Saving on your car insurance can be exhaust-ing but there are ways you can drive down the cost and still get the right cover.
This guide explains the basics of car insurance, what to watch out for and reveals how you can slash the cost of cover in six easy steps. If you are under 25 check our Young Driver's Insurance guide for more.
Car insurance: The basics
At its most simple, car insurance covers you if your car is stolen or involved in a road accident. It also protects other road users if you cause damage to their vehicle and other property.
The cost of insurance - your premium - is based on how much of a risk insurers perceive you to be. For example, if you are a youngster ready to hit the highway after just passing your test, or you have had more than a prang or two, you will pay more for your cover.
However, if you can prove you are not a risk by storing your car safely, or you can keep accident-free, you will pay much less.
Quick questions:
Excesses: What are they and how do they impact my claim?
Not to be confused with living the high life during the festive period or a long afternoon at the local all-you-can-eat buffet, an excess - in the insurance sense - is the amount you pay towards any claims you make.
For example, if your excess is £250 and you had an accident that caused £1,000 worth of damage to your vehicle, you will pay £250 and the insurer will stump up the rest.
Be careful when deciding on your excess. The larger the excess the cheaper the premium, but a large excess may leave you out of pocket if you need to claim.
Third party, 'third party, fire and theft' and comprehensive: What is the difference?
As well as understanding excess, knowing the difference between the three main types of car insurance is a must:
1. Third party
Third party is the minimum level of cover you need to legally drive or even keep a vehicle that has not been SORN-ed (see Gov.uk for more). It can be the cheapest option but it covers very little, only
protecting others on the road, and property like walls, homes and streetlights, from your bad driving.
So, if an accident's your fault, third party pays for the damage you cause to another driver's vehicle and their property and protects any passengers. It will not cover you for any damage to your own vehicle so you will be expected to pay this cost yourself.
2. Third party, fire and theft
Third party, fire and theft is an extension of third party only insurance but it also protects your vehicle if it is stolen, or if it catches fire.
3. Comprehensive
Comprehensive is the widest level of cover available. If you have an accident and it was your fault you can claim the cost of repairing your car and any other damage you may cause to a third party. The cover also includes accidental damage, vandalism and usually the windscreen.
You may be able to drive other people's cars, although this is likely to only be up to the level of third-party coverage. You may also be covered to drive hire cars. These are not standard features so check with your insurer before you buy to make sure you are clear about what is included. (see does my policy cover me to drive other vehicles? for more).
Other vehicles: Does my policy cover me to drive them and can other people drive my car?
Obviously car insurance will cover you to drive your own vehicle but some comprehensive policies insure you if you are driving the cars of your friends and family - with their permission of course. You may also be covered to drive hire cars too. However, if your comprehensive cover allows you to drive other vehicles this is usually only up to the level of third-party coverage - so no theft or fire damage is provided.
If you are the generous sort, you can add other drivers to your policy - known as named drivers - and they'll be covered to drive your car.
Even if you are not the generous sort, adding a second responsible driver can also help lower the cost of your cover.
Applying for a quote: How honest do I have to be?
You have to be completely honest when you are applying for a car insurance quote.
Car insurance is expensive but no matter how tempted you are to say someone else is the main driver, or to pretend you have no points on your licence, never lie.
It can invalidate your insurance and can even lead to prosecution. However, being specific rather than vague about your job (some jobs are considered riskier than others) can help you cut costs. See our car insurance job picker for more.
No claims discounts: What are they and do they need to be protected?
As insurers like less risky policyholders, they will reward you if you are able to go a long time without making a claim. For every year you are claim-free your insurer may give you a discount at renewal.
The more years you can go without making a claim, the larger the discount will be at renewal. For instance, an insurer may give you a 30%-40% discount if you can go without claiming for the first year of your policy and then give you an extra 10% discount if you can repeat the trick in your second year.
You can also pay a small fee to protect your no-claims discount meaning you can retain your discount even if you claim. It is worth considering, especially if you have a history of making claims. However, an accident is still likely to see your premium rise, regardless of the impact of your discount.
Got a car but hardly drive it: Do I still need insurance?
Even if you are only driving your car every now and then it must be insured. The Continuous Insurance Enforcement scheme, which came into force in January 2011, means all cars must be insured - unless they are not in use and off the road. It aims to crack down on uninsured drivers by matching up the database of cars on the road with insured drivers.
