In this guide
Best buy comparisons for you
Also see Motoring MoneySaving for 40+ tips to drive down motoring costs
Step 1: Follow the DOs & DON'Ts
Insurance premiums (the payments you make to insurers) depend on three things:
By reducing insurers' perception of your risk, you can reduce the price you'll pay.
Car insurance rates 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 act NOW if you're a man - get the price as a woman
All insurers must now follow the European Court of Justice's gender equalisation ruling. It means all things being equal, men and women must pay the same.
In the past, women typically paid �315/year less than men, with those under 20 paying �2,000 less. But this is no longer the case.
So, if you're a man, you could save �1,000s. Get a quote now and compare it against your last renewal, even if your next renewal's months away. It's less, consider cancelling and starting a new policy.
As long as you've not claimed, you'll get a pro-rata refund, but check and factor in any exit fees (approx �25-�50), and remember you won't earn any no-claims during that insurance year.
Use the system in this guide to hopefully beat your current price, or at least find the cheapest you can.
Don't forget to check if your photocard is valid
Photocard driving licences replaced paper ones in 1998, and under the new system you must renew your photo every 10 years. Yet in July 2011, 1.7 million photocard driving licences were out of date, according to the DVLA. For full info and how to renew, see the Is Your Driving Licence Valid? guide.
Do fit security and park or drive carefully
Any extra security will help. Fitting an alarm or immobiliser (especially one approved by Thatcham) will reduce the bill substantially.
Plus, as theft and accidental damage add a wedge to insurance costs, if you leave your car in a garage or driveway it's a big theft deterrent and means accidental damage is less likely.
The more points on your licence, the higher the cost. While speeding points remain on your licence for four years, insurers usually check for convictions during the last five before they are removed from your record.
One speeding conviction may only affect the price of cover by around 5% - but any more will bump up the price, with two offences costing around 20% more.
Being caught with a mobile phone is more serious, and can double your quote. It can also give you three instant points on your licence, which stay on for four years. Approved hands-free kits are fine if used properly.
DON'T assume third party's cheapest
Before we begin, it's important to understand that there are three different types of car insurance: third party, third party fire and theft, and fully comprehensive (full definitions below).
Logically, third party insurance should be cheapest as it offers a lesser level of cover than fully comp - yet this isn't always the case. So get quotes for third party and fully comp just in case it's cheaper. Plus always make sure you check your policy so you know exactly what you are and aren't covered for in the event of a claim.
It's likely third-party buyers are on average a higher-risk group, perhaps as insurers may feel they care less about their cars, and so prices are pushed up. To illustrate this, in one low-risk driver quote we found �290 for fully-comprehensive, compared with �406 for third-party. This isn't a hard rule, but always check both.
Third party
The minimum level of cover you need to legally be able to drive on the road is called third party. It used to be the cheapest type of insurance, but bizarrely fully comprehensive policies can now sometimes be cheaper.
Third party covers you for any damage you cause to another person's vehicle, and gives protection for any passengers in your car.
Therefore, if you're in an accident and it's your fault, you'll have to pay for any repairs to your own car yourself, as your insurance won't cover it. It may be more expensive because it's assumed you care less about your car and are therefore more likely to have an accident.
It's generally the most suitable for those:
- With cars worth less than �1,000
- Aged under 25 (though also read Car Insurance for Young Drivers)
- Without a no-claims bonus
- Living in a high risk area
Third party fire and theft
Third party fire and theft has the same level of cover as third party insurance. However, self-evidently, it also provides assistance if your car is stolen or set on fire.
Fully comprehensive
This is the widest level of cover, but can sometimes be the cheapest. The big advantage is that if you have an accident and it was your fault...
You'll be able to claim the cost of repairing your car, and cover personal injury costs, as well as those of other drivers.
The cover also includes accidental damage and vandalism, for example if somebody causes damage to your car when it is parked in the street and drives off.
Plus you'll usually (though not always, so do check your policy details carefully) be able to drive other people's cars if you have their permission, although this is likely to only be third party. Sometimes you'll be covered for driving hire cars too.
Fully comp is a good idea if your car is worth more than �1,500, and gets more important the more valuable your car is. Many insurers will only offer fully comprehensive cover for cars over a certain value anyway.
There are a few ways of cutting the cost of fully comprehensive cover. For example, Tesco Bank offers a comprehensive policy but has a higher compulsory excess, which lowers the cost. However, this doesn't automatically make it cheapest; so make sure you use the comparison sites below to check.
DO try adding a second responsible driver
If you've considered adding a second driver to the insurance, even if they won't use the car often, this can smooth out the average risk and sometimes reduce the premium. Those with an additional record for driving well are likely to help make bigger savings, but anyone that's in a lower risk category than you can help.
It won't always work, but it's worth playing with quotes to check.
