In this guide
Step 1: Follow the DOs & DON'Ts to get cheap car insurance.
Insurance premiums (the payments you make to insurers) depend on three things:
Reducing insurers' perception of your risk can cut the price you pay.
Car insurance rates, and other insurances, are set by actuaries, whose job is to calculate risk. Each insurer's price depends on two things: their underwriters' assessment of your particular risk focus, and then their own pricing model which dictates what customers they want to attract. See the following for ways to reduce your risk:
DO FIT SECURITY AND PARK OR DRIVE CAREFULLY
DON'T FORGET TO CHECK IF YOUR PHOTOCARD IS VALID
DO SEE IF YOU CAN SAVE IF YOU'RE A MAN - EVEN IF NOT AT RENEWAL
DON'T ASSUME THIRD PARTY'S CHEAPEST
DO TRY ADDING A SECOND RESPONSIBLE DRIVER
DON'T OVER-ESTIMATE YOUR MILEAGE
DO TELL INSURERS ABOUT CHANGES AND SPECIAL CIRCUMSTANCES
DON'T MODIFY YOUR CAR
DO WORK OUT HOW MUCH YOU'D REALLY CLAIM FOR
DON'T BE TEMPTED TO LIE
DO TRY TWEAKING YOUR JOB DESCRIPTION
DO CONSIDER PROTECTING YOUR NO-CLAIMS BONUS
DON'T THINK YOU'LL PAY THE SAME BY INSTALMENTS
DO AVOID SAYING YOU ARE UNEMPLOYED IF YOU AREN'T
DON'T AUTO-RENEW - TO AVOID RENEWAL FEES
DO ENSURE YOU ADD TEMPORARY DRIVERS THE RIGHT WAY
DON'T FRONT - IT'S ILLEGAL
Step 2: Correctly combine comparison sites
Tell us what you think: This is a new system, including ratings based on the quality of the experience on comparisons. We'd love feedback on if it worked and anything you'd change.
Driver over 25, with no claims, 3 points or fewer
Comparison sites zip your details to hosts of insurers' and brokers' websites, scraping their data off the screens to report back the cheapest. So be aware they often feed your personal details to insurers.
They don't all compare the same sites, so the best strategy's to combine them. We've analysed the comparison sites, using a large range of monthly data, primarily focused on which ones produce the cheapest results.
However, as well as the price data, we have also conducted separate research to see if quotes from comparisons match up to the prices on insurer’s own websites, how consumer-friendly the quote process is, and the speed at which the comparison delivers results. These have been fed in to help us decide the best to use (see How the order is picked ) :
try it*1. MoneySupermarket*Gets a cheap quote 78% of the time (in our sample)
Plus a quality rating of 6/10 in our survey of 'soft features'
- Price for add-ons clearly displayed: Yes
- Received marketing calls when requested not to: No
- Prices quoted match insurer's site: 50/50
- Excesses match what was asked for: No
- Tick-box for marketing calls: Opt-out
- Add feedback: MoneySupermarket
try it*2. ...plus Confused.com*Increases chances of cheapest quote from sample to 89%
Plus a quality rating of 6/10 in our survey of 'soft features'
- Price for add-ons clearly displayed: Yes
- Received marketing calls when requested not to: No
- Prices quoted match insurer's site: 50/50
- Excesses match what was asked for: No
- Tick-box for marketing calls: Opt-out
- Add feedback: Confused.com
Check the big 'uns they miss ...
Aviva*: Buy online and get a discount of up to 20%. Also, get up to a third off with Aviva Multi Car when you add a second car.
Direct Line*: Worth trying as it doesn't appear on comparison sites. Also, see Direct Line Together* for details on getting 10% off every car, or any other Direct Line product, in your household. Quotes can be obtained up to 90 days ahead.
Top three samples likely to give a cheap quote 92%of time.