The only way out is to apply for a Statutory Off Road Notification (SORN) declaring your car will never be driven. See Gov.uk for more.
Mileage: What impact does it have on my insurance?
The less you drive, the cheaper your insurance may be. Where possible, try to reduce your mileage. This may sound trite, but actually the real key is incorporating the extra insurance cost when you make long journeys, not just the cost of petrol compared to taking the bus or train (see the Cheap Trains guide).
Many simply get a quote for 10,000 miles per year, MoneySavers have reported that 5,000 is the cheapest quote - but we haven't tested this. If you use your car for business travel, always declare this rather than just including the business miles as personal trips, or the policy may be void.
Accidents: Do I need to tell my insurer if I have a prang but don't claim?
If you have an accident and damage someone else's car but decide to cover the costs yourself, strictly speaking you should still tell your insurer about it.
If you do have an accident and your insurer subsequently finds out about it, it could result in higher premiums regardless as the insurer will consider you more of a risk.
In addition, a problem may arise if you have a second accident and it is found to be related to work undertaken for the first. If this does happen it would most likely result in non-payment of the claim, rather than cancelling the insurance or being reported for fraud, but could still end up costing you £1,000s.
Change in circumstances; Do I need to notify my insurer?
If any of your circumstances change it is important that you tell your insurer.
If you don't and then try to claim, even for an unrelated issue, your whole policy may be invalid.
You should tell your insurer about any change, even if it's just your address. This is crucial as it reduces potential problems in the event of a claim. Trying to get insurance after you've had a policy cancelled is very difficult and expensive.
A change in circumstances includes moving jobs, as insurers believe this can affect your risk. You may also save on insurance if you're in a stable relationship - for instance, living with a partner rather than listed as single.
Young drivers: I'm under 25, is there a way I can cut my insurance premiums?
The cost of car insurance for under-25s is dropping fast but it's still eye-watering for some. The average price for a 17-22 year-old is £1,158. But there are many ways to help cut this cost, including getting specialist young drivers insurance. For more information see our Young Drivers Insurance guide.
Now you know the basics of car insurance, follow our step-by-step guide to slashing the cost of your premium, starting with 10 car cover need-to-knows.
Step 1: 10 car insurance cost-cutting need-to-knows
Did you know the average driver faces an annual insurance premium of £533, with drivers under the age of 25 paying more than £1000 for their cover? Here are our top ten car insurance cost-cutting tips that can save you £100s.
Don't assume third party is the cheapest
You might expect third party cover to be cheapest, but some insurers believe that people who choose third party cover are more of a risk and may price accordingly. Check both third party and comprehensive cover to make sure you are getting the best deal.
The proof: Forumite DobbieSloan says:
My auto renew quote was £210 for 3rd party only. I went to a comparison site and got comprehensive breakdown cover & free car hire with the same company for £40 less.DobbieSloan
Quick question:
Should I get third party or comprehensive cover?
Third party cover is generally most suitable for those:
Comprehensive is a good idea if your car is worth more than £1,500, and is more important the more valuable your car is. Many insurers will only offer comprehensive cover for cars over a certain value anyway.
-
Add a responsible second driver
Adding a second driver to the insurance, even if they won't use the car often, can smooth out the average risk and may reduce the premium. Those with a good driving record are likely to help make bigger savings, but anyone who's a lower risk can help.
The proof: @Faevouritexox says on Twitter:
As a young new driver my insurer wanted £5,000 but after adding mum and dad it dropped to £1,900.@Faevouritexox
More success stories
@mazzyb5 says on Twitter:
Took ur advice and added my mum to my car insurance and saved £500 #mumstheword@mazzyb5
@thenthornthing says on Twitter:
Car insurance renewal wanted £880, compared, got to £700 then added dad who occasionally drives car - dropped to £550! Result!@thenthornthing
Beware - At no point should you add your name as the main driver on someone else's car, such as one of your children, instead of them. This is known in the industry as 'fronting' and is fraud. When you come to claim, this will be checked out and your insurance will be invalidated. It can
lead to prosecution, so don't do it.
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Tweak your job description
Another quick win is tweaking your job description. 