At no point should you add your name as the main driver on someone else's car, such as one of your children, instead of them. This is known in the industry as 'fronting' and is fraud. When you come to claim, this will often be checked out and your insurance will be invalidated. It can lead to prosecution, so don't do it.
DON'T over-estimate your mileage
The less you drive, the cheaper your insurance may be. Where possible, try to reduce your mileage. This may sound trite, but actually the real key is incorporating the extra insurance cost when you make long journeys, not just the cost of petrol compared to taking the bus or train (also read the Cheap Trains guide).
Anecdotally, though many simply get a quote for 10,000 miles per year, MoneySavers have reported that 5,000 is the cheapest quote - but we haven't tested this. If you drive your vehicle on business, always declare this rather than just include the business miles as personal, or the policy may be void.
DO tell insurers about changes and special circumstances
If you haven't got normal circumstances, eg, you've made a claim in the past few years, have a modified car or expect to drive 100,000s of miles a year, tell the insurer. If you don't and then try to claim, even for an unrelated issue, your whole policy may be invalid.
Plus you should also 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 due to a fraudulent claim is very difficult, very expensive and will follow you for the rest of your life.
A change in circumstances includes moving jobs, as insurers believe this can affect your risk. Scandalously, the unemployed often (though not always) pay higher rates for their car insurance, so do inform your provider if you're out of work - but also do the full checks below to see where you can get the cheapest cover.
You may also save on insurance if you're in a stable relationship, ie, if you're living with a partner, rather than listed as single.
DON'T modify your car
Sexy it might be, MoneySaving it ain't. The more changes you make to your car, barring security ones, the more you'll be charged.
Always make sure you inform your insurer of any modifications to your car, 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.
DO work out how much you'd really claim for
It's worth considering going for a policy with a higher excess (the amount of any claim you need to pay yourself). Many people will find claiming for less than �500 of damage both increases the future cost of insurance and can invalidate no-claims bonuses, meaning it's not always worth making a claim.
So why pay extra for a lower excess? A few policies will substantially reduce premiums for a �1,000 excess, so try this when getting quotes. The downside of this is if you have a bigger claim you'll have to shell out more, so do take this into account.
DON'T be tempted to lie
With insurance, remember - the golden rule is:
If you've read these tips and thought, "it's easy to lie about this", then of course, you're right. Yet lying on your insurance form is fraud. It can lead to your insurance being invalidated and, in the worst cases, a criminal prosecution for driving without insurance. Don't do it.
DO try tweaking your job description or quote date
There's another quick tip to lower your costs: tweaking your job description could save you cash. Insurers decide prices depending on historic risk assessments, and your occupation plays an important part in this. To help, we've built a fun Car Insurance Job Picker tool to show the riskiest jobs and see if small tweaks to your job description could save you cash.
Prices change at different times of the month
Plus, there's a technique to see if you can get cheaper cover at different times of the month; although it's a little time-consuming. Run your quotes a month before renewal and click through to the cheapest three insurers' sites, making sure you save the quotes.
Some, although not all, hold their prices for up to 28 days. Then, nearer your renewal date, go back to check the price and buy if it's cheaper. If it's not, revert back to the saved quote.
DON'T forget car type impacts on insurance cost
The combination of popularity, engine size and value all impact on car insurance cost. It's worth considering this when you buy. Insuring a super-powerful beast of an SUV for a 17-year-old would cost enough to make Bill Gates weep.
DO try to protect your no-claims bonus
For every year you don't claim on the insurance policy, you get a discount. This makes a substantial difference to the overall cost. If you do claim, it's usually two years off this discount. This deliberately encourages people not to claim. You can also get a protected no-claims discount so that claims don't impact on it.
Remember though, if you do have an accident, even if you don't claim to keep your no-claims discount, the price of the policy can rise simply because you may be assessed as a higher risk in the future.
Some schemes also offer an accelerated no-claims bonus - you get a year's no-claims bonus after 10 months - such as Admiral's* Bonus Accelerator.
Switching from a company car to a private car
If you've been driving a company car and try to find private insurance online, it's tricky to find insurers who allow your no-claims bonus to count. A broker can help find an insurer which will allow a no-claims bonus to match the number of claim-free years you have been driving a company car.
Yet if you phone up, most companies will give some form of introductory or special bonus to those switching to a private car. These discounts are often applied manually as online systems don't automatically allow a discount.
Use the process below, then call the top three (or five) providers listed and discuss the issue.
DON'T think you'll pay the same by instalments
Beware pay monthly options - usually, the insurer actually just loans you the annual cost and then charges interest at hideous rates on top. So either pay in full, or if you can't afford it, use a credit card with a lower APR rate (or better still, a 0% credit card for spending, ensuring your repayments are big enough to clear it within a year).
