Cannot afford automotive insurance coverage? What to do and tricks to decrease prices

Fighting automotive insurance coverage prices? Discover out what you are able to do when your funds is overstretched, plus methods to decrease your invoice with our straightforward ideas.

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Are you uninterested in your automotive insurance coverage premiums skyrocketing yearly? Me too!

Has your renewal discover simply landed in your door mat and the value has gone up massively? Yep, me too!

Automobile insurance coverage costs have risen 67.2% within the earlier 12 months (that’s virtually twice the equal in 2020, and it’s nonetheless going up!), and with the price of residing hovering, discovering room within the funds from some place else is getting tougher to do.

The right situation is to scale back your automotive insurance coverage invoice with out compromising on protection. Sounds straightforward, hey? We managed to get a decrease premium once we renewed this 12 months, so it may be potential.

Don’t let the spiralling prices you first see put you off or hold you off the street. Listed below are some prime tricks to decrease your insurance coverage premiums and a few sensible choices if you happen to simply can’t afford the duvet.

Easy methods to make automotive insurance coverage cheaper

Whereas the general common automotive insurance coverage presently sits at round £995 a 12 months, as a comparability, to assist with understanding the place you’re with pricing, the median prices of automotive insurance coverage in November 2023 have been:

  • £607 – third social gathering solely
  • £467 – absolutely complete
  • £456 – third social gathering, fireplace and theft

Store round

Chances are you’ll already be doing this, however I’ll shout it loudly as many individuals nonetheless don’t – examine, examine, examine!

You could possibly save round £500 a 12 months by getting a quote from some place else! Don’t simply renew your insurance coverage with the identical firm as a result of it’s straightforward.

Go searching and get costs from completely different insurers. There are many web sites the place you are able to do this and get rewarded, too:

Enhance your extra

The surplus is the quantity you pay in the direction of any claims you make.

In the event you conform to pay a bit extra in the direction of an extra, your general insurance coverage price would possibly go down.

Simply ensure you can afford to pay the surplus, because it’s an enormous lump sum in money, ought to it’s essential to declare!

Contemplate telematics insurance coverage

That is the place a small system, often known as a “black field,” is added to your automotive to trace your driving. It’s going to monitor your driving habits, together with your pace, braking, and while you use the automotive.

My daughter had one when she first handed (and nonetheless does, because it’s less expensive for her).

Whereas she dislikes the thought of being “watched” she was given a partial refund and her premiums have been lowered in month 6 of her coverage because the black field proved she was a secure driver.

Pay yearly

In the event you can, attempt to pay on your insurance coverage multi function go moderately than month-to-month.

This usually works out cheaper as some firms cost additional for the comfort of spreading the funds.

Drive safely

Insurance coverage firms usually give you decrease charges in case you have an excellent driving report with out accidents or rushing tickets.

Scale back mileage

In the event you drive much less, you would possibly get a decrease fee.

Let your insurer know if you happen to’ve minimize down on driving, like working from dwelling extra usually.

Take away add-ons

Fairly a couple of insurances throw in additional covers corresponding to breakdown cowl, windscreen cowl, private accident, private belonging cowl, and authorized safety.

Whereas it would come in useful, you could discover it cheaper to purchase the duvet individually as a standalone cowl.

Chances are you’ll have already got cowl by means of your private home insurance coverage (for private belongings) or probably by means of any union subs (authorized cowl can generally be included).

Ensure you’re getting the correct cowl on your wants. It’s about discovering a stability between price and being correctly protected.

No frills coverage

Take into consideration what cowl you really want.

Do you want all of the extras, like a courtesy automotive or authorized cowl?

If not, a extra primary coverage could be cheaper.

Multi insurance policies

Some insurers provide reductions if you happen to deliver collectively a number of insurance policies, like automotive and residential insurance coverage, or insure multiple automotive with them.

Keep away from modifications

Including extras to your automotive will imply it’s costlier to restore ought to it’s essential to declare, so keep away from doing something to switch your automotive.

Verify for affiliation reductions

Some insurers provide reductions to members of sure organisations or professions. Verify if any teams you’re affiliated with have partnerships with insurance coverage firms.

This could possibly be an alumni low cost for sure universities, Blue Mild Card for emergency staff, or a union low cost if you’re a member.

Park securely

Automobiles parked in a storage or a safe, off-road location usually have decrease insurance coverage premiums because of the decreased danger of theft or harm.

Modify your job title

Generally, slight changes in the way you describe your occupation (whereas nonetheless being sincere) can affect premiums. Totally different job titles could be seen as increased/decrease in danger.