To help, we've built a fun Car Insurance Job Picker tool to show the riskiest jobs and see if small tweaks to your job description could save you cash. Remember, never lie as this will be considered fraudulent. If it worked for you, share your success stories with our forum users.
The proof: @JenStaCreations says on Twitter:
Thank you @MartinSLewis after rewording my job occupation on car insurance I have managed to save £400.@JenStaCreations
More success stories
@fabsternation says on Twitter:
I did this too thanks to @MartinSLewis from creative director to marketing manager = saved £300+ Crazy world isn't it?@fabsternation
Forumite scalwal-photog says:
I'm a general photographer, and I discovered that the difference between describing yourself as a wedding photographer or studio photographer is up to £120!scalwal-photog
Quick question:
What if I am unemployed?
If you don't have a job, you face a potential five-fold jump in insurance costs by declaring you're unemployed. The same hikes don't apply to homemakers (housewives/househusbands). If that's you, say so to avoid a hike in costs.
However, only enter homemaker if you're genuinely not seeking work or receiving benefits which require you to seek work. Otherwise, it's fraud. Read the full MSE News story: Unemployed walloped with high insurance.
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Beware paying monthly
A monthly payment plan for your insurance is essentially a high-interest loan. For example, if your premium is £1,000 but you are paying an APR of 25%, your insurance will actually cost £1,140 once you factor in the interest. So either pay in full, or if you can't afford it, use a credit card with a lower APR rate (or better still, a 0% credit card for spending, ensuring your repayments are big enough to clear it within a year).
If paying by credit card, check if the insurer or provider charges a fee for doing so - though the fee is usually less than the interest charged on monthly instalments.
Find the APRs of the big insurers
| Insurer |
APR if you pay monthly |
Insurer |
APR if you pay monthly |
|---|
| Asda |
14.5% |
Hastings Direct |
29.9% |
|---|
| Aviva |
23.9% |
John Lewis |
23.5% |
|---|
| Axa |
36% |
M&S |
23.5% |
|---|
| Churchill |
24.1% |
Privilege |
29.4% |
|---|
| Co-operative |
18.5% |
Prudential |
24.1% |
|---|
| Endsleigh |
39.7% |
RAC |
29.9% |
|---|
| First Direct |
0% |
Sainsbury's |
24% |
|---|
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Never auto-renew. Loyalty is expensive
Nothing better illustrates car insurers preying on loyal customers than Sarah Cooper's tweet. "My car insurance renewal is £1,200. New policy with same company is £690. How do they justify this?" They don't. They just do it.
Insurers charge increasing amounts each year, knowing inertia will stop policyholders switching. If your renewal is coming up, jot it in your diary to remember it. Compare comparison sites and then call your insurer to see if they can match, or even beat, the best quote you found. If they can, you're quids in.
The proof: Forumite Zipman23 says:
I hadn't had any accidents or incidents yet my renewal went up almost £200. I left and went elsewhere for £70 less plus £60 cashback.Zipman23
More success stories
Rawhide says on the forum:
My auto-renew price for two vehicles including a 21-year-old named driver son on smaller vehicle was £1,024. I followed the advice given in the guide to get a better deal with Direct Line for £590.Rawhide
Forumite Farmerk2 says:
I have cover with LV= for many years and on checking they have always been the best deal. However even checking on their own site gave me a quote for £375 less than I had with auto-renewal.Farmerk2
Quick question:
What will insurers charge me to stay?
As well as insurers refusing to offer you the special rates that are available to new customers, there is often an administration fee charged for renewing your policy.
Here's a list of some of the policies which impose a renewal fee. If you know of any others, tell us so we can add them to this list of shame.
| Provider |
Renewal fee |
|---|
| 1st Central |
£50 |
|---|
| AQuote |
£50 |
|---|
| iKube |
£35 |
|---|
| Kwik-Fit |
£35 (if paying by monthly instalments) |
|---|
| American Express |
£25 |
|---|
| Auto Direct |
£25 |
|---|
| Donedeal |
£25 |
|---|
| Hastings Direct |
£20 |
|---|
| People's Choice |
|
|---|
Correct at June 2014
How can I haggle?
For more haggling tips, read the full Haggle On The High Street guide together with 2013's Top 10 Firms To Haggle With.
