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How to get cheap car insurance

Grab 100+ insurance quotes & cashback

Tony Forchione
Tony Forchione | Edited by Salman Haqqi
Updated 3 December 2024

Car insurance premiums have dropped – very slightly – for the first time since January 2022 meaning NOW could still be a good time to secure the best deal on your car insurance policy. To maximise your savings, it is important to shop around and NOT auto-renew with your current insurer until you have checked elsewhere. This guide will help you get the best and cheapest car insurance possible with our cost-cutting Compare+ Car Insurance tool.

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In this guide

MSE's Compare+ Car Insurance tool

You could save £100s on your car insurance costs by switching car insurer. Our advice has always been to never just auto-renew – instead combine comparison sites to scour 100s of insurers and save money in minutes.

MoneySavingExpert Compare+ Car Insurance.

MSE's Compare+ Car Insurance tool is designed to take the hard work out of finding cheap car insurance online. You can...

  • Fill in just one questionnaire. We've borrowed MoneySupermarket's (so if you've used it before, your answers can be auto-filled).
  • Get MSE cost-cutting tips as you answer. Like our 'best time to buy' analysis tool which tells you the likely cheapest time to get quotes.
  • See insurance quotes as a benchmark. These are from MoneySupermarket's comparison. But of course we want you to beat them...
  • Use personalised tips to cut costs further. These include whether you should add an additional driver, check multicar policies, or tweak your job title, often with one-click checks to see if it helps.
  • Find out if other sites may give cheaper quotes. We assess if Direct Line (which isn't on comparisons) is likely to be cheaper for you, and give you our latest comparison site order of others to try.

As Emma emailed: "Thank you for this tool. My daughter (20) just passed her test. We liked how easy it was to tweak things (start date, job description, adding second driver) and see the cost impact. She now has a year's insurance at under £60 a month, which is amazing, as well as a new life skill and the confidence that she'll be able to sort out her insurance next year with the tool."

If you prefer to do more of your own research when it comes to getting quotes, there's still our tried-and-tested steps to getting the cheapest car insurance premiums below, including the comparison sites to check out.

What is car insurance?

Car insurance is primarily to help protect other motorists and road users if you damage their vehicle or property. And depending on the level of cover you have, it can also cover your car if it is stolen, broken into, or if you're involved in an accident.

All cars must be insured, unless not in use and off the road (for example, stored in a garage), with a statutory off road notification (Sorn).

There are three main types of car insurance cover, which we cover in more detail in our types of car insurance guide, but in brief, you can opt for:

  • Third party car insurance. This is the minimum level of cover needed to drive legally, and only covers damage to someone else or their property.
  • Comprehensive car insurance. Comprehensive car insurance is the widest level of cover available. You get third party, fire and theft cover, plus if you have an accident and it was your fault you can claim the cost of repairing your car (as well as any damage you cause to someone else or their property).

What's the cheapest type of policy? 

This isn't a straightforward answer as the cost – your premium – is based on how much of a risk insurers perceive you to be. It's about how likely the insurer thinks you'll be to make a claim – so, for example, new, younger drivers will pay more than an older experienced driver who can prove they've been accident-free for years (as they're viewed as higher risk).

This also extends to the type of policy. You'd naturally assume third party cover, or third party, fire and theft, would be the cheapest options, because they're lesser cover, but car insurance isn't always logical. 

Some insurers may see you as more responsible if you opt for comprehensive car insurance, so price you as a lower risk, giving you a wider level of cover for a smaller cost. There are no hard and fast rules here though – it's a matter of trial and error when getting quotes. But never just check third party if you're looking for the cheapest policy.

It's also worth thinking about how much voluntary excess you're willing to pay if you did make a claim – usually a higher voluntary excess will lead to a cheaper quote, though if you do claim you're likely to fork out more than what you saved.

Other factors can influence costs too, such as whether you've a 'Pass Plus' certificate, 

Read on for full help and tips, or see our Young drivers' insurance guide if you're aged 17-24 or Multicar insurance if you've more than one car to insure.  

Watch: Martin Lewis's warning for those who pay by monthly Direct Debit 

Choosing to pay for your insurance in one go using your savings is generally the cheapest way to pay, as paying by direct debit is essentially taking out a loan. But for those who need to spread the cost, watch this message from Martin Lewis on how to avoid paying interest of nearly 50%. See more on the APR some insurers are charging below.