Not all insurers are as bad as each other though. Here's what some of the big guns charge:
Insurer | APR if you pay monthly | Insurer | APR if you pay monthly |
---|---|---|---|
First Direct | 0% |
Co-operative | 18.5% |
Privilege | 29.4% |
Prudential | 20.3% |
M&S; | 23.5% | Churchill | 20% |
Sainsbury's | 20.2% | AA | 26.9% |
John Lewis | 28.5% |
Asda | 14.5% |
Axa | 25.9% | Hastings Direct | 29.9% |
RAC | 29.9% |
Aviva | 23.9% |
DO avoid saying you are unemployed if you aren't
If you're unemployed, you face the double whammy of no work and what can be a five-fold jump in insurance costs by declaring you're unemployed.
The same hikes don't apply to homemakers (housewives/house-husbands), so 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 which require you to seek work - otherwise, it's fraud.
Read the full MSE News story: Unemployed walloped with high insurance.
DON'T auto-renew - HAGGLE
It is now common that providers automatically renew unless you tell 'em - so TELL 'EM you don't want to auto-renew as soon as you take out the policy.
Auto-renewing will probably lead to you not getting the best deal. You'll also have lost your chance to haggle.
Remember, your renewal is a starting point to getting the best deal. Trying to move insurers even one day into renewal usually means you'll be hit with charges and fees.
Set up a Tart Alert and get quotes up to 90 days before renewal - to lock in that quote.
DO ensure you add temporary drivers the right way
You've got two options if you want someone else to drive your car, such as when one of your kids returns for Christmas:
- Add the driver temporarily to your existing policy.
- Get a new policy altogether, with them as a named driver.
Whichever option you go for, you are likely to pay an admin fee, whether to add another driver (from �15.75 to �50 on top of the premium increase to include the new person) or to cancel an existing policy (typically �25-�50).
Adding a young person to a policy for two weeks should typically cost between �70-�100, including admin charges. So do the maths and check your options, as costs can vary wildly depending on your circumstances.
Some insurers only allow you to add drivers for a set-defined period, say, for three days or two weeks.
Other options?
It's also possible to get temporary insurance for up to 28 days, with the bonus that it won't affect your existing policy, or ruin your no claims record if they have an accident. Try Insure Daily, Tempcover.com*, Confused.com* and the RAC.
What about a bus or a taxi?
Of course, there are alternative modes of transport. So if adding an extra driver is expensive, or they'll hardly use the car, think about saving the cash and pay for for a bus trip to where they have to get to. On the way back - you can always pay for their taxi.
Remember, it all depends on how often they will use the car so the thought of paying �50 to add them to the policy when they may only use it once or twice, is wasted money.
DON'T FRONT - IT'S ILLEGAL
At no point should you add your name as the main driver on someone else's car, such as one of your children.
This is known in the industry as 'fronting', and is fraud.
If you claim, this will often be checked out and your insurance will be invalidated and can lead to prosecution, so don't do it.
If they are the main driver, then they should be listed as that.
Watch the video guide
Courtesy of Channel 5. Originally from It Pays To Watch!
(Aired in January 2009)
Step 2: Correctly combine comparison sites
This is our new system, where we split the best buys section into different types of driver. We'd love your feedback on if it worked for you and if there's anything you would 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, but also factoring in user feedback. (See How the order is picked .)
We also carried out our own research in obtaining quotations, the speed, how informative the process is and what you need to look out for.
1. MoneySupermarket* Gets a cheap quote 76% of the time (in our sample)
-
Pros: Quickest to input. The total compulsory and voluntary excess clearly shown. Good option to compare policy covers. Simple filtering system. Sends confirmation email after.
-
Cons: Assumptions automatically completed. Windscreen excess not stated. Edit quotations function not clear. We were contacted by telephone within 60 seconds for not opting-out of marketing calls (and the opt-out option is not easy to find).
- Add feedback: MoneySupermarket
2. ...plus Confused.com*Increases chances of cheapest quote from sample to 88%
-
Pros: Good options to reduce the excess and clearly shows the total compulsory/voluntary excess. Simple filtering system. Until 9 Apr 2013, if you buy via Confused.com, you'll get 2,000 Nectar points.
-
Cons: Voluntary excess set at �250. Windscreen excess not stated and the option to edit quotations isn't clear or simple. Assumptions are pre-ticked. We were contacted by insurers after not opting-out.
- Add feedback: Confused.com
Check the big 'uns they miss ...
Aviva*: Buy online by the 31 Mar 2013 and you could get a discount of up to 20%. Also, get up to a third off with Aviva MultiCar when you add a second car.
Direct Line*: Worth trying as it does not appear on comparison sites. Quotations can be obtained up to 90 days ahead.
Top three samples likely to give a cheap quote 93% of time.