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Don't pimp your ride. Lock it down
For those over the age of 50, 'pimping your ride' involves decking it out with fancy alloys, windows and spoilers. The more changes you make to your car, barring security ones, the more you'll be charged. Always tell your insurer about any modifications, whether you made them or not, or it may invalidate your policy.
Even more savings are there for the taking if you can protect your vehicle by securing it.
Fitting an alarm or immobiliser (especially one approved by Thatcham) will reduce the bill substantially.
Quick question:
What counts as a modification?
A modification is anything that isn't part of the standard vehicle specification, including factory-fitted optional extras such as alloy wheels.
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Only buy add-ons if you know their value
Often when you buy your cover an insurer will try to sell you additional products such as windscreen cover or breakdown. Avoid buying add-ons if you are not clear what they do or what their terms are. Even if you are interested check out the cost of the cover individually first.
Many insurers make a large mark-up by selling add-ons at higher rates than you can get elsewhere. Also, some of these covers may already be included in your policy so read all the terms carefully.
Quick question:
What are the typical add-ons?
Windscreen cover
Windscreen cover may differ from provider to provider but, at its most basic, it pays out if your windscreen is damaged and needs to be repaired or replaced. Your windscreen is usually covered under your comprehensive car insurance policy but separate cover will pay to repair your windsreen without claiming on your car insurance. This means no excess and no impact on your no claims discount.
Legal expenses
This doesn't bear thinking about but say you've had an accident that also left you badly injured and you needed to claim damages for your ongoing medical costs. This cover will help you reclaim these costs from the insurer of the driver at fault, with the help of a legal team, so you are not out of pocket. It will also help recover your excess in the event of an accident where a third party was involved and can be traced.
Courtesy car
Courtesy car cover provides you with a replacement vehicle if you have an accident, or need to make a claim. There are different levels of courtesy car cover - some will only cover you if your car can be repaired, while others will cover for complete write offs, or if your car is stolen.
Breakdown cover
Breakdown cover varies but, at its most basic level, it ensures your vehicle can be recovered from the roadside and fixed on the spot (or taken to a local garage if it can't be repaired there and then). You can increase the cover to get assistance if your car is spluttering in the driveway or to get a hire car if you need a short-term replacement. For more info see our Cheap Breakdown Cover guide.
Excess insurance
As its name suggests, excess insurance is designed to provide the funds to pay your excess in the event of a claim. There are two types of excess insurance: the first, known as 'single cover', only covers one policy, while 'multi-cover' will insure excesses you have across a number of different policies.
Key cover
If you lose your car keys, key insurance can cover the cost of replacing both the key and the lock. Key cover typically comes without an excess and some policies can be extended to also cover members of your family.
-
Set the right excess without breaking the bank
It's worth considering going for a policy with a higher excess. A higher excess will result in lower premiums but make sure you can afford the premium in the event you need to claim. Many people will find claiming for less than £500 of damage both increases the future cost of insurance and can invalidate no-claims bonuses, meaning it's not always worth making a claim.
So why pay extra for a lower excess? A few insurers will substantially reduce premiums for a £1,000 excess, so try this when getting quotes. The downside of this is if you have a bigger claim you'll have to shell out more, so take this into account.
-
Lock in quotes early
Some insurers will hold the price of a quote for up to 60 days. This means that if you obtain a quote two months before your renewal is due, you've locked in the price to beat any possible future premium increases.
Aviva and Post Office* will hold prices for 60 days, while Direct Line* give quotes valid for 30 days. Remember, the prices are fixed subject to you not changing any of your details.
Set
up a Tart Alert to remind you when it's going to expire.
-
Remember next year
Providing you drive well and don't have any accidents, your insurance premium should get cheaper after the first year. However, don't automatically stick with the same provider.
Apply for cover from your existing insurer as a new customer and it's likely you'll be given a cheaper price.
Quick question:
Will my insurer remind me when it's time to renew?
Insurers usually send out notifications at least 21 days before renewal. This doesn't leave much time, and you can end up rushing to find a cheaper price.
To avoid being forced to decide quickly, put a warning in your diary six weeks before your renewal date, so there's plenty of time to sort out a new provider. Alternatively, use the free Tart Alert which sends a reminder text or email.