Do you pay car insurance by monthly Direct Debit? BEWARE! Some insurers are charging 30, 40 and nearly 50% APR
Embedded YouTube Video

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Cheap car insurance renewal tricks

Here are our top tips and tricks to find the cheapest cover and cut the cost of your car insurance:

  • 1. NEVER auto-renew. Insurers can't charge existing customers more than newbies, but most can still save by switching

    Since 1 January 2022, rules have banned car and home insurers from using a process known as 'price-walking' or the 'loyalty premium'. 

    This is where insurers would lure new customers in on cheap deals and then increase renewal prices each year, even if there had been no change in their circumstances, risk level or property. 

    However, this DOESN'T mean your renewal quote is the best deal  – which is why, as we mention above, you should never auto-renew. Different insurers have different prices so you should still always compare quotes to see how much you could save from switching.

    Plus, insurers can still charge a different price via different channels – for example, lower premiums on certain comparison sites (provided existing customers who originally came via that site are charged the same). So, always try multiple comparison sites.

  • 2. The best time to buy car insurance quotes is 20 to 27 days before you need the policy to start

    Your renewal notice from your insurer will show the new price for next year (and the price you paid last year). It's typically sent around 28 days before your current policy ends. If you do nothing, it'll usually automatically renew at that new price, so always have your renewal date in your diary to take action. 

    The cheapest time to get quotes is 26 days ahead of your renewal date – making it the best time to get a quote  as your cover becomes more expensive the closer you get.

    Our analysis of over one million quotes from January to April 2024 from MoneySupermarket showed a policy costs an average of £2,277 a year on renewal day. But 26 days earlier the average is just £906 a year, a MASSIVE £1,371 less.

    In general, the closer to your renewal date you get quotes, the higher risk you're deemed to be (we've heard that it can show insurers you're a bit disorganised). But getting quotes too early, for example, 28+ days out, can also push the average price up – likely as fewer insurers will provide quotes that early. 

    It worked for these MoneySavers...

    Renewed three weeks early after your tip. It's gone from a renewal price of £108/month to £51/month [saving £684/year]. Checked the comparisons later and it went back to £100. Happy. Hayley via Twitter

    Just did mine (24 days early) – saved over £690 over my renewal price. Cara via Facebook

    See the best time to renew for full help.

  • 3. Check if you can save by adding a responsible driver to your policy

    When getting insurance quotes, it's always trial and error that drives down the price, rather than logic. Plus different insurers respond in different ways, so it's just a case of trying different quotes and seeing what happens. Here's a trick to try...

    Adding an extra 'responsible' driver to your policy

    It may seem counter-logical, but covering an extra driver can reduce rather than increase your cost – in some cases by £100s or £1,000s. If you're a high-risk motorist and you add someone who is a much lower risk as a second (or third) driver, they can bring down the average risk and you may get a cheaper policy.

    It just needs to be someone who would reasonably drive your car. Here's a good example, but it can work for anyone.

    As I'm a young, new driver my insurer wanted £5,000 but after adding mum and dad it dropped to £1,900. @Faevouritexox

    The better the driving history and lower the risk, the more impact it should have. Adding someone with a good driving record is likely to make the most savings, but anyone who's a lower risk can help. By law, insurers can't discriminate over gender, but age, experience and driving history can make a difference. See named driver insurance for more info.

    Warning: Never add someone as the main named driver if they're not. This is known in the industry as 'fronting', and is fraud. If you do it and are caught, you could face a conviction and your insurance will likely be invalid.

  • 4. See if (legitimately) tweaking your job title can save you £100s

    An illustrator is often cheaper than an artist, an editor cheaper than a journalist, and a PA cheaper than a secretary – the job title you choose when taking out insurance can sometimes save you cash.

    Have a play with our Car Insurance Job Picker tool and see if small changes to your job description could reduce your costs. Remember, never lie, as this would be considered fraudulent. If it works for you, share your success story with our forum users.

    If you don't have a job, you face a potential fivefold jump in insurance costs by declaring you're unemployed. The same hikes don't apply to homemakers (housewives/househusbands). If that's you, say so to avoid a hike in costs.

    However, only enter 'homemaker' if you're genuinely not seeking work or receiving benefits that require you to seek work. Otherwise, it's fraud.

  • 5. Before getting quotes, make sure you're on the electoral roll – it can affect costs

    Being on the electoral roll is not just about being registered to vote – it can also make a difference to your insurance premium.