Takes 6 mins to obtain a quotation
try it*
3. ... plus TescoCompare* Increases chances of cheapest quote from sample to 93%
-
Pros: Good opt-out options across the Tesco range. Clearly shows cover provided and the additional premium to include add-ons such as breakdown, legal expenses or a courtesy car.
-
Cons: Assumptions automatically completed. Windscreen excess not stated. No 'edit quotation' function - you need to use the 'back' button. No filtering option. More 'no quotes' than quotes.
- Add feedback: TescoCompare
Top four samples likely to give a cheap quote 97% of time.
Approx time to get a quote:
7 mins
4. ...plus Gocompare* Increases chances of a cheap quote from sample to 97%
-
Pros: Clearly shows total compulsory and voluntary excess. Good function to customise quotes. Quotations page includes ticks showing the cover/add-ons provided. Option to compare up to four policies.
-
Cons: Voluntary excess defaults to �250, limited options to amend (down to �100 or up to �250). Windscreen excess not stated. Assumptions are pre-ticked. We were contacted by an insurer within 5 minutes of not opting out of being contacted.
- Add feedback: Gocompare
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 the following comparison sites if you have time - each takes around 5-10 minutes: Google* , Compare The Market* , QuoteZone*.
Young Drivers' Car Insurance has opened in a new tab
Driver with four or more points on their licence
If you've been caught once for an offence such as speeding, it's likely you'll have three penalty points on your driving licence. However, one strike doesn't change the order you should approach the comparisons. It's when you reach four points or more that you should change the way you act.
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, but also factoring in user feedback. (See How the order is picked .)
We also carried out our own research in obtaining quotations, the speed, how informative the process and end results are and what you should watch for. To find the cheapest in as little time as possible, combine the comparisons in the following order...
1. MoneySupermarket* Gets a cheap quote 83% of the time (in our sample)
-
Pros: Quickest to input. The total compulsory and voluntary excess clearly shown. Good option to compare policy covers. Simple filtering system. Sends confirmation email after.
-
Cons: Assumptions automatically completed. Windscreen excess not stated. Edit quotations function not clear. We were contacted by telephone within 60 seconds for not opting-out of marketing calls (and the opt-out option is not easy to find).
- Add feedback: MoneySupermarket
2. ...plus Google* Increases chances of a cheap quote from sample to 92%
-
Pros: Can provide quotes 40 days ahead. Clear display for opting into marketing calls. Clearly shows compulsory and voluntary excess. Quote page shows the cost of adding extras. Good function for customising/sorting quotes. Can compare up to four policies.
-
Cons: Windscreen excess not stated. If paying monthly, the service charge isn't stated within the initial quote..
- Add feedback: Google
Check the big 'uns they miss ...
Aviva*: Buy online by the 31 Mar 2013 and you could get a discount of up to 20%. Also, get up to a third off with Aviva MultiCar when you add a second car.
Direct Line*: Worth trying as it doesn't appear on comparison sites. Quotations can be obtained up to 90 days ahead.
3. ...plus Confused.com* Increases chances of a cheap quote from sample to 97%
-
Pros: Good options to reduce the excess and clearly shows the total compulsory/voluntary excess. Simple filtering system. Until 9 Apr 2013, if you buy via Confused.com, you'll get 2,000 Nectar points.
-
Cons: Voluntary excess set at �250. Windscreen excess not stated and the option to edit quotations isn't clear or simple. Assumptions are pre-ticked. We were contacted by insurers after not opting-out.
- Add feedback: Confused.com
Top four of sample likely to give cheapest quote 98% of time.
Takes 6 mins to obtain a quotation
try it*
4. ... plus TescoCompare* Increases chances of cheapest quote from sample to 98%.
-
Pros: Good opt-out options across the Tesco range. Clearly shows cover provided and the additional premium to include add-ons such as breakdown, legal expenses or a courtesy car.
-
Cons: Assumptions automatically completed. Windscreen excess not stated. No 'edit quotation' function - you need to use the 'back' button. No filtering option. More 'no quotes' than quotes.
- Add feedback: TescoCompare
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.
Plus try the following comparison sites if you have time - each takes around
5-10 minutes: Gocompare*, Compare The Market*, QuoteZone*.
Drivers who have made insurance claims in the past
When getting a quote, you'll usually be asked if you made a claim on insurance before - following an accident or other required repairs. If you've done this, it's very likely to push up the price you're quoted.
But even if you don't claim to keep your no-claims discount, the price of a policy can rise simply because you may be assessed as a higher risk in the future.
Step 1 - Combine the comparison sites in this order...
Comparison sites zip your details to 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 it's best 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, but also factoring in user feedback. (see How the order is picked .)
We also carried out our own research in obtaining quotations, the speed, how informative the process is and what you need to look out for.