Step 2: The top comparison sites
Once you know the basics at the top ten tips for cutting costs, it is time to visit the comparison site to get quotes.
Below we explain the way comparison sites work and how we pick our order. If you are a typical driver and you know about our methodology here is the order in a nutshell: MoneySupermarket*, GoCompare*, Confused* then Compare the Market*.
There is no one comparison site which, used on its own, will always save consumers the most money. As no single site captures the entire market, combining a number of sites is the best way to make a really meaningful saving.
Comparison sites zip your details to a number of insurers' and brokers' websites to find the cheapest quotes. They don't all compare the same sites, so it is best to combine them. We've analysed the comparison sites to find the ones that produce the cheapest quotes.
We've also conducted separate research to see if quotes from comparisons match up to the prices on insurers' own websites, how easy it is to use the sites, and the speed at which the sites deliver results. (See how the order is picked.)
The order below is for typical drivers, see the tabs below if the combination of comparison sites are unable to save you £100s.
Quick question:
Comparison sites: Should I be worried about the security of my data?
There are not usually any issues with the security of the data held on price comparison sites but in December 2013 Compare the Market was forced to review its systems after an investigation revealed a lack of a password-protection which meant personal data including address, value of home contents and marital status were all at risk of being hacked. Read more in our news story.
Typical driver
- Price for add-ons clearly displayed? Yes
- Prices match insurer's site more than 80% of the time
- Received marketing calls when we asked for none? Yes
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
- Received marketing calls when we asked for none? No
- Prices match insurer's site more than 90% of the time
- Price for add-ons clearly displayed? No
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
- Price for add-ons clearly displayed? Yes
- Received marketing calls when we asked for none? No
- Prices match insurer's site more than 80% of the time
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
Compare more comparison sites
- Price for add-ons clearly displayed? Yes
- Prices match insurer's site more than 90% of the time
- Received marketing calls when we asked for none? Yes
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
5. Boost chances to nearly 100%
Try to really nail down all the quotes
If you still haven't found a deal you're happy with, or want to push the envelope, there are some more options to try.
Try these comparison sites if you have time - each takes around 5-10 minutes: Tesco Compare*, Google*, QuoteZone*.
Open all typical driver insurance top picks
Typical driver insurance
- Price for add-ons clearly displayed? Yes
- Prices match insurer's site more than 80% of the time
- Received marketing calls when we asked for none? Yes
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
- Received marketing calls when we asked for none? No
- Prices match insurer's site more than 90% of the time
- Price for add-ons clearly displayed? No
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
- Price for add-ons clearly displayed? Yes
- Received marketing calls when we asked for none? No
- Prices match insurer's site more than 80% of the time
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
Compare more comparison sites
- Price for add-ons clearly displayed? Yes
- Prices match insurer's site more than 90% of the time
- Received marketing calls when we asked for none? Yes
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
5. Boost chances to nearly 100%
Try to really nail down all the quotes
If you still haven't found a deal you're happy with, or want to push the envelope, there are some more options to try.
Try these comparison sites if you have time - each takes around 5-10 minutes: Tesco Compare*, Google*, QuoteZone*.
Temporary car insurance
Borrowing a friend's car for the weekend or need to hire a vehicle to move house? It's possible to get temporary insurance for one to 28 days.
Most insurers will cover drivers between the ages of 18 and 75 but some set the minimum age at 21. You may also find it difficult to find cover if you have many points on your licence or a long history of claims.
Insure Daily*, Tempcover.com*, Confused.com* and the RAC offer policies.
- Price for add-ons clearly displayed? Yes
- Prices match insurer's site more than 80% of the time
- Received marketing calls when we asked for none? Yes
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
- Received marketing calls when we asked for none? No
- Prices match insurer's site more than 90% of the time
- Price for add-ons clearly displayed? No
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
- Price for add-ons clearly displayed? Yes
- Received marketing calls when we asked for none? No
- Prices match insurer's site more than 80% of the time
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
Compare more comparison sites
- Price for add-ons clearly displayed? Yes
- Prices match insurer's site more than 90% of the time
- Received marketing calls when we asked for none? Yes
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
5. Boost chances to nearly 100%
Try to really nail down all the quotes
If you still haven't found a deal you're happy with, or want to push the envelope, there are some more options to try.