    Insurers such as Aviva, Direct Line, Churchill, Privilege, Co-op and Endsleigh have confirmed that they use the electoral roll as part of the ID-checking process to combat fraud.

    Not being on the electoral roll, or having incorrect information registered, makes it more difficult for insurers to identify you, so they'll probably give you a higher quote or simply not offer cover.

    If you're not already on the electoral roll, it's straightforward to do. See our Electoral roll guide for more information, including the all-important how to get on it.

  • 6. If you've more than one car, check whether a multicar policy is cheaper

    If you have more than one car in your immediate family or household, this could be for you. For some people, discounts for adding multiple cars could save £100s, or even £1,000s in some cases, but for others it could actually be more expensive. 

    To help, our dedicated Multicar insurance guide explains when to get a multicar policy, how they work and how to get one – even if you have different start dates for each car.

  • 7. Check if one policy for both your car and home insurance works out cheaper

    After you've checked the price of separate cover, it's worth checking if you can save by combining them.

    Both Admiral Multicover* and LV Multi Cover* currently offer home and car insurance on one policy. This can be useful as you just have one set of admin to do. However, it's not always going to be cheapest option, so do always check getting separate policies to see if it's going to save you.

    The other thing to be aware of is that if you have one policy, a claim for either your home or your cars is likely to push the price of the whole thing up when you come to renew.

    So, it's also worth checking these insurers who offer a discount on new policies to their existing customers. For example, Direct Line and Aviva all offer discounts on your car insurance if you have another policy with them.

    What if my home and car policies have different renewal dates?

    With Direct Line and Aviva, different renewal dates don't matter as each car and your home will have its own policy and policy number. The insurer will just give you a discount for each policy you purchase – as long as you let it know you're already an existing customer.

    With Admiral and LV, although you'll be given a total price to pay, this will factor in the different start dates. So your cover with your existing insurer will remain in place until it renews, at which point you can cancel it and the Admiral (or LV) policy will take over. You'll get an 'annual equivalent price', as if all were insured for a full year, to help you compare against other insurance providers.

     

  • 8. For the cheapest policies, you'll usually need to pay annually

    A monthly payment plan – where you pay for your policy in instalments – for your insurance is essentially a high-interest loan, and can vary from under 20%, to over 40% APR.

    For example, if your premium is £1,000 and you want to pay monthly, you could pay £95/mth, which is £1,140/year (£140 more) at an average APR of 25%

    So pay in full, or if you can't afford it, use a credit card with a lower interest rate (or better still, a 0% credit card for spending, ensuring your repayments are big enough to clear it within a year).

    If paying by credit card, check if the insurer or provider charges a fee for doing so – though the fee is usually less than the interest charged on monthly instalments.

    Insurance provider APRs

    Insurance Provider

    		 APR if you pay monthly

    Insurance Provider

    		 APR if you pay monthly
    achoice 48% Halifax 23.50%
    Autonet 30% Hedgehog 44.60%
    Aviva 16% iGo4 39.50%
    Axa 15% LV 19%
    Be Wiser 29% Performance Direct 33%
    Beam Insurance (AA) 27% PolicyExpert 27%
    Churchill 26% RAC 29%
    Cornmarket Insurance 39% Saga 24%
    Direct Line 23% Swinton 34%
    Esure 26% Tesco  21%

    Correct at October 2024.

  • 9. Saving from switching is not just for those at renewal – though you may need to factor in cancellation fees

    Many assume switching is only for those at renewal. It's not – you can actually switch at any time. This is important when prices are rising, or if you're someone who recently auto-renewed without doing comparisons to see if you can cut costs. We've a full guide on cancelling your car insurance, but in short...

    • If you cancel a policy mid-year and you paid upfront, you'll usually get a pro-rata refund for the rest of the year, providing you haven't claimed. If you pay monthly, you'll just stop paying the old insurer and start paying the new one.

    • There will normally be a cancellation fee of about £50 (check what your insurer charges), so your savings from switching should outweigh this to make it worth it. The longer you've got to go on your policy, the more likely you'll be better off switching.

    • You won't earn the current year's no-claims bonus if you switch so you'll need to be making a substantial saving to make this work.

    If it makes financial sense for you to switch mid-year, call the old insurer to tell it you're cancelling. Ask if it has a notice period, as this will dictate the date you want the new policy to start. Then buy the new policy. Make sure the dates align so that one ends on one day, and the other policy starts on the next day to ensure there's no time when you're uninsured.