Approx time to get a quote:
7 mins
7 mins
try it*3. ...plus Google*Increases chances of a cheap quote from sample to 92%
Plus a quality rating of 7/10 in our survey of 'soft features'
- Price for add-ons clearly displayed: Yes
- Tick-box for marketing calls: Opt-in
- Received marketing calls when requested not to: No
- Prices quoted match insurer's site: 50/50
- Excesses match what was asked for: No
- Add feedback: Google
try it*4. ...plus Comparethemarket*Increases chances of a cheap quote from sample to 94%
Plus a quality rating of 6/10 in our survey of 'soft features'
- Price for add-ons clearly displayed: Yes
- Tick-box for marketing calls: Opt-in
- Received marketing calls when requested not to: No
- Prices quoted match insurer's site: 50/50
- Excesses match what was asked for: No
- Add feedback: CompareTheMarket
Total...(close to) 100% chance of cheapest quote, based on insurers comparison sites cover.
5. Boost chances to nearly 100%Try to really nail down all the quotes
If you still haven't found a deal you're happy with, or want to push the envelope, there are some more options to try.
Try these comparison sites if you have time - each takes around 5-10 minutes: Tescocompare*, Gocompare*, QuoteZone*.
Based on a full price survey carried out roughly every month, last done in May 2013 using April 2013 data, and also a separate quarterly qualitative survey, last carried out in April 2013.
Always double-check the policy terms
Once you've found the cheapest quotes from the screenscrapers, make two important checks:
- Double-check the quotes
Click through to the insurance provider's own website to double-check the quotes, as to speed up searches some comparison sites make a few assumptions (see what to check). - Examine the policy's coverage
Check whether it's suitable. If you want free car hire if your car is being fixed, is it included?
While you're there, it's worth playing with the policy details to see if you can finesse the price down. Look at the excess, and whether adding drivers cuts the cost.
This tool from Find allows you to check two different policies, side by side.
What happens if my insurer goes bust?
Insurance providers regulated in the UK are covered by the same Government-backed Financial Services Compensation Scheme (FSCS) as banks, meaning if they go into default, you're protected.
Comparison sites include many providers, the vast majority of which are regulated, but always check yourself if you're concerned.
A number of insurers are based in Gibraltar. However, a special Financial Conduct Authority rule says these policies have the same protection as those from UK-based insurers. Specifically: "The UK requires all EEA (European) insurers... to participate in the FSCS in the same way as all insurers that are directly authorised by the FCA."
A number of insurers are based in Gibraltar. However, a special Financial Conduct Authority rule says these policies have the same protection as those from UK-based insurers. Specifically: "The UK requires all EEA (European) insurers... to participate in the FSCS in the same way as all insurers that are directly authorised by the FCA."
In the unlikely event a regulated insurer does go bust, the FSCS will try to find another provider to take over or issue a substitute policy. However, if you've ongoing claims, or need to claim before a new insurer is found, the FSCS should ensure you're covered. For more, see theinsurance section of the Savings Safety guide.
Step 3: Check special policies
Once you've tried the comparison sites, it's worth trying these extra ways to see if they undercut your best price.
LOCK-IN QUOTES UP TO 2 MONTHS AHEAD
Some insurers will hold the price of the quotation for up 60 days. This means that if you obtain a quote two months before your renewal is due, you've locked in a price in case premiums rise in the near future.
Aviva* will hold prices for 60 days, while Direct Line*and Post Office* give quotes valid for 30 days. Remember, the prices are fixed subject to you not changing any of your details. Set up a Tart Alert to remind you when it's going to expire.
'Black box' technology
The following involve a tracking device being fitted to the vehicle which gathers information on the number of miles covered, when the vehicle is being driven and/or the driving style.
It's not just young drivers who could benefit. If you're a careful driver, who doesn’t cover many miles and drives during off-peak hours, you could see a reduction in your premium.
Due to the non-conventional nature of these policies, getting a firm price will often involve getting a calculator out.
PAY WHEN YOU DRIVE
The tracking device monitors when you drive - so the more you drive, the more you pay (of course, it's also likely to depend on your risk profile).Coverbox. A 'pay as you drive' scheme fromCoverbox* has per-mile charges that vary according to the time of day or night you drive.