Try these comparison sites if you have time - each takes around 5-10 minutes: Tesco Compare*, Google*, QuoteZone*.
Open all multiple car insurance insurance top picks
Multiple car insurance
First check comparison sites for each car individually to find out the separate rates. Then try the insurers below that offer you discounts for insuring multiple cars with them. Remember, a multi-car insurer is not always the cheapest so try both before you buy.
The proof: Sometimes it works! Forumite BoredwithbeingIgnored says: "Admiral offered us a multi-car policy and our insurance dropped to £500."
...and sometimes it doesnt! Forumite thrifteemee adds: "We managed to save over £200 this year. Renewal quote from Admiral for 2 cars = £575. Privilege 1 car = £190, M&S 1 car = £160, Total = £350"
- Price for add-ons clearly displayed? Yes
- Prices match insurer's site more than 80% of the time
- Received marketing calls when we asked for none? Yes
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
- Received marketing calls when we asked for none? No
- Prices match insurer's site more than 90% of the time
- Price for add-ons clearly displayed? No
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
- Price for add-ons clearly displayed? Yes
- Received marketing calls when we asked for none? No
- Prices match insurer's site more than 80% of the time
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
Compare more comparison sites
- Price for add-ons clearly displayed? Yes
- Prices match insurer's site more than 90% of the time
- Received marketing calls when we asked for none? Yes
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
5. Boost chances to nearly 100%
Try to really nail down all the quotes
If you still haven't found a deal you're happy with, or want to push the envelope, there are some more options to try.
Try these comparison sites if you have time - each takes around 5-10 minutes: Tesco Compare*, Google*, QuoteZone*.
Add the total up and then try the following insurers that give you a discount for taking out multiple policies.
Admiral MultiCar insuranceGet up to 25% discount
With Admiral* MultiCar, you buy one policy and it covers up to five different cars.
Usually, all the cars need to be registered at the same address though exceptions can apply (such as students who live away).
The discount increases depending on how many cars you want cover for, ranging from 12% for two cars to 25% for five cars.
We have included additional providers who also give a multi-vehicle discount.
The discounts with Churchill*, Direct Line* and Privilege* do vary as they depend on your circumstances but are worth adding to your list to try.
Open all company car insurance insurance top picks
Company car insurance
Comparison sites always assume you own the car you're trying to insure. However, many people drive a car owned by their employer, but have to insure and tax it themselves.
This means comparison sites, while useful for benchmarking, don't do the trick here. First, try a couple of specialists, then see how prices from the comparisons stack up.
LV*Online quotes for company-owned cars
The only insurer we could find which gives quotes online for vehicles owned by companies is LV*.
Go through the quote process and it'll ask who owns the car. Then the quote you get will be based on this. This by no means translates to LV being the cheapest choice - but it's very useful to get an idea of what you should be paying.
Specialist brokers and insurersTime for phone-based legwork
This is a good time to look to the old-fashioned, pre-online comparison route - insurance brokers. They can only look at a smaller range of insurers, but they can also dig into the detail, and tell you if a policy covers company cars.
It's worth phoning up as many of the following as you can. It's free to talk them but they're paid via commission. Try Adrian Flux, Alan Boswell, Giles Insurance, Endsleigh*, Swinton* and Footman James.
To further hone the price you can, hit the phone again and talk to these insurers: AA*, Admiral*, Churchill*, Diamond and Direct Line*.
Combine comparison sites
Remember, comparisons don't all compare the same sites, so the best strategy's to combine them. We've analysed them, using a large range of monthly data, primarily focused on which ones produce the cheapest results.
We also factored in separate research on the accuracy and quality of the comparisons. (See how the order is picked.)
- Price for add-ons clearly displayed? Yes
- Prices match insurer's site more than 80% of the time
- Received marketing calls when we asked for none? Yes
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
- Received marketing calls when we asked for none? No
- Prices match insurer's site more than 90% of the time
- Price for add-ons clearly displayed? No
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
- Price for add-ons clearly displayed? Yes
- Received marketing calls when we asked for none? No
- Prices match insurer's site more than 80% of the time
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
Compare more comparison sites
- Price for add-ons clearly displayed? Yes
- Prices match insurer's site more than 90% of the time
- Received marketing calls when we asked for none? Yes
- Excesses match what was asked for? No
- Tick-box for marketing calls? Opt-out
Feedback
5. Boost chances to nearly 100%
Try to really nail down all the quotes
If you still haven't found a deal you're happy with, or want to push the envelope, there are some more options to try.