    Switching mid-year can save £100s, as it did for Andy and Miriam...

    You gave us the confidence to challenge our car insurance mid-policy as we were paying £40 a month. Now we're paying £16. Andy

    In November my insurance was £1,200. Now, with a little help from turning 25, I have done a mid-year price check and it's £230! Miriam

Get cheaper car insurance quotes

So now you know the basics of car insurance, here are the steps you need to follow to ensure you find the cheapest price possible. 

Warning! Changing details between quotes could invalidate your insurance: Small tweaks to your mileage or job title are likely to be OK, but no matter how tempted you are to say someone else is the main driver, or to pretend you have no points, or to underestimate your annual mileage deliberately to get a lower premium – don't. You must be completely honest or it could invalidate your insurance and even lead to prosecution. 

Step 1: Get quotes from comparison sites – two or more is best

Car insurance.

Comparison sites are technically insurance marketplaces, as they are allowed to negotiate their own prices with insurers (as long as they don't cost more than going direct).

Therefore it's not just that different insurers will appear on different comparison sites, it's also that different sites can have different prices for the same insurer. So it's best to use at least two, and more if you've time, to maximise your chance of getting the cheapest quote.

Below is our current order of which to try, though the difference in order is small, so if any of their perks really appeal (see below), as long as you're trying a couple, go for those you like most.

  • How do we pick the order?

    We analyse the prices of a large range of insurance quotes given by Compare The Market, MoneySupermarket and Confused.com. We then take the following steps:

    1. We check how many times each comparison site returned the cheapest or within £5 of the cheapest quote.
    2. The site giving the greatest number of cheapest quotes, or within £5 of the cheapest, is ranked first.
    3. We then analyse the site ranked first with each of the two remaining sites. The combination of the two that returns the greatest number of cheapest quotes will be ranked as first and second to try, to increase your chances of a cheap quote at speed.

    Here are the latest scores

    This month's results show that Compare The Market gives the cheapest quote 52% of the time – the most out of the three comparison sites. Get a quote from Compare The Market and MoneySupermarket and you'll increase your chances of getting a cheaper quote to 84%.

    To boost your chances of getting a cheap quote even further, get a quote from Compare The Market, MoneySupermarket and Confused.com.

    Follow this order if you're aged 25+, do not have more than three penalty points on your driving licence, are claim/accident-free, and it's not a company car (if you're under 25, see our Young drivers' insurance guide).

  • What to expect when getting a quote

    Once you've put in your details to a comparison website, the results could be quite overwhelming. Below is a (not real) example of what you might expect to see on a typical comparison site and our top tips on what to be aware of below.

    Example quotation.
    Generic Car Insurance Co.
    Annual cost
    £875
    Voluntary excess
    £250
    Compulsory excess
    £200
    Legal cover
    Likely to show as included or available (with a cost)
    Breakdown cover
    Likely to show as included or available (with a cost)
    Windscreen cover
    Likely to show as included or not available
    Courtesy car
    Likely to show as included or available (with a cost)

    Explanation of the quote and any of the add-on's...

    • Annual cost. This is the total cost of the policy, and if paid monthly, it will show the monthly payment, deposit required, instalment charge, and the total amount paid over time.
    • Voluntary/compulsory excess. The voluntary excess is the amount you choose to reduce your premium, while the compulsory excess is set by the insurer and depends on factors like driver age or car type; in a claim, both must be paid.
    • Legal cover. Optional coverage to help recover costs or losses from a claim where you're not at fault, such as covering your excess, loss of earnings, or personal injury.
    • Breakdown cover. Optional coverage with various levels, and you should compare the cost of upgrading your policy versus buying car breakdown cover separately.
    • Windscreen cover. Typically included in comprehensive policies, but check for the specific excess amount, especially if you don’t use the insurer’s recommended repair firm.
    • Courtesy car. Check if a courtesy car is included or available as an add-on, and verify the type, duration, and if it’s provided in cases of theft or a write-off.

    And remember, you should always check...

    • The level of cover is right for you, whether Fully Comprehensive or Third-Party, Fire & Theft.
    • Be completely honest with your answers, as false information could invalidate your insurance.
    • You have followed our top tips and tricks to find the cheapest cover.

Do note that comparison sites use a soft search of your credit file to return quotes, though this has no impact on your ability to get credit in future.

