How To Get Cheap Car Insurance

by Marsh Finance on Nov 13, 2024 10:56:53 AM

👉 What is car insurance and how does it work?

👉 How to get the best deal on your car insurance

👉 Why is car insurance higher for first-time drivers?

👉 How does car insurance change as I get older?

👉 Get the perfect car to lower your insurance costs

👉 Car insurance FAQs

A person with two hands over a toy car, symbolising protection.

What Is Car Insurance And How Does It Work?

Every driver and motorist needs to have car insurance. Much like car tax, not having insurance can lead to penalties and fines, but what is it? Car insurance gives you financial cover if you have an accident with your car. It’s something that you pay either monthly or annually, and in the event of an accident, it covers your repair fees and the fees of anyone else involved in the incident (third-party cover). Making sure your car is insured is key to protecting yourself against potential incidents in future. After all, if you have a crash that isn’t your fault, you shouldn’t have to pay for repairs.

A person pointing to part of a car insurance document with someone else placing a small car on it, representing a car insurance deal.

How To Get The Best Deal On Your Car Insurance

Getting the best deal possible on your car insurance is something drivers up and down the UK constantly look for. The demand for cheap car insurance has seen the rise of insurance comparison sites dedicated to finding you the best deal. If you are new to car insurance and unsure where to look, we recommend using car insurance comparison sites to find the best deal for you. Some great sites to use are:

We recommend finding the best quote before you do anything else. Once you have done this, consider some of our top tips below to find cheap car insurance.

A white Volkswagen Up parked by the side of a road outside of a park, in a day time setting.

Choose A Car That Is Cheap To Insure

This might sound simple, but picking a smaller vehicle is one of the best ways to get cheap car insurance. Car insurance looks at car age, engine type and size to figure out how much insurance you pay, so going for a low-emission, small and safe car is a great way to trim your insurance costs. We’ve covered some of the best cars to insure in a separate piece, but to summarise, the Volkswagen Up is one of the best cars for low insurance costs, followed by the Hyundai i10 and the Kia Picanto. It isn’t a coincidence that these cars are the cheapest for insurance as they’re some of the smallest cars on the market. Therefore, if you are looking for something cheap insurance-wise, a smaller car is your best bet.

Thinking of buying a new car? Check out how much it’ll cost to insure before you commit.

A person operating the key of a steering wheel lock.

Improve The Security Of Your Vehicle

Consider adding extra security measures to your car to bring down insurance costs. If you live in a higher car crime area, it’s best to secure your car anyway, but doing so can also have a positive impact on your car insurance. Reducing the threat of your car being stolen will reduce the chances of your car insurance company needing to step in, which helps you unlock cheaper car insurance. To secure your car better, consider upgrading your car alarm system, adding a wheel lock and installing an immobiliser (to stop your car from getting anywhere without the keys being present). Other more simple steps can include making sure your car is locked and parking in a well-lit area. If you take these steps to secure your car, your insurance costs should come down.

Exposed wiring in a car whilst someone attempts to fit a black box device.

Consider A Black Box

Adding a black box to your car can bring down your insurance massively. Although numbers differ based on who you insure with, adding a black box can reduce your insurance costs by up to 40% (depending on your age and driving history), a massive drop that could be the key to cheap car insurance. Black box car insurance can help you save as it signs you up to having your driving monitored, making it easier to track your average speed and judge your day-to-day driving. Just providing this extra slice of information to an insurance company can help bring your overall costs down massively. Remember though, having a black box means you must be aware of your speed at all times.

A red toy car sat on a keyboard, symbolising online car buying.

Pay Upfront

You can choose to pay your insurance upfront and benefit from lower costs, as you miss out on having to pay any interest. This can be a nice and easy way to get cheap car insurance, but make sure you can afford the payment before getting yourself into financial difficulty. Of course, if a one-off payment is out of your budget, you can pay your insurance monthly.

Two toy cars sat on top of a car insurance form, with a calculator and pen and a calendar in shot, symbolising setting up car insurance.

Add An Experienced Driver Onto Your Policy

Adding an experienced driver can reduce your insurance costs. This is because age and driving experience determine how much you’ll pay, and having someone older who is experienced will, therefore, reduce the cost of your car insurance. Be aware, though, that adding a driver to an existing policy can lead to admin charges.

A person writing on paper, whilst simultaneously typing on a laptop.

Consider Your Job Title

You might not know this, but your job role has a big impact on your car insurance. We’ve taken a look at this in a separate article on the cheapest job titles for car insurance, but the best jobs for cheap car insurance are:

Mechanic
Administrator / Civil Servant
Designer
Design Engineer
Account Executive
Commercial Manager
Estimator
Engineer
Account Manager
Financial Analyst

If you have a job where you are required to travel a lot, your insurance costs will likely be high. If you work remotely and don’t need your car to commute to work, your costs will be lower. Some of the most expensive jobs for car insurance are:

Fast Food Driver
Apprentice
Fast Food Caterer
Fast Goods Proprietor
Construction Worker
Abattoir Worker
Barber
Car Valet
Delivery Courier

Having an idea of how your job impacts your car insurance is key. If you are considering a new job, having a look at how your insurance can change can help you find something that brings your premiums down.