1. MoneySupermarket* Gets a cheap quote 74% of the time (in our sample)
-
Pros: Quickest to input. The total compulsory and voluntary excess clearly shown. Good option to compare policy covers. Simple filtering system. Sends confirmation email after.
-
Cons: Assumptions automatically completed. Windscreen excess not stated. Edit quotations function not clear. We were contacted by telephone within 60 seconds for not opting-out of marketing calls (and the opt-out option is not easy to find).
- Add feedback: MoneySupermarket
2. ...plus Confused.com* Increases chances of a cheap quote from sample to 86%
-
Pros: Good options to reduce the excess and clearly shows the total compulsory/voluntary excess. Simple filtering system. Until 9 Apr 2013, if you buy via Confused.com, you'll get 2,000 Nectar points.
-
Cons: Voluntary excess set at �250. Windscreen excess not stated and the option to edit quotations isn't clear or simple. Assumptions are pre-ticked. We were contacted by insurers after not opting-out.
- Add feedback: Confused.com
Check the big 'uns they miss ...
Aviva*: Buy online by the 31 Mar 2013 and you could get a discount of up to 20%. Also, get up to a third off with Aviva MultiCar when you add a second car.
Direct Line*: Worth trying as it doesn't appear on comparison sites. Quotations can be obtained up to 90 days ahead.
Top three samples likely to give a cheap quote 92% of time.
Takes 6 mins to obtain a quotation
try it*
3. ... plus TescoCompare* Increases chances of cheapest quote from sample to 92%
-
Pros: Good opt-out options across the Tesco range. Clearly shows cover provided and the additional premium to include add-ons such as breakdown, legal expenses or a courtesy car.
-
Cons: Assumptions automatically completed. Windscreen excess not stated. No 'edit quotation' function - you need to use the 'back' button. No filtering option. More 'no quotes' than quotes.
- Add feedback: TescoCompare
Top four samples likely to give a cheap quote 96% of time.
Approx time to get a quote:
7 mins
4. ...plus Gocompare* Increases chances of a cheap quote from sample to 96%
-
Pros: Clearly shows total compulsory and voluntary excess. Good function to customise quotes. Quotations page includes ticks showing the cover/add-ons provided. Option to compare up to four policies.
-
Cons: Voluntary excess defaults to �250, limited options to amend (down to �100 or up to �250). Windscreen excess not stated. Assumptions are pre-ticked. We were contacted by an insurer within 5 minutes of not opting out of being contacted.
- Add feedback: Gocompare
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.
Plus try the following comparison sites if you have time - each takes around
5-10 minutes: Compare The Market* , Google*, QuoteZone*.
Step 2: Protect or BOOST your no-claims bonus
Not much help if you need to renew right now, but to ease the pain of future years, take some time to consider looking after your precious no-claims bonus.
For every year you don't claim on the insurance policy, you get a discount. This makes a substantial difference to the overall cost. If you do claim, you usually knock two years off this discount. The system deliberately encourages people not to claim.
There are two main options.
Pay for a protected no-claims bonus
The vast majority of insurers offer this. You pay more each year, but if you need to make a claim, it doesn't affect the discount you get. Be aware though, if you move to a different insurer in future, they may not honour the deal you had with you last one.
Accelerate how quickly you build up a no-claims bonus
The innovative Admiral* Bonus Accelerator policy gives you one year's no-claims bonus after just 10 months of being insured. This can speed up how quickly you hit the big discount territory.
However, always choose based on the price you pay now. Factoring in a slightly higher premium today for a reduced one in future is fine - but don't pay way over the odds, as the benefits in years ahead aren't guaranteed.
Drivers who want to insure multiple cars
If you've two or more vehicles in your household (vans could be included in this but bikes usually aren't), some providers offer discounts if you insure them all together. Comparison sites don't have the technology to do these searches, so you need to compare manually.
Step 1 - Get a benchmark multi-car quote
Admiral MultiCar insuranceGet up to 23% discount
Most multi-car discounts require you to get separate policies for each vehicle, but with Admiral* MultiCar, you buy one policy and it covers up to five different cars.
Usually, all the cars need to be registered at the same address though exceptions can apply (such as students who live away).
The discount increases depending on how many cars you want cover for.
Number of vehicles insured | Multi-car discount |
---|---|
2 |
Up to 10% |
3 |
Up to 14% |
4 |
Up to 23% |
5 |
Up to 23% |
Step 2 - Check each car separately on comparisons
Now's the time to use as many screenscrapers as you can, in the following order. Frustratingly you'll need to work through each car separately as they can't handle multi-car quotations. Once you've done that, add them all up and see if the total beats your quote from Admiral.
Screenscrapers 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, but also factoring in user feedback. (see How the order is picked ).
We also carried out our own research in obtaining quotations, the speed, how informative the process is and what you need look to out for.