Try comparison sites in this order

Site Official perk info & MSE's analysis
Try as many as you can, in this order...
Compare The Market.
Compare The Market*

Official perk info: Meerkat Movies and Meals. A year's 2for1 on cinema tickets and meals on selected days of the week.

 

MSE perk analysis: For those who'd use it, and go to the flicks and restaurants, this perk can be worth £100s. However, instead you could grab other perks as you can use our trick to get Meerkat Movies and Meals for £1 for a year.

 

See our full Compare The Market perk analysis.
MoneySupermarket.

MoneySupermarket*

Official perk info: SuperSaveClub and price promise.

SuperSaveClub: Buy annual car insurance and you can join this club, which gives you a 12-month Free Days Out pass. Plus, you'll get a gift card of up to £15 for each subsequent qualifying product purchase you make through MoneySupermarket. 

Price promise: If you buy car insurance, then find a cheaper like-for-like policy with the same insurer (either direct or via another comparison site), MoneySupermarket refunds the difference plus a £20 gift card.

MSE perk analysis: The Free Days Out pass gives you one adult entry to places across the UK, so used regularly it could be worth £100s. The £15 gift card on subsequent qualifying products is a bonus, as long as the quote's competitive.


You can use the price promise even if you’re not a member of the SuperSaveClub, though you'll have to claim it.

See our full MoneySupermarket perk analysis.


Confused.com*
 Official perk info: A Greggs hot drink per month and the choice of a... £20 Halfords voucher | £20 Sainsbury's voucher | £20 Just Eat voucher | Access to Paramount+ for three months.

MSE perk analysis: The highest value is Paramount+, just, at £20.97. Add 12 hot drinks, and the value increases to about £40.

See our full Confused perk analysis.
Then, to boost chances of finding a cheap quote further, try...
Quotezone* – another comparison site, and you get access to Rewards+. It includes discounted tickets at selected Cineworld and Odeon Cinemas (links open PDFs).
Gocompare – a big comparison site which currently gives £250 'free' excess cover with every purchase.
Direct Line – an insurer, rather than a comparison, but you won't find its quotes on any comparisons, so it's worth trying in case it's cheaper for you.

Struggling to find (affordable) cover?

If you've had a string of claims or accidents, you have a medical condition that affects your driving, or you've four or more points on your driving licence, you may find it hard to get an affordable quote from a comparison site. Some may find it hard to get cover at all.

If no or few insurers are quoting on the sites above, or premiums are coming back too high, consider enlisting the help of a broker. Search the British Insurance Brokers' Association website to find someone who can help.

Keep on top of your car insurance

Two mobile phones showing MoneySavingExpert.com content.

Want to know when YOUR cheapest time to get motor insurance is? The MSE App has a new tool called Bill Buster – give us a few details about your car insurance policy and we'll track it, then alert you when it's ending so you know when to start getting quotes to save.

Try it in the MSE App – available in Apple's App Store or Google's Play Store. 

Step 2: Check if cashback sites' comparisons can beat your top quote

If you use cashback sites, you'll know that if you get your car insurance via them they will get a 'lead fee' for sending you on to the insurer. Once they're paid the fee by the insurer, the cashback will either be paid directly to you, though some are now starting to only pay the cashback to a charity.

It's also worth knowing buying this way can sometimes beat going to the comparison sites above, but do check your quote through a cashback site isn't more expensive – and it's best to think of the cashback as a bonus, rather than 100% guaranteed as sometimes the deal isn't tracked or the cash paid out.

There's a version of MoneySupermarket.com's comparison on cashback site Quidco* and a version of Confused.com's on Topcashback*, where you'll get £45 if you buy a policy through either of them. (You don't get the standard MoneySupermarket or Confused perks too.)

Yet as we say above, do keep an eye on the quotes you get as you may not get exactly the same prices as you would from the price comparison websites' own results.

The easiest way to do it is to look at the quotes you get, then take off £45 from Quidco's or Topcashback's cheapest, and see which works out cheapest for you.

Our Top cashback sites guide has full information on how these sites work. 

The current record's 96p for a year's car insurance from someone who went through a cashback site. This is an extreme example, but let us know if it's worked for you or if you've beaten this record.

Step 3: Once you've found the cheapest quote, try to haggle a bigger discount with your existing insurer

Haggling is not a must – especially if you want to try a new provider – but if you're looking to renew with your current insurer it's well worth contacting it to negotiate.

Once you've followed the steps above and got the overall cheapest price, give your insurer a call or use its online chat to see if will beat or match it. Usually it's as simple as asking, but if you're not getting any luck, see our Car and home insurance haggling guide for top tips.