An overhead shot of a road with a large white arrow pointing upward painted on.

Opt For A Higher Voluntary Excess

Voluntary excess is the amount you choose to pay on top of your compulsory excess in the event of an accident. Your compulsory excess is an amount set by the insurer that you have to pay after an accident. If you choose to increase your voluntary excess, you can bring down your monthly costs, but if you have an accident you’ll be required to pay more. This is a risky strategy, as you save in the short term but could end up coming unstuck down the line. Sometimes accidents are out of our control, and opting for a voluntary excess will work against you. If you trust your abilities and drive sensibly, though, choosing a higher voluntary excess could be a good way of reducing insurance costs. Whatever your situation, make sure you can pay the voluntary excess if it ever comes up in future. If you can’t, opt for the standard compulsory excess.

A person smiling and celebrating in their car whilst holding up a P sticker, indicating that they have just passed their test.

Why Is Car Insurance Higher For First-Time Drivers?

How much your car insurance costs is based on lots of factors such as:

Vehicle type
Your age
Your car age
Where you live

For first-time drivers, your age is most likely to lead to higher insurance rates. As insurance guards against potential issues, more experienced drivers are seen as less likely to have an accident, and so their premiums will be lower than a first-time driver. A first-time driver is seen as a riskier insurance customer, and so will face higher fees to offset the risk of a potential issue. Although first-time drivers tend to face significantly higher insurance costs than experienced drivers, your age when you pass can have a huge impact, too. If you are a first-time driver at 18, your insurance will be higher than a first-time driver who’s 25. Although both people are new to the roads, an older driver is seen as more mature and less likely to have issues than a younger driver. As an older first-time driver your insurance will still be higher than a more experienced driver, but it won’t be as high as a younger first-timer.

An old woman driving her car whilst smiling.

How Does Car Insurance Change As I Get Older?

Typically, as you get older your car insurance goes down. This is because with age you build driving experience which in theory should lead to less crashes or accidents. This trend continues up into your 60s, with a study by the Association of British Insurers (ABI) finding that drivers between 66 and 70 pay the cheapest premiums. Past this point though, premiums start to rise into your 70s and 80s. This is because data shows that drivers in this age bracket are more likely to have accidents and issues.

A person holds car keys up to the camera whilst sat in a car.

Get The Perfect Car To Lower Your Insurance Costs

Why not consider something smaller to reduce your insurance costs? Marsh Finance is the perfect place to swap out your wheels for something cheaper! Refinance your existing car and save on monthly payments whilst enjoying your new vehicle.

If you are looking to upgrade your car to something even bigger, we can help too! Browse our car marketplace and find the perfect wheels for you.

Car Insurance FAQs

Car insurance is financial protection in case you ever get into an accident with your car. Car insurance works by you paying monthly or annually, and in return an insurance company will cover your costs in the event of an accident. How much is covered depends on the type of insurance you choose, with more wide-ranging insurance costing more but covering more if you have an issue. Regardless of the type of car insurance, having it is mandatory for all drivers on UK roads. If you are caught without insurance you could face penalties and fines.

Find your insurance group online with a quick and easy check. Compare the Market provide a free insurance group checker. All you have to do is enter your make, model, the year it was built, the number of doors, the fuel type and transmission and you’ll see what insurance group your car is. When it comes to car insurance groups, the lower the number the cheaper the insurance.

You can reduce your car insurance costs by:

Comparing to find the best deal.
Choosing a car that is cheap to insure.
Improving your car security.
Considering black box insurance.
Paying your insurance up front.
Adding an experienced driving onto your policy.
Choosing a job title where car insurance tends to be low.
Opt for a higher voluntary excess.

There are a few different ways to check when your car insurance is due. The first is simple, check your details with your insurance provider. You will have signed up to an account, and by accessing this, you can see when your car insurance is due to expire. Another option is to look for any emails or paperwork related to your insurance. These might contain information as to when your renewal is due. You can also check online via askMID.com, a free tool that lets you know when your car insurance is set to expire.

You can compare car insurance online at the touch of a button. There are plenty of solid free sites that will run a car insurance comparison for you:

Temporary car insurance allows you to receive insurance cover for a short period of time, ranging from one hour to a month or two. This can be great if you are driving abroad or driving a friend’s car. This can be a popular choice for many as you only pay when you need it, which can help you save on costs.

Multi-car insurance does exactly what you think it would, cover you for multiple cars. The same provider should be able to cover you on multiple vehicles, with a discounted rate for adding cars to your policy in some cases.

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