Try these comparison sites if you have time - each takes around 5-10 minutes: Tesco Compare*, Google*, QuoteZone*.
I'm struggling to get cover
If you have a number of points on your licence or you have made many claims before you may find it hard to get cover.
If you've been caught once for an offence such as speeding, it's likely you'll have three penalty points on your driving licence. However, one strike doesn't change your risk profile. It's when you reach four points or more that you should change the way you act.
First click on 'typical driver' and compare the comparison sites listed. If you think you can find cover cheaper elsewhere consider enlisting the help of a broker (search on the British Insurance Brokers' Association website to find someone local)
If you have claimed in the past and this is affecting your premiums' consider protecting your no-claims discount (see should I protect my no-claims discount? for more).
You may even be able to fast-track your no-claims bonus. The Admiral* Bonus Accelerator policy gives you one year's no-claims bonus after just 10 months of being insured. This can speed up how quickly you hit the big discount territory.
However, always choose based on the price you pay now. Factoring in a slightly higher premium today for a reduced one in future is fine - but don't pay way over the odds, as the benefits in years ahead aren't guaranteed.
Even if you don't claim to keep your no-claims discount, the price of a policy can rise simply because you may be assessed as a higher risk in the future.
Consider telematics
Despite some confusion, telematics is not an 1980s
games show hosted by Noel Edmonds (that was Telly Addicts!). Telematics prices your premiums dep
ending on how you drive.
A device inside your car monitors your actions behind the wheel. So the better youre driving, the less you pay for cover. Remember, telematics policies have more aliases than a rap group. If you're looking at 'black box', 'smart box', 'pay-as-you-drive' or 'usage-based' insurance then you're looking at a telematics policy.
It works! Forumite vic.star says: "I'm with Insure The Box - a telematics insurer. I paid £980 for my first year (I was 21 when I took out the policy) compared to the cheapest on comparison sites of £1,400!"
The black box feeds data back to your insurer, which takes this into account to reward you. If you can prove you're more Driving Miss Daisy than Fast & Furious you can get money back on your premiums, high street shopping vouchers or better prices at renewal. Full info:
How do they judge you?
Its not just a case of keeping your hands at ten and two and shifting smoothly up the gears. Insurers will take the following into account.
- The time of day or night you drive (11pm to 5am may cost more).
- Your speed (stick to the limit).
- Gentle braking reactions (hard and sharp stopping is not good).
- Gentle acceleration and cornering is good (don't treat your local roads like Silverstone).
Telematics providers will charge you more if you speed or start cornering like Lewis Hamilton. In addition, you won't earn rewards if you don't drive responsibly. With insurance so expensive, any money back on your cover should be an incentive in itself.
While your insurer will be following your driving closely, there are relatively few restrictions on when and where you drive.
Some insurers, such as iKube* and Co-op*, have curfews in place, meaning driving at certain times (usually between 11pm and 5am) could result in a fine or an increase in premiums.
Step 3: The big 'uns and hot deals comparisons miss
Comparison sites let you compare 100s of insurers in quick time but they don't include everybody. Some insurers that are on comparison sites, have promo deals that aren't so we list them below.
New customers buying an Aviva* car insurance policy before Mon 30 June using the code AVIVAMSE60 will receive a £60 Amazon gift certificate. The certificate will be sent within 60 days of your policy start date.
Buy a new car insurance policy from Hastings Direct* by 30 November and receive a £25 Amazon gift certificate. The certificate will be sent within 60 days of your policy start date.
Buy a Sainsbury's* motor policy and you'll get free breakdown cover for the first year. Offer ends 28 July. Nectar cardholders who buy a comprehensive policy also get up to a third off and double Nectar points for two years on shopping and fuel.
Buy a motor policy via the AA* and you'll get free breakdown cover for the first year if you're a new customer.
Insurance broker Be Wiser offers free RAC membership and Legal Expenses cover for policies bought via its website.