Low-mileage drivers can cut costs, especially if you don’t drive at night (11pm-5am) when costs per mile jump. While not specifically for young drivers, at times it offers some under-30s £50 cashback (details will be on your quote if you qualify).
iKube. Alternatively, iKube* is aimed at 17-25 year olds who don't often drive between 11pm and 5am. There's an extra fee for driving outside the set hours, making the cost prohibitive if you do so.
Insure The Box. With Insure The Box, you can pick either a 6,000 or 8,000 mile per year policy for your premium, and then you can earn extra miles by driving safely - or buy more online if you need to during the year.
PAY HOW YOU DRIVE
Here, GPS or tracking devices monitor how you drive. Of course, even then, the price still depends on your personal risk profile.
AA. The AA recently launched Drivesafe, a pay-how-you-drive policy. By using GPS technology, it considers four factors called Speed, Anticipate Traffic, Follow the Landscape and Where & When.
Based on these factors, and a few more, your premium could adjust accordingly. You can check your Drivesafe score and reports through a "driving dashboard".
The Drivesafe box also doubles up as a theft-tracking device.
TRY A LOCAL BROKER
Some drivers, including those in areas of high crime or with lots of penalty points, can find it incredibly difficult to find cheap insurance cover as they are considered too high a risk. Try speaking one-on-one to a local insurance broker about your individual circumstances to see if they can find you a decent policy (search on the British Insurance Brokers Association website).
TEMPORARY CAR INSURANCE
It's possible to get temporary insurance for one to 28 days, such as to to drive a friend's car, protecting their policy and no claims bonus.
Insure Daily, Tempcover.com*, Confused.com* and the RAC offer policies.
Insure Daily, Tempcover.com*, Confused.com* and the RAC offer policies.
Step 4: Grab hidden cashback, discounts & haggling
By now you'll know the cheapest available provider. However you may be able to cut the cost even further.
The top cashback deals
Once you know who your cheapest provider is, you need to check there aren't any hidden cashback deals, as these can be as high as £100.
If your second or third cheapest quotes weren't too much more expensive, see if cashback's available for them too, and find the overall winner.
If your second or third cheapest quotes weren't too much more expensive, see if cashback's available for them too, and find the overall winner.
The step-by-step list below takes you through a variety of options to improve your deal.
CHECK 1: CASHBACK WEBSITES
These sites carry paid links from retailers and financial services providers. If you click through them and get a product, they get paid. They then give you some of this cash, which means you get the same product, but a cut of its revenue.
Don't choose based only on cashback, see it as a bonus once you've picked the right cover.
If you're new to cashback sites, make sure you read the Top Cashback Sites guide for pros and cons before using them. 
Otherwise, use theCashback Sites Maximiser tool to find the highest payer for each insurer.
Otherwise, use theCashback Sites Maximiser tool to find the highest payer for each insurer.
Things you need to know before doing this...
- Never count the cash as yours until it's in your bank account. This cashback is never 100% guaranteed. There can be issues with tracking and allocating the payment, plus many cashback sites are small firms with limited backing, and you've no protection if anything happens to them.
- Withdraw the cashback as soon as you're allowed. Money held in your cashback site account has no protection at all if that company goes bust, so always withdraw it as soon as you're eligible.
- Clear your cookies. While it shouldn't be a problem, if you've used comparison sites beforehand, there is a minor risk that the cashback may not track due to cookies on your computer - so it's good practice to clear those first (read About Cookies).
CHECK 2: GET CASHBACK VIA COMPARISON SITES
If cashback sites don't list your insurer, try a comparison site that pays cashback if you compare then get a policy via their sites.
MoneyExpert pays £25 (although currently its sister, SimplySwitch*, is topping the offer up to £40 if you go via its site and enter the code SIMPLYCAR).
Again though, it's more important to get the right policy than a bit of cashback, so ensure that first.
However, you must make sure you tick all the right boxes to claim this cashback, and understand that the comparison sites pay this bonus directly - not the insurers - so you are reliant on their ability to pay. Please read the quick cashback section above for full pros and cons.
CHECK 3: SPECIAL DEALS
If you can't get cashback it's worth noting a few companies have special deals not always mentioned by comparison services. These currently include (listed alphabetically):
If buy a motor policy via the AA*, you'll get free breakdown cover for the first year if you're a new customer.