Step 4: Finally, check the policy carefully before buying

Once you've found the cheapest quotes, there are a few things to do...

  • Double-check the quotes. Click through to the provider's own website to read the quote thoroughly, as some comparison sites make a few assumptions to speed up searches.
  • See if the insurance company is registered with the Financial Conduct Authority (FCA). The insurer will usually say it is but always check on the FCA register.
  • Make sure the policy is suitable for your needs and see if you need any add-ons. There are always extras to choose from, so make sure that the policy you've picked only includes the ones you want. 

  • Common add-ons explained

    Courtesy car If you couldn't survive without a car if it needed to be fixed, it's best to opt for a policy that has a courtesy car as standard or a cheap add-on.  Always check what sort of car you might get, how long you could have it for and if you'd get a courtesy car if your car's stolen or written off.
    Breakdown cover Many insurers include this as an incentive for you to buy, but check the policy carefully as it's likely to be basic breakdown cover (in other words, it usually won't include home start, or onward travel to your destination). It's often possible to upgrade the cover but check if the upgrade price is cheaper than buying car breakdown cover separately.
    Protected no-claims discount This usually means you can make a claim and not lose your discount next time you renew (if you stay with your existing insurer). However, do note that protecting your no-claims discount does NOT guarantee your premium won't go up.
    Legal costs cover This helps recover costs or losses you incur as a result of a claim where you weren't at fault. For example, the excess you have to pay, potentially claiming for a loss of earnings or personal injury following an accident where the other driver's at fault.
    Key cover This does what it says on the tin – it covers the cost of new keys, for example, if yours have been lost or stolen. Before committing, check if your car breakdown policy already covers you for this.

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How does car insurance pay out if I have a claim?

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You'll receive a payout once your claim has been fully processed. How long this takes largely depends on the nature of your claim.

Straightforward cases are typically resolved within a week or two. Whereas more complicated claims, such as where the cause of an accident is unclear, the damage is more severe or multiple people are involved, are less likely to be settled quickly. 

The payout you get will typically cover the cost of repairs and other damages – though the exact amount will depend on your cover limits and voluntary excess. Generally speaking, you will receive this payment as a lump sum to your bank account – minus any deductibles. That said, it's a good idea to double-check your policy (for example, the insurer might instead pay a garage directly for any required repairs). As part of your policy, you may also get a courtesy car to drive while yours is being fixed.

It is also worth knowing that if your vehicle is a total loss, and you do not think the insurer has placed a fair value on your vehicle, you can complain to the insurer to try and resolve. If you have no joy, you can escalate your complaint to the free Financial Ombudsman Service.

If you'd like to learn more about the car insurance claims process, check out our Making a claim on your car insurance guide.

How to complain about your insurance company

Insurance companies don't always have the best customer-service reputation, and while a provider may be good for some, it can be hell for others.

Common problems include claims either not being paid out on time, not at all, or even an undervaluation of your car (by the insurer) as a result of a total loss claim. Other reasons to complain can also be unfair charges for changing your address, drivers, car, or exclusions being hidden in small print. Also, It's always worth trying to call your provider first, but, if not, then…

You can use free complaints tool Resolver. The tool helps you manage your complaint, and if the company doesn't play ball, it also helps you escalate your complaint to the free Financial Ombudsman Service.

Car insurance FAQs

Before getting a policy

  • Will a policy cover me to drive other cars?

    Obviously car insurance covers you to drive your own vehicle (that you have insured) but some comprehensive policies insure you (not the named drivers) if you're driving the cars of your friends and family – with their permission, of course. Check with your insurer that you definitely have this extension of cover.

    You may also be covered to drive a loan car too but not if it is a hire car. However, it is important to know that if your comprehensive cover policy allows you to drive other vehicles, this is usually only up to the level of third party coverage – so no theft or fire damage cover is provided.

    Alternatively, if you're the generous sort, you can add other drivers to your policy – known as named drivers – and they'll be covered to drive your car. Even if you're not generous, adding a second responsible driver can also help lower the cost of your cover.

  • What's the difference between a no-claims discount and a no-claims bonus?

    Nothing. One is called no-claims discount and the other is no-claims bonus.

    Insurers like less-risky policyholders and will reward you if you're able to go a long time without reporting an accident or making a claim. So for every year you're accident or claim-free, your insurer usually gives you a reduction at renewal.