1. MoneySupermarket* Gets a cheap quote 71% of the time (in our sample)
-
Pros: Quickest to input. The total compulsory and voluntary excess clearly shown. Good option to compare policy covers. Simple filtering system. Sends confirmation email after.
-
Cons: Assumptions automatically completed. Windscreen excess not stated. Edit quotations function not clear. We were contacted by telephone within 60 seconds for not opting-out of marketing calls (and the opt-out option is not easy to find).
- Add feedback: MoneySupermarket
2. ...plus Confused.com* Increases chances of a cheap quote from sample to 87%
-
Pros: Good options to reduce the excess and clearly shows the total compulsory/voluntary excess. Simple filtering system. Until 9 Apr 2013, if you buy via Confused.com, you'll get 2,000 Nectar points.
-
Cons: Voluntary excess set at �250. Windscreen excess not stated and the option to edit quotations isn't clear or simple. Assumptions are pre-ticked. We were contacted by insurers after not opting-out.
- Add feedback: Confused.com
Check the big 'uns they miss ...
Aviva*: Buy online by the 31 Mar 2013 and you could get a discount of up to 20%. Also, get up to a third off with Aviva MultiCar when you add a second car.
Direct Line*: Worth trying as they do not appear on comparison sites. Quotations can be obtained up to 90 days ahead.
Top three samples likely to give a cheap quote 93% of time.
Takes 6 mins to obtain a quotation
try it*
3. ...plus TescoCompare* Increases chances of cheapest quote from sample to 93%
-
Pros: Good opt-out options across the Tesco range. Clearly shows cover provided and the additional premium to include add-ons such as breakdown, legal expenses or a courtesy car.
-
Cons: Assumptions automatically completed. Windscreen excess not stated. No 'edit quotation' function - you need to use the 'back' button. No filtering option. More 'no quotes' than quotes.
- Add feedback: TescoCompare
Top four samples likely to give a cheap quote 97% of time.
Approx time to get a quote:
7 mins
4. ...plus Gocompare* Increases chances of a cheap quote from sample to 97%
-
Pros: Clearly shows total compulsory and voluntary excess. Good function to customise quotes. Quotations page includes ticks showing the cover/add-ons provided. Option to compare up to four policies.
-
Cons: Voluntary excess defaults to �250, limited options to amend (down to �100 or up to �250). Windscreen excess not stated. Assumptions are pre-ticked. We were contacted by an insurer within 5 minutes of not opting out of being contacted.
- Add feedback: Gocompare
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.
Plus try the following comparison sites if you have time - each takes around 5-10 minutes: Compare The Market*, Google*, QuoteZone*.
Step 3 - Check separate policies with the big insurers
Finally, a handful of insurers may give discounts if you open up multiple, but separate, car insurance policies with them for members of your household. Try as many of the following as you've time for
Churchill* gives up to up to 15% off first year, 5% in the second, online and via phone. |
Privilege* gives up to 10% off. |
Drivers with company cars registered in their 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 registered so they must insure and tax it themselves.
This means comparison sites, while useful for benchmarking, don't do the trick here. First, try a couple of specialists, then see how prices from the comparisons stack up.
LV* Online quotes for company-owned cars
The only insurer we could find which gives quotes online for vehicles owned by companies is LV*.
Go through the quote process and it'll ask who owns the car. Then the quote you get will based on this. This by no means translates to LV being the cheapest choice - but it's very useful to get an idea of what you should be paying.
Specialist brokers and insurersTime for phone-based legwork
This is a good time to look to the old-fashioned, pre-online comparison route - insurance brokers. They can only look at a smaller range of insurers - but they can also dig into the detail, and tell you if a policy covers company cars.
It's worth phoning up as many of the following as you can, and having a chat. It's free - they're paid via commission. Try: Adrian Flux, Alan Boswell, Giles Insurance, Endsleigh*, Swinton*, Footman James.
If your staying power isn't worn thin, to further hone the price, hit the phone again and talk to these insurers: AA*, Admiral*, Churchill*, Diamond, Direct Line*.
Use comparisons to see how good the price is
You won't be able to buy many of the policies you find, but it's a worthwhile exercise to check the final price you pay isn't wildly out of orbit.
Remember, comparisons don't all compare the same sites, so the best strategy's to combine them. We've analysed them, using a large range of monthly data, primarily focused on which ones produce the cheapest results, but also factoring in user feedback. (see How the order is picked .)
We also carried out our own research in obtaining quotations, the speed, how informative the process is and what you need to look out for.
1. MoneySupermarket* Gets a cheap quote 71% of the time (in our sample)
-
Pros: Quickest to input. The total compulsory and voluntary excess clearly shown. Good option to compare policy covers. Simple filtering system. Sends confirmation email after.
