Car insurance costs have jumped 69% from £532 to £924 a year since March 2022, according to price comparison website Compare the Market.
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But one driver wrote to MoneySavingExpert (MSE) to say that she cut her car insurance bill by using one of Martin Lewis‘ hacks.
She said: “Thanks to your Compare+ tool, I saved nearly £2,000 this year.
“My renewal came in at £2,947, but I followed your guidelines and got a quote for £1,027.
“Then I remembered Martin’s advice about checking Direct Line, and it gave me a £1,946 saving.”
MSE’s Compare+ Car Insurance tool helps drivers to find a cheaper deal and potentially save hundreds or thousands of pounds.
It works by motorists filling in a form asking for basic details such as registration number and email address.
They then receive a quote based on prices compared on MoneySuperMarket.com.
The tool also offers drivers advice on other things they can do to reduce their quote, such as trying comprehensive cover and adding a responsible additional driver.
One thing to bear in mind is that the tool offers insurance prices based on just MoneySuperMarket.com’s website and not other price comparison websites.
But the site does then recommend if it’s worth you checking out Direct Line, which isn’t on comparison sites, to see if you could get a cheaper deal.
You should always check with at least three comparison websites before taking a quote.
Another savvy saver told The Sun how she slashed her car insurance bills by £120 and we shared more tips on how to beat rising premiums.
How to get cheap car insurance
CAR insurance is an essential cost that you hope to never use but will need to cover the costs of theft or damage to your vehicle.
It’s a legal requirement to have car insurance, and going without it could land you with a £300 fine, six penalty points on your licence and even a criminal conviction.
But there are several ways to slash your premiums.
Pay upfront
Insurers give you the choice of paying for insurance monthly or upfront.
Paying monthly spreads the cost of your cover but the insurer adds interest charges which means the average motorist pays around ten per cent more overall.
If you pay for your car insurance annually you don’t pay any interest.
A typical motorist can save up to £225 a year by paying in one go, according to comparison site MoneySuperMarket.
Increase your excess
The excess is what you agree to pay each time you need to make a claim on your policy.
You can usually choose your own excess when setting up a policy and it can be as low as £100 and as high as £500 or more.
The higher your excess, the lower your premium and vice versa.
This means you could bring the cost of your insurance down by agreeing to pay more if you do need to make a claim.
But before you hike your excess, make sure you would be able to pay in the event that you do need to make a claim.
Tweak your job
Certain jobs are seen as more risky than others for insurance purposes.
Making small but accurate changes to your job title can save you money.
For example, swapping your role from “chef” to “caterer” can save you £20, comparison site GoCompare found.
And changing your role from “fast food delivery driver” to “delivery driver” could save you £40.
But lying about your job could invalidate your policy so make sure any changes are legitimate and accurate.
Shop around
Not all comparison sites have the same range of insurers so to get the best price it’s a good idea to check two or three from Go Compare, Comparethemarket, MoneySupermarket and Confused.com.
Insurer Direct Line is also not on comparison sites so check its prices directly.
You can also get a free cash bonus by going via a cashback site such as Topcashback or Quidco.
Save the date
Renewing your car insurance sooner rather than later could save you some cash.
New cover becomes more expensive the closer you get to the renewal date.
But you can buy your car insurance up to 29 days before the policy start date and ‘lock in’ the price you’re quoted on that day.
A typical driver can save up to £265 buying new cover at least 27 days before their current policy ends, according to Go Compare.
OTHER CAR INSURANCE TIPS
There are other ways to slash the cost of your car insurance.
It could be a useful time to do something as well – industry insiders from One Sure Insurance say plenty of people across England are overpaying for their plans.
First, if you’re looking to switch deals, doing so early could see you save hundreds.
New policies arranged two or three weeks before a renewal date can often be much cheaper than if you wait and switch on the day they end.
Martin Lewis has called this period the “21-day rule”.
Second, you don’t have to just accept your renewal quote, if you already have a car.
While it might seem easier to go with what your provider has offered you, you could save hundreds by shopping around for new deals.
Third, you could tweak your job title, as insurers see certain professions as riskier than others and more likely to result in claims.
Of course, you shouldn’t lie about your profession but a simple change could see you save money.
One money blogger revealed how it could save you hundreds a year.
Fourth and finally, you could save money by paying for your insurance annually.
Paying monthly may be more convenient, but you’ll end up paying more overall.
So if you’ve got the money in the bank, paying up front will see you make some decent savings.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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