAM RoadSmart can lower premiums, especially for younger drivers.
• Low-Mileage Discount: Ideal for drivers covering fewer than 7,000 miles annually.
• Telematics/Black Box Discount: Installing a telematics device to monitor driving habits can lead to savings for safe drivers.
• Security Features Discount: Cars with Thatcham-approved alarms, immobilisers, or trackers may qualify for lower rates.

Action Step: Contact your insurer to check eligibility for discounts. At OurCar, we can recommend vehicles with security features that help reduce insurance costs.

5. Choose a Car in a Lower Insurance Group

In the UK, cars are assigned to insurance groups (1–50), with lower groups being cheaper to insure. Vehicles with smaller engines, good safety ratings, and low repair costs—like the Ford Fiesta, Volkswagen Polo, or Vauxhall Corsa—typically fall into lower groups.

OurCar Tip: Visit us to explore models in lower insurance groups that suit your budget and driving needs.

6. Pay Annually Instead of Monthly

Paying your insurance premium in full upfront avoids monthly instalment fees, which can add £30–£50 to your annual cost. If paying annually isn’t possible, ask about low-cost payment plans or set up direct debits, which some insurers reward with small discounts.

Budget-Friendly Option: Compare the total cost of monthly versus annual payments to find the best deal.

7. Consider Telematics Insurance

Telematics or “black box” insurance is ideal for young or low-mileage drivers. These policies track your driving behaviour (e.g., speed, braking, and time of day) via a device or app, rewarding safe habits with lower premiums.

Is It Right for You?: If you drive carefully and avoid peak traffic times, telematics could save you significantly. Popular UK providers include Ingenie and Marmalade.

8. Park Securely to Reduce Premiums

Where you park your car affects your insurance costs. Parking in a garage, driveway, or secure car park overnight can lower your premium compared to street parking, as it reduces the risk of theft or vandalism.

OurCar Advice: When choosing a car, consider its size and parking requirements to ensure you can store it securely.

9. Review and Adjust Your Coverage

Review your policy annually to ensure it matches your needs. For example, if your car is older, you might not need comprehensive cover and could opt for third-party, fire, and theft (TPFT) instead. Avoid over-insuring by removing unnecessary extras, like courtesy car cover, if you don’t need them.

Action Step: Speak to your insurer or an independent broker to tailor your policy, especially after life changes like moving or paying off your car.

10. Maintain a Good Driving Record

A clean driving licence with no points or claims keeps your premiums low. Avoid speeding tickets and accidents to protect your no-claims discount and maintain a good risk profile with insurers.

Bonus: Consider a defensive driving course to improve your skills and potentially qualify for additional discounts.

Conclusion

Securing cheaper car insurance in the UK is achievable with the right strategies. By comparing quotes, choosing a car in a lower insurance group, and taking advantage of discounts, you can save hundreds of pounds annually. At OurCar, we’re here to help you find vehicles that keep both your purchase and insurance costs down.

Disclaimer: Insurance rates and discounts vary by provider, location, and individual circumstances. Always consult your insurer or a qualified broker for personalised advice.