Published November 2026.
The average car insurance premium paid was £566 in the second quarter of 2026, according to the Association of British Insurers, and much more for young drivers. Some of what you pay is out of your hands, but plenty isn’t. Here are 12 legitimate ways to lower your car insurance, and the shortcuts that could leave you uninsured.
How to lower car insurance: the short version
- Buy about three to four weeks before your renewal date, not on the day.
- Compare quotes every year: your renewal price can’t be higher than a new customer’s, but another insurer may still be cheaper.
- Pay annually if you can, and check the details you give are accurate.
- Choose a car in a low insurance group, especially if you’re a young driver.
1. Buy at the right time
Prices rise as your start date gets closer. Go.Compare sales data reported by Which? in August 2025 found the cheapest time to buy was 26 days before the policy started, at a median of £355 for comprehensive cover, against £493 for people who bought on the day, about 28% more. Start comparing around a month before renewal.
2. Shop around at every renewal
Since January 2022, FCA rules (policy statement PS21/5) mean your insurer can’t charge you more to renew than it would charge an equivalent new customer through the same channel. That ended “price walking”, where loyal customers paid more each year. But it doesn’t mean your insurer is the cheapest: other insurers may still beat it, so compare quotes every year. Not every insurer appears on comparison sites, so check a few directly too.
3. Pay annually if you can
Most insurers charge extra if you pay monthly, because you’re borrowing the premium. In Which? research published in October 2026, paying monthly cost 10% to 16% more than paying upfront for 22 of 36 quotes, adding up to £368 a year, and only two providers charged nothing extra. If you must pay monthly, compare the total cost, not just the instalment.
4. Choose the right excess
Agreeing to a higher voluntary excess, the amount you pay towards a claim, usually lowers the premium. Only do it if you could afford the total excess (compulsory plus voluntary) if you had to claim.
5. Estimate your mileage accurately
Lower mileage usually means a lower premium, so don’t overestimate. But don’t underestimate either: if your real mileage is much higher, the insurer could reduce a claim payment.
6. Describe your job accurately
Insurers price by occupation, and the same job can be described in more than one accurate way. It’s fine to choose the description that best fits what you actually do. It’s not fine to pick a job title you don’t have. Under the Consumer Insurance (Disclosure and Representations) Act 2012, you must take reasonable care not to give false information. If you’re careless, a claim can be cut in proportion to the premium you underpaid; if it’s deliberate, the insurer can refuse the claim and cancel the policy.
7. Add a named driver, honestly
Adding an experienced driver with a clean record can sometimes lower a young driver’s premium. But the main driver must be the person who drives the car most. Naming a parent as the main driver of a car their child mostly drives is fronting, which is fraud: see our guide to named driver insurance and fronting.
8. Consider black box insurance
Young and new drivers especially can save by letting the insurer track how they drive. It isn’t always cheaper, and bad driving can push the price up. See our guide to black box insurance.
9. Park somewhere safer
A garage or private driveway is usually cheaper to insure than the street. Tell the insurer where the car is actually kept overnight.
10. Improve security
An approved alarm, immobiliser or tracker can help, especially on cars that are often stolen. Our guide to keyless car theft explains which cars thieves target and what actually stops them.
11. Build and protect your no-claims bonus
Each claim-free year usually earns a bigger discount. Protecting it costs extra, and it protects the discount, not the premium: your price can still rise after a claim. Weigh the cost against how much the bonus is worth.
12. Choose a cheaper car to insure
If you’re buying, the car makes a big difference. Every car has an insurance group from 1 (cheapest) to 50. See our guide to the cheapest cars to insure, and look up any car’s group with our free car specs check before you buy. Our guide to insurance groups explains how they work.
What not to do
- Don’t front: naming yourself as the main driver of someone else’s car is fraud.
- Don’t leave out convictions, claims or modifications. Insurers check, and a false application can void the policy.
- Don’t cut cover without thinking. Third-party only cover isn’t always cheaper than comprehensive, so compare both.
- Don’t drive uninsured. It carries a £300 fixed penalty and 6 penalty points, or an unlimited fine and a possible ban in court.
Frequently asked questions
When is the cheapest time to buy car insurance?
About three to four weeks before your policy starts. Go.Compare data reported by Which? found 26 days before was cheapest, about 28% less than buying on the day.
Is it cheaper to renew or switch car insurance?
Your renewal price can’t be higher than your insurer’s price for an equivalent new customer, but another insurer may still be cheaper. Compare quotes every year.
Does a higher excess lower car insurance?
Usually, yes. But only choose an excess you could afford to pay if you claimed.
Is it cheaper to pay car insurance annually?
Usually. Most insurers add interest or charges for paying monthly; Which? found it could add up to £368 a year.
Can I lie about my job to get cheaper insurance?
No. Choose the accurate description that best fits your job, but giving false information can mean a reduced or refused claim.
- ABI: motor insurance premiums and claims, Q2 2026 (July 2026)
- Which?: the cheapest day to buy car insurance (11 August 2025)
- FCA: PS21/5 general insurance pricing practices (May 2021)
- Which?: charges for paying monthly for car insurance (14 October 2026)
- Consumer Insurance (Disclosure and Representations) Act 2012, Schedule 1
- GOV.UK: driving without insurance
- Why are car insurance premiums on the rise?
Choosing a car? Look up its insurance group, engine and running costs with our free car specs check.
2 thoughts on “How to Lower Car Insurance: 12 Ways to Cut Your Premium”