-
Cons: Assumptions automatically completed. Windscreen excess not stated. Edit quotations function not clear. We were contacted by telephone within 60 seconds for not opting-out of marketing calls (and the opt-out option is not easy to find).
- Add feedback: MoneySupermarket
2. ...plus Confused.com* Increases chances of a cheap quote from sample to 87%
-
Pros: Good options to reduce the excess and clearly shows the total compulsory/voluntary excess. Simple filtering system. Until 9 Apr 2013, if you buy via Confused.com, you'll get 2,000 Nectar points.
-
Cons: Voluntary excess set at �250. Windscreen excess not stated and the option to edit quotations isn't clear or simple. Assumptions are pre-ticked. We were contacted by insurers after not opting-out.
- Add feedback: Confused.com
Check the big 'uns they miss ...
Aviva*: Buy online by the 31 Mar 2013 and you could get a discount of up to 20%. Also, get up to a third off with Aviva MultiCar when you add a second car.
Direct Line*: Worth trying as they do not appear on comparison sites. Quotations can be obtained up to 90 days ahead.
Top three samples likely to give a cheap quote 93% of time.
Takes 6 mins to obtain a quotation
try it*
3. ...plus TescoCompare* Increases chances of cheapest quote from sample to 93%
-
Pros: Good opt-out options across the Tesco range. Clearly shows cover provided and the additional premium to include add-ons such as breakdown, legal expenses or a courtesy car.
-
Cons: Assumptions automatically completed. Windscreen excess not stated. No 'edit quotation' function - you need to use the 'back' button. No filtering option. More 'no quotes' than quotes.
- Add feedback: TescoCompare
Top four samples likely to give a cheap quote 97% of time.
Approx time to get a quote:
7 mins
4. ...plus Gocompare* Increases chances of a cheap quote from sample to 97%
-
Pros: Clearly shows total compulsory and voluntary excess. Good function to customise quotes. Quotations page includes ticks showing the cover/add-ons provided. Option to compare up to four policies.
-
Cons: Voluntary excess defaults to �250, limited options to amend (down to �100 or up to �250). Windscreen excess not stated. Assumptions are pre-ticked. We were contacted by an insurer within 5 minutes of not opting out of being contacted.
- Add feedback: Gocompare
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.
Plus try the following comparison sites if you have time - each takes around 5-10 minutes: Compare The Market*, Google* , QuoteZone*.
Drivers over 60
Getting a cheap price is about asking the right people. 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.
Below we list the comparisons most likely to give you the cheapest price (See How the order is picked ), then tell you which insurers they miss to add in on top, including specialist cover for over-60s.
1. Gocompare* Gets a cheap quote 83% of the time (in our sample)
-
Pros: Clearly shows total compulsory and voluntary excess. Good function to customise quotes. Quotations page includes ticks showing the cover/add-ons provided. Option to compare up to four policies.
-
Cons: Voluntary excess defaults to �250, limited options to amend (down to �100 or up to �250). Windscreen excess not stated. Assumptions are pre-ticked. We were contacted by an insurer within 5 minutes of not opting out of being contacted.
- Add feedback: Gocompare
2. ...plus MoneySupermarket* Increases chances of a cheap quote from sample to 93%
-
Pros: Quickest to input. The total compulsory and voluntary excess clearly shown. Good option to compare policy covers. Simple filtering system. Sends confirmation email after.
-
Cons: Assumptions automatically completed. Windscreen excess not stated. Edit quotations function not clear. We were contacted by telephone within 60 seconds for not opting-out of marketing calls (and the opt-out option is not easy to find).
- Add feedback: MoneySupermarket
Check the big 'uns they miss ...
Aviva*: Buy online by the 31 Mar 2013 and you could get a discount of up to 20%. Also, get up to a third off with Aviva MultiCar when you add a second car.
Direct Line*: Worth trying as it doesn't appear on comparison sites. Quotations can be obtained up to 90 days ahead.
The following providers, which are designed for also don't appear on comparison sites, are designed for the over-50s and are worth a few moments of your time....
Age UK: No upper age limit applies. You also have the option to pay by monthly instalments, interest-free.
Castle Cover: Uses a panel of insurers to get the best deal and the option to add additional extensions, such as breakdown and legal expenses.
- Brokers can help if you are finding it difficult to organise a cheap quote online. 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).
- Consider a telematics policy. If you don't drive many miles, and they're mainly off-peak, consider Coverbox*, which sets premiums based on usage. If age has brought you a chilled-out driving style, AA Drivesafe has a 'pay how you drive' policy.
Also, always remember to tell your insurer information they should be aware of - otherwise, it might say you�re not covered. For older drivers, this particularly includes medical conditions. So if you take tablets for your blood pressure, or anything similar, ensure you tell �em.