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Aviva* offers up to 20% off your premium if you buy online.
Also, get up to a third off with Aviva Multi Car when you add a second car. |
Insurance broker Be Wiser offers free RAC membership for policies bought via its website.
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If you buy via Confused.com*, you'll get 1,000 Nectar points. A claim form needs to be completed within 60 days of taking out the policy to validate your points. Other T&Cs apply.
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New customers who buy a John Lewis* motor policy online can get up to 10% off the premium.
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If you have a NatWest current account, you'll get a 15% discount for taking out a new car insurance policy. If you're already a NatWest home insurance customer, you'll get a further 10% off.
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Nectar cardholders who buy a Sainsbury's* comprehensive motor policy by 3 Jun 2013 can save up to 33% on the premium and get double Nectar points for two years on shoping and fuel. See the T&Cs for more details.
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Until further notice, if you buy a motor policy from Swinton*, and enter the code PMWTDR663, you'll get £40 cashback.
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LATEST CAR INSURANCE NEWS
- Car insurance costs fall25 April 2013
- Consumers protected as insurance law reform begins8 April 2013
- Car insurance costs down but younger women pay more30 January 2013
- Insurance costs up for some as gender ruling takes effect21 December 2012
SEE ALL NEWS TAGGED 'CAR INSURANCE'
Haggle on your car insurance!
The car insurance market is very competitive and companies are desperate to retain business - so never just auto-renew.
Insurers love auto-renewals. It's a fine for apathy where they hoick the premium knowing you'll pay. If the policy has automatically renewed, getting out of it usually means charges and fees, so don't get caught out.
Once you've got your overall cheapest price, get on the phone and try to haggle as your renewal is a starting point. There's often massive price flexibility, but be fully armed with the screenscrapers' cheapest quotes and any available cashback first.
The first port of call should be your existing insurer. If it can beat or even match the best quote it saves the hassle of switching policy. If that doesn't work and you're still in the mood, take it to a broker.
For more haggling tips, read the full Haggle On The High Street guide together with 2013's Top 10 Firms To Haggle With.
Step 5: Remember next year
Fortunately, providing you drive well and don't have any accidents, your insurance premium should get cheaper after the first year. However, don't automatically stick with the same provider - it may not still be cheapest.
Apply for cover from your existing insurer as a new customer and its likely you'll be given a cheaper price. This is because car insurers, like any firm, will happily profit from apathy if they can.
Insurers must send out renewal notifications at least 28 days before renewal. This doesn't leave much time, and you can end up rushing to find a cheaper price.
To avoid being forced to decide quickly, put a warning in your diary six weeks before your renewal date, so there's plenty of time to sort out a new provider. Alternatively, use the free Tart Alert which sends a reminder text or email.
Get paid to be a mystery shopper
You could also sign up to Consumer Intelligence, a consumer research company, which pays several hundred people a month near renewal up to £50 to carry out comparisons.
Importantly, you don't need to buy insurance from any of the companies you've contacted. See the It's a Mystery forum thread for full details.
The current record result
This technique often produces huge savings. Those who normally just accept their insurers' renewal regularly see £100s shaved off the cost. And significant numbers of MoneySavers report getting deals for under £100.
The record: 96p for a year's fully comprehensive cover
In October 2009, civil servant and grandmother Barbara Wakerell smashed the old £14 record for using this car insurance system (see MSE News: 96p car insurance).- Policy Price: For Barbara, the cheapest was £120.96 from Swinton Insurance for a fully comprehensive policy, with protected no claims bonus, and including a courtesy car.
- Insurer cashback: The company had its own £70 cashback promo on.
- Cashback site: She then got a further £50 via using a cashback site.
All added together, that meant the total cost of the insurance was just 96p. She said: "I'm always looking for a bargain so when I found my car insurance for £120.96 I thought I was doing well. But when I also got £120 cashback I realised I had done really, really well. Can anyone beat that?"
Have you used this guide's techniques to save? If so, please tell us in the Car Insurance Super Deals forum discussion.
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