How to lower your car insurance premiums

Owning a car doesn’t come cheap, from fuel, maintenance and servicing, it’s easy for costs to spiral. The good news is that while you might not be able to control what you pay for petrol and diesel, you can save money on your car insurance — here’s how.

Compare all types of policy

Third party only is the minimal level of cover you need by law but that doesn’t mean it’s the cheapest option. As contradictory as it might seem, comprehensive cover which is the highest level of insurance you can buy, often costs a lot less.

That’s because figures show third party policyholders tend to make more claims. This increased risk is then reflected in the premium. You can also save money by opting for a telematics policy — these monitor your driving using a device fitted to your car. If your driving is consistently good (based on things like acceleration, speed, cornering and braking) you could see premiums fall faster compared to other policy types.

Build up your no claims bonus

Every year you drive without making a claim earns you a no claims bonus (NCB) which is a discount taken off your premium at renewal. The more years of no claims you have, the bigger the discount — which could be as much as 75%.

Unless you protect your NCB, your discount will be reduced if you make a claim. That’s not to say you shouldn’t ever claim, but think carefully before claiming for minor repairs which you could otherwise cover yourself.

Add a named driver

If you’re a young driver or have just recently passed your test, adding a more experienced driver to your policy can help. This is because it’s assumed you won’t be spending as much time behind the wheel compared to if it was just you on the policy.

However, be careful you don’t fall into the fronting trap. Fronting is when you say someone is the main driver (instead of a named driver) with the intention of getting cheaper car insurance. It might seem like a tiny white lie but it’s actually a type of insurance fraud and in the worst case scenario, it could mean you end up in court.

Choose a car in a low insurance group

All cars made for the UK market fall into one of 50 insurance groups. As a general rule of thumb, smaller cars in low group numbers are cheaper to insure. This is mainly because they cost less to repair or replace. So, if you’re in the process of buying a new car and weighing up ongoing costs, it’s a good idea to check the insurance group as it could help you save significant amounts of money.

If you can, try to avoid cars that have been modified — in other words, cars that have been altered since they left the factory. Modifications make a car unique which can make them more expensive to fix or replace, in turn increasing your premium.

The only exception is if you modify your car by adding a Thatcham approved security alarm which makes your car harder to steal.

Try varying your job description

Some jobs attract lower premiums so when you’re asked about what you do for a living, compare quotes by varying your job title. Needless to say, whatever description you choose should still accurately reflect what you do (for example, journalist/writer, teacher/headteacher).

Conjuring up an entirely new career for yourself just to get cheaper car cover simply invalidates the insurance you have. Your insurer is also likely to cancel your policy which can make it considerably harder to find car insurance in the future. 

Check all the details you give

Like a lot of things in life, the devil is often in the detail and car insurance is no different so pay close attention to:

• Mileage — be as accurate as you can because overestimating the miles you cover can mean you end up paying more than you need.
• Class of use — this is how insurers describe the activities you use your car for (for example, social only, social and commuting, or business use). Check you have the right class of use for what you need otherwise it could mean you’re paying extra for elements you don’t need.
• Auto renew options — some insurers will automatically renew your policy but while it’s convenient, it doesn’t mean you’ll get the best deal so always compare quotes instead of auto renewing.

Car insurance  you can rely on

At mustard.co.uk, you can compare a range of quotes from leading insurers so you can be confident about finding a policy that suits both you and your budget. It’s quick and easy too, just answer a few questions about what you need — it’s as simple as that.