3. ...plus Google* Increases chances of a cheap quote from sample to 96%
-
Pros: Can provide quotes 40 days ahead. Clear display for opting into marketing calls. Clearly shows compulsory and voluntary excess. Quote page shows the cost of adding extras. Good function for customising/sorting quotes. Can compare up to four policies.
-
Cons: Windscreen excess not stated. If paying monthly, the service charge isn't stated within the initial quote..
- Add feedback: Google
4. ...plus Confused.com* Increases chances of a cheap quote from sample to 98%
-
Pros: Good options to reduce the excess and clearly shows the total compulsory/voluntary excess. Simple filtering system. Until 9 Apr 2013, if you buy via Confused.com, you'll get 2,000 Nectar points.
-
Cons: Voluntary excess set at �250. Windscreen excess not stated and the option to edit quotations isn't clear or simple. Assumptions are pre-ticked. We were contacted by insurers after not opting-out.
- Add feedback: Confused.com
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.
Plus try the following comparison sites if you have time - each takes around
5-10 minutes: TescoCompare*, Compare The Market*, QuoteZone*.
Based on a full survey carried out roughly every month, last done in Feb 2013 using Jan 2013 data.
We compare quotes from Compare The Market, Confused.com, Gocompare, Google, MoneySupermarket and TescoCompare.
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 FSA 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 FSA."
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 the Insurance 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 2 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 from Coverbox* 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 drivers under 30 �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
Its 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.
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Step 4: Grab hidden cashback & discounts
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.
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 some retailers and financial services providers. In other words 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.
Those new to cashback sites should ensure they read the Top Cashback Sites guide for pros and cons before using them. Otherwise use the Cashback 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 - 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 will get free breakdown cover for the first year if you're a new customer. |
Aviva* offers up to 20% off your premium if you buy online by the 31 Mar 2013. Also, get up to a 1/3 off with Aviva MultiCar when you add a second car |
Insurance broker Be Wiser offers free RAC membership for policies bought via its website. |
Buy a new Churchill* motor policy by 31 Mar 2013, and you are guaranteed a free hire car during the first year of your policy. This only applies to loss claims in the UK (and excludes windscreen claims). |
Until 9 Apr 2013, if you buy via Confused.com*, you'll get 2,000 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. |
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. |
Nectar cardholders who buy a Sainsbury's* comprehensive motor policy by 4 Apr 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. |
Until further notice, if you buy a motor policy from Swinton*, and enter the code PMWTDR663, you'll get �40 cashback. |
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.
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).
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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.
Car insurance Q&A;
I'm not driving my car for a bit, does it need to be insured?
Yes - legally cars must be insured unless declared off-road, unless they have been untaxed since January 1998. The Continuous Insurance Enforcement scheme, which came into force in January 2011, means all cars must be insured - even if no one drives them. It aims to crack down on uninsured drivers by matching up the database of cars with insured drivers.
The only way out is to apply for a Sorn (Statutory Off Road Notification) declaring your car will never be driven. Make sure you search for the new cheapest in advance of renewal, or you'll end up just auto-renewing to stop the fine. See Gov.uk for how to do this.
Am I covered to drive others cars on my insurance?
If your insurance allows it, driving someone else's car instead of yours can be a way to cut mileage. Check your policy details carefully to find out if you can.
If you have fully comprehensive insurance then sometimes, not often, it includes 'driving other cars' cover. This provides you with third-party cover whilst reducing your mileage and therefore the cost of your own policy. Check with your insurance provider whether you're covered.
Would it be cheaper for me to just get a motorbike instead?
Generally, insurance is a lot cheaper for a moped or motorbike than for a car. Plus, some insurers may put any no claims bonus from bike insurance onto your car insurance too if you later get your car insured with them. But do take safety into account - if you're in an accident, you're much more protected if you're in a car. See the Bike Insurance guide for more.
What's the difference between a screenscraper and a broker?
Brokers and screenscrapers may seem like they're doing a similar job, as each search a number of different insurers. But they're radically different beasts. A good analogy for this is to compare it to searching for the cheapest loaf of bread.
Individual insurers are like bakers, your choice is simply to buy its cheapest loaf that suits.
Brokers are like supermarkets; they stock a range of bakers' loaves and the price charged depends on their relationships with suppliers.
Screenscrapers are like sending someone round supermarkets and bakers to note all their prices.
Must I Tell my insurer if I have an accident but don't claim?
If you have an accident and damage someone else's car, but decide to cover the costs yourself, strictly speaking, you should still tell your insurer about it.
Many don't, thinking it will increase premiums. But a problem may arise if you have a second accident and it is found to be related to work undertaken for the first. If this does happen it would most likely result in non-payment of the claim, rather than cancelling the insurance or being reported for fraud, but could still end up costing you �1,000s.