How to save on car insurance: 12 simple ways to cut costs

Looking to save on car insurance? Here are some simple tips to lower your premium and avoid overpaying.

Feeling the pinch every time your car insurance renews?

Like just about everything else these days, car insurance costs are on the rise. Higher repair bills, increasing claims, and rising day-to-day motoring costs have all pushed premiums upwards, leaving many drivers shocked by how much their renewal prices have jumped.

The good news is that you don’t have to settle for sky-high prices.

Whether you’re a brand-new driver or you’ve been behind the wheel for years, there are still plenty of practical ways to cut costs without sacrificing the cover you actually need.

From small policy tweaks to smarter shopping habits, here are 12 ways to help you save money while staying fully protected on the road. (And remember: never lie to lower your quote, because that can get you in a lot of trouble indeed.)

Remember, you can buy a brand new or used car right here on Carwow. And you can sell your car, too. We’re here to help you through every step of your car-changing journey.

1. Increase your voluntary excess

Your voluntary excess is the amount you agree to pay towards a claim. Generally, the higher your excess, the lower your monthly premium.

Just make sure the amount is realistic. There’s no point saving £10 a month if you can’t afford the excess when you need to claim.

2. Keep your annual mileage accurate

The more miles you drive, the higher your insurance risk appears to insurers.

If you can reduce your yearly mileage – by walking more, car-sharing, or working from home – you could lower your premium. Just remember: always be honest about your mileage estimate.

3. Improve your car’s security

Adding extra security features can make your vehicle less attractive to thieves and could help reduce your insurance costs.

Consider installing devices such as alarms, immobilisers, steering wheel locks, and GPS trackers.

Always let your insurer know about any security upgrades.

4. Take an advance driving course

Completing an advanced driving course, such as the Plus Pass Scheme, may help demonstrate that you’re a safer driver.

While discounts aren’t guaranteed, some insurers may offer reduced premiums for drivers who’ve completed additional training.

5. Consider black box insurance

Telematics or “black box” insurance monitors your driving habits, including speed, braking, cornering, mileage, and driving times.

If you drive safely, insurers may reward you with lower premiums – especially useful for younger or newly qualified drivers.

6. Think carefully about car modifications

Not all modifications are insurance-friendly.

Performance upgrades such as alloy wheels, exhaust systems, tinted windows, or engine enhancements can increase your premium because they may raise the risk of theft or accidents.

Before making modifications, check with your insurer first.

7. Build up your no-claims discount

A no-claims discount (NCD) rewards drivers who avoid making claims over time.

The longer you go claim-free, the bigger the discount can become – potentially saving hundreds of pounds each year.

Some insurers also offer NCD protection as an optional extra.

8. Choose your job title carefully

Believe it or not, your occupation can impact your insurance premium.

Some job titles are considered lower risk than others. For example, a “chef” might receive a different quote than a “kitchen manager,” even if the roles are similar.

Always be truthful, but choose the most accurate description available.

9. Pay annually instead of monthly

Monthly insurance payments often include interest charges – sometimes as high as 20-35%.

Paying annually can work out significantly cheaper overall and help you avoid extra finance costs.

For example, an annual premium of £500 could cost £600 in total if paid monthly with 20% interest. That’s an extra £100 a year simply for spreading the cost.

10. Bundle multiple policies together

If you already have home, life, or pet insurance, check whether your provider offers multi-policy discounts.

Bundling policies with one insurer can sometimes reduce your overall insurance costs and simplify your paperwork too.

11. Review your policy add-ons

Many drivers pay for extras they no longer need.

Take a close look at your policy and remove unnecessary add-ons such as:

• European cover
• Courtesy car upgrades
• Legal protection
• Breakdown extras you already have elsewhere

A quick review could shave money off your renewal quote.

12. Shop around and compare quotes

Never auto-renew without comparing prices first.

Different insurers assess risk differently, so shopping around could uncover substantial savings. Insurance brokers and comparison sites can also help you find competitive deals tailored to your needs.

Car insurance may be getting more expensive, but smart drivers still have plenty of ways to reduce costs. From driving fewer miles to reviewing your cover regularly, small changes can add up to meaningful savings over time.

The key is to stay informed, compare options carefully, and make sure your policy genuinely matches your needs – not just your renewal notice.

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

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