Direct Line* is not available on comparison sites and one to add to the list to check as part of the process. Also see Direct Line Together* for details on getting 10% off every car, or any other Direct Line product, in your household.
Like Direct Line and Aviva, Zurich is not on comparison sites and should also be checked before you buy.
Step 4: Haggling
Haggling is not a must - especially if you want to try a new provider - but if you are looking to renew with your current insurer it is well worth getting on the phone to negotiate.
Once you've followed the steps above and got the overall cheapest price, get on the phone and haggle. If your insurer can beat or match your best quote it saves the hassle of switching policy. If that doesn't work and you're still in the mood, enlist the help of a broker.
The proof: Forumite Jibbyboo says: "I just saved around £300 haggling with Admiral (prompted after the news article on MSE). And they were really friendly to boot."
For more haggling tips, read the full Haggle On The High Street guide together with 2013's Top 10 Firms To Haggle With.
Step 5: Cashback
Once you know who your cheapest provider is, you need to check there aren't any hidden cashback deals, as these can be as high as £60.
If your second or third cheapest quotes weren't too much more expensive, see if cashback's available for them too, and find the overall winner.
It's important to be aware that the cashback is coming from the comparison site, not the insurer, so getting the cashback relies on its ability to pay.
Things you need to know before getting cashback...
Never count the cash as yours until it's in your bank account
Cashback is never 100% guaranteed. There can be issues with tracking and allocating the payment. Many cashback sites are small firms with limited backing, and you've no protection if anything happens to them.
Withdraw the cashback as soon as you're allowed
Money held in your cashback site account has no protection at all if that company goes bust. Always withdraw it as soon as you're eligible.
Clear your cookies
While it shouldn't be a problem, if you've used comparison sites before, there is a minor risk that the cashback may not track due to cookies on your computer - so it's good practice to clear those first (read About Cookies).
If you're new to cashback sites, make sure you read the Top Cashback Sites guide for pros and cons before using them. Otherwise, use the Cashback Sites Maximiser tool to find the highest payer for each insurer.
If cashback sites don't list your insurer, try using comparison site MoneyExpert, which pays £25 if you compare then get a policy via its site. The cashback must be claimed within 30 days after the policy starts.
The policyholder must claim it from MoneyExpert (not MoneySavingExpert) using its cashback claim form. This isn't available if you're in Northern Ireland or the Channel Islands. Read the full T&Cs within the 'How do I claim my cash back?' section as the process isn't that straightforward, nor is it without potential pitfalls.
If you have any problems getting the cashback, email carinsurance@moneyexpert.com or phone 0800 011 1395 (select option 2 for customer services).
Step 6: Check your policy
Always double-check the policy terms. Once you've found the cheapest quotes make two important checks.
Double-check the quotes. Click through to the insurance provider's own website to double-check the quotes, as to speed up searches some comparison sites make a few assumptions (see what to check).
Examine the policy's coverage. Check whether it's suitable. If you want free car hire if your car is being fixed, is it included? While you're there, it's worth playing with the policy details to see if you can lower the price further. Look at the excess, and whether adding drivers cuts the cost.
This tool from Find allows you to check two different policies, side by side.
So how much can you save?
Following the steps above often produces huge savings. Those who normally just accept their insurers' renewal regularly see £100s shaved off the cost. And significant numbers of MoneySavers report getting deals for under £100.
Barbara's story: 96p for a year's fully comprehensive cover
In October 2009, civil servant and grandmother Barbara Wakerell smashed the old £14 record for using this car insurance system (see MSE News: 96p car insurance).
Policy price: For Barbara, the cheapest was £120.96 from Swinton Insurance for a fully comprehensive policy, with protected no claims bonus, and including a courtesy car.
Insurer cashback: The company had its own £70 cashback promo on.
Cashback site: She then got a further £50 via using a cashback site.
Meet the man who cut his cover to just £26 a year
All added together, that meant the total cost of the insurance was just 96p. She said:
I'm always looking for a bargain so when I found my car insurance for £120.96 I thought I was doing well. But when I also got £120 cashback I realised I had done really, really well. Can anyone beat that? Barbara Wakerell
Courtesy of Channel 5. Originally from It Pays To Watch!
Have you used this guide's techniques to save? If so, please tell us in the Car Insurance Super Deals forum discussion.
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