    The more years you can go without making a claim, the larger the discount will be at renewal. For instance, an insurer may give you a 30-40% reduction if you can go without claiming for the first year of your policy and then give you an extra 10% discount if you can repeat the trick in your second year.

  • Will I have a higher premium if I've modified my car?

    The more changes you make to your car, barring security ones, the more you're charged. Always tell your insurer about any modifications and whether you made them or not, or it may invalidate your policy (a modification is anything that isn't part of the standard vehicle specification, including factory-fitted optional extras such as alloy wheels).

    Even more savings are there for the taking if you can protect your vehicle by securing it. Fitting an alarm or immobiliser (especially one approved by Thatcham) will reduce the bill substantially.

  • How do I insure a company car in my name?

    Comparison sites always assume you own the car you're trying to insure. However, many people drive a car owned by their employer, but have to insure and tax it themselves.

    This means comparison sites, while useful for benchmarking prices, don't always do the trick. First, try a couple of specialists, then see how prices from the comparisons stack up.

    One insurer we could find that gives quotes online for vehicles owned by companies is LV*.

    Go through the quote process and it'll ask who owns the car. The quote you get will be based on this. This by no means translates to LV being the cheapest choice – but it's useful to get an idea of what you should be paying. Give us your feedback on LV.

  • What are my options if I only need temporary car insurance?

    Whether you just want to temporarily insure your own car, are borrowing a friend's car for the weekend or need to hire a vehicle to move house, it's possible to get temporary insurance for one to circa 28 days (and even up to 60 days).

    Most insurers will cover motorists between the ages of 18 and 75, however, some don't cover younger drivers and set the minimum age at 21. You may also find it difficult to find cover if you have many points on your driving licence or a long history of claims. 

    See our temporary car insurance guide for more help including insurers to try.

  • Should I get telematics (aka black box) insurance?

    Telematics policies have more aliases than a rap group. If you're looking at a 'black box policy', a 'smart box', or 'pay-as-you-drive' or 'usage-based' insurance then you're looking at a telematics policy.

    And with these types of policies, it's not just a case of keeping your hands at 10 and two and shifting smoothly through the gears. Insurers will take the following into account:

    • The time of day or night you drive (11pm to 5am may cost more)
    • Your speed (stick to the limit!)
    • Gentle braking reactions (hard and sharp stopping is NOT good)
    • Gentle acceleration and cornering (don't treat your local roads like Silverstone)

    Telematics providers will charge you more if you speed or start cornering like Max Verstappen. In addition, you won't earn rewards if you don't drive responsibly. With insurance so expensive, any money back on your cover should be an incentive in itself.
     

    How do insurers rate you on a telematics policy?

    The way a telematics insurer prices your premium really depends on how you drive. A device inside your car monitors your actions behind the wheel, so the better you drive, the less you should pay for a black box insurance policy when it falls due for renewal.

    So, during the course of the year, the black box feeds data back to your insurer, which takes this into account to reward you; if you can prove you're more Driving Miss Daisy than Fast & Furious, you can get money back on your premiums, high-street shopping vouchers or better prices at renewal.

    It may not be for everyone but it worked for forumite vic.star, who said: "I'm with Insure The Box, a telematics insurer. I paid £980 for my first year (I was 21 when I took out the policy) compared to the cheapest on comparison sites of £1,400!"

  • What effect does the excess have on my premium?

    Be careful when deciding your excess. The larger your voluntary excess, the lower the premium usually is, but a large excess may leave you out of pocket if you need to claim.

    The excess is the amount you pay towards any claims you make. Say your excess is £250 and you have an accident that causes £1,000 worth of damage to your vehicle, you pay £250 and the insurer stumps up the rest. 

    Insurers will usually offer you a lower premium for an increased voluntary excess, so try this when getting quotes. The downside is having to shell out this amount in the event of a claim (even if it is not your fault).

  • How can I estimate my annual mileage correctly?

    Insurers use this information to help them calculate your premium. The less you drive, the cheaper your insurance, so while you always need to give a genuine estimate to avoid committing fraud, it makes it doubly important not to overestimate as you'll also end up overpaying.

    The best method is to look at how much you've driven in the past using accurate data, and if your driving habits haven't changed, put the same figures down. If they have, change the figure accordingly. The easiest ways to find out your history is by looking back at old MOT certificates or service documents where your mileage would have been recorded – just compare one year with the next for how far you've driven.