Set up a splash cam

Some insurance coverage firms provide reductions in case you have a splash cam put in in your automotive, as it may possibly present proof in case of an accident.

Take a driving course

I’ve added this to the tip as a result of I’m not completely positive if it’s true. May you tell us?

I keep in mind being advised that having a Cross Plus, or different comparable permitted driving programs to show you’re a secure driver, was meant to assist deliver down premiums, however I’ve by no means seen an insurer ask whether or not I’ve this once I’ve in contrast cowl!

Can’t afford automotive insurance coverage

Even when after looking round for a greater deal, the prices are simply too excessive, there are some choices you can take into account:

Prioritise your wants

That is the place it’s essential to be completely sincere with your self.

You want to actually take into account how important your automotive actually is to your every day life.

If it’s not essential for work or different causes, it’s value weighing up whether or not you may handle with out it for some time, maybe utilizing public transport or automotive sharing.

You’ll save on insurance coverage, common repairs, MOT, street tax, gas prices, however you’ll have to pay out extra in buses and trains.

We removed our automotive in 2014, and whereas it took a little bit of getting used to, it did save us a great deal of cash whereas we have been getting ourselves out of debt,

Change your automotive

If potential, take into account promoting your present automotive and switching to at least one that’s cheaper to insure.

Even the most cost-effective electrical automobiles won’t be a good suggestion. Though they’ve low operating prices, insurance coverage could be increased as their components are costlier to supply and match.

A Group 1 car, corresponding to a Fiat Panda or Chevrolet Spark, won’t be as highly effective as you’re used to, however they’re among the most cost-effective automobiles to insure.

Or, nonetheless low cost, look to get a Group 2 – 5, which incorporates automobiles just like the Ford Ka, Renault Clio, Skoda Fabia, and Nissan Micra.

Usually, smaller, much less highly effective engines and fashions which are cheaper to restore will see you pay much less for insurance coverage.

Converse to your insurer

Contact your present insurer and clarify your state of affairs.

They may have the ability to provide a extra inexpensive plan or recommend methods to scale back your premium with out compromising an excessive amount of on protection.

Be a part of a automotive sharing membership

In the event you solely want a automotive sometimes, becoming a member of a neighborhood automotive sharing scheme could be cheaper than proudly owning and insuring your personal car.

If you need to use a automotive, you may e book one close to you thru a automotive sharing web site or app after which accumulate and drive it for a small cost.

Some firms provide automobiles solely for short-term leases (and the costs usually are not as excessive as common automotive leases), and other people additionally lease out their very own automobiles in the event that they don’t use them an excessive amount of (identical to Airbnb, however for automobiles).

Use a dealer

Insurance coverage brokers can generally discover offers that aren’t broadly marketed.

They’ll negotiate in your behalf and will have entry to particular charges.

Contemplate Pay-As-You-Go insurance coverage

It is a extra versatile possibility the place you solely pay for the miles you drive.

It may be a sensible choice if you happen to don’t use your automotive usually.

Why has automotive insurance coverage gone up?

To be truthful, we hear the identical factor annually that automotive insurance coverage costs go up, however this 12 months has been a extremely sharp rise.

And, with the price of the whole lot else leaping, however salaries and any advantages solely going up however a couple of quid right here and there, it’s not straightforward to soak up the prices in our family budgets!


Inflation is an enormous purpose why the whole lot goes up.

For automotive insurance coverage, specifically, when it takes a very long time to settle claims, the worth of cash can change considerably.

As an example, research have discovered that with inflation at about 3% in 2024, the value of insuring your automotive has gone up due to these modifications.

The vitality disaster

Since 2021, the price of vitality has shot up by 36%.

This improve has made it costlier to repair automobiles, which in flip has made automotive insurance coverage costlier.

Rising prices of repairs

Repairing automobiles has change into 33% costlier since early 2022, in response to the Affiliation of British Insurers (ABI).

Additionally, the cash paid for work (labour prices) jumped by 40% at the moment.

These hikes have led to increased automotive insurance coverage premiums.

Provide chain slowdowns

In 2023, provide chain issues affected 77% of mid-sized companies, resulting in delays within the manufacturing sector.

This has prolonged automotive restore occasions, requiring extra courtesy automobiles and pushing up insurance coverage prices.

No extra loyalty reductions

The Monetary Conduct Authority (FCA) put a cease to loyalty premiums, often known as worth strolling, in 2022.

This observe used to supply cheaper costs to new prospects whereas growing costs for current ones over time.

Now, firms begin with increased premiums, resulting in pricier insurance coverage.

Naomi Willis
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