  • Will an advanced driving course help me get cheaper car insurance?

    While not guaranteed, undertaking an advanced driving course CAN lower your car insurance premium – by up to 15% according to data from comparison website Confused.com.

    These courses – such as Pass Plus or RoSPA's Advanced Drivers and Riders scheme – teach motorists how to drive in various challenging situations, including in hazardous weather conditions and at night. Many car insurers therefore view certificate holders as safer drivers and are more willing to offer them lower insurance premiums.

    Do bear in mind that the cost of an advanced driving course may outweigh any savings you make on your car insurance policy, however.

Managing your policy

  • Do I need to notify my insurer of a change in circumstances?

    If any of your circumstances change it's important to tell your insurer. If you don't and then try to claim, even for an unrelated issue, your whole policy may be invalid.

    You should tell your insurer about any change, even if it's just your address. This is crucial as it reduces potential problems in the event of a claim. Trying to get insurance after you've had a policy cancelled is very difficult and expensive.

    A change in circumstances includes moving jobs, as insurers believe this can affect your risk. You may also save on insurance if you're in a stable relationship – for instance, living with a partner rather than being listed as single.

    And watch out for modifications. For example, putting a tow bar on your car to pull a caravan or trailer counts as a modification, so it's vital to let your insurer know you've got one. Most car insurance policies don't cover attaching a trailer as standard so double-check – some may charge you a slightly higher premium.

    See how to transfer car insurance for full help.

  • How do I make a change to my policy, and is there a fee?

    This depends on your insurer. Many let you make the changes online (such as Admiral, Axa and Direct Line), but not all of them do.

    You'll usually be charged for altering a policy, such as decreasing your annual mileage, adding or removing an additional driver or removing an 'added extra' such as key cover. 

    The fee you'll pay (and for which changes) will vary by insurer, but are typically between £10 and £30. You'll usually find changes made online are cheaper than calling. 

    If you're making a temporary change (such as a short-term reduction in mileage), bear in mind you may need to pay another fee to reverse the changes – so make sure you've calculated the admin fees against the savings you could make. 

  • Do I need to tell my insurer if I have a crash but don't claim?

    If you have an accident, no matter if you damage someone else's car or damage and still decide to cover the costs yourself, strictly speaking you should still tell your insurer about it.

    If you do have an accident and your insurer subsequently finds out about it, there is a chance it could result in higher premiums regardless as the insurer will consider you a higher risk.

    In addition, a problem may arise if you have an accident and it is found to be related to work undertaken for the first. If this does happen it would most likely result in the claim not being paid, rather than cancellation of your insurance or being reported for fraud, but could still end up costing you £1,000s. 

  • I'm using my car much less than I used to, can I save on my existing policy?

    Insurance is all about risk, so the more chance providers think you have of claiming, the more they charge. So driving more, or having higher risk drivers on your policy, will likely mean you pay more. 

    So reducing your estimated mileage can result in savings, though for any mid-policy changes you'll usually have to pay a £10-£30 admin fee, so you'd need to factor that in. 

    As an example, in our tests of 80+ quotes, the average saving dropping from 15,000 to 3,000 miles a year was £155/year – though this is just £13 saved if you've a month left on your policy. Similarly, dropping from 8,000 miles a year to 6,000 only saved an average £24 over the year – just £2/month. 

    It's potentially a bit of a faff, so you'll need to have many months left on your policy to make it worth it. The alternative is to look for a new policy, as big changes can mean another insurer is cheaper, and you may have been overpaying anyway.

  • How do I cancel my car insurance policy?

    A few insurers let you cancel online, but for most you'll need to call. If you're cancelling just before renewal, there'll be no charge.

    If you're partway through an annual policy, there's often an admin fee of about £50 to pay. However, you should be entitled to a part refund of the policy premium if you've paid upfront for an annual policy, provided you haven't claimed since it started. If you pay monthly, your insurer is likely to tell you to cancel your direct debit.

    Note that if you're switching insurers mid-policy you won't earn any no-claims bonus for the part of the year with your current insurer, so you'll usually need to be making a substantial saving to make this work. See how to cancel your car insurance for more info.

     

  • Is the email I got about MSE Compare+ and linking to Giftcloud legit or a scam?

    We have sent an email to a few people affected by technical gremlins in the Compare+ tool last week. If you got the email on 6 November 2023 and it links here, then don’t worry, you can safely use the other link to click to Giftcloud.

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