You needn’t be at renewal either, provided you haven't claimed, most policies can be cancelled with a refund; a few do charge penalties, but you’re still likely to save.
Step 1: Follow the DOs & DON'Ts
Insurance premiums (the payments you make to insurers) depend on three things:
By reducing an insurer's 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 that dictates what customers they want to attract. See the following for ways to reduce your risk:DO fit security and park or drive carefully
Any extra security will help; fitting an alarm or immobilizer (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 deterrent to theft and means accidental damage is less likely, resulting in a 3% - 7% drop in insurance costs.
Plus 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'll 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.
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 deterrent to theft and means accidental damage is less likely, resulting in a 3% - 7% drop in insurance costs.
Plus 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'll 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.
While it's likely third-party buyers are on average a higher-risk group, perhaps as overall 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 to £406 for third-party. This isn't a hard rule, but always check both.
It's generally the most suitable for those:
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 you car is. Many insurers will only offer fully comprehensive cover for higher value cars anyway.
There are a few ways of cutting the cost of fully-comprehensive cover. For example, Tesco Value insurance offers a comprehensive policy but has a higher compulsory excess, which lowers the cost. However, this doesn't automatically make it cheapest; ensure you first use the comparison sites above to check.
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.
While it's likely third-party buyers are on average a higher-risk group, perhaps as overall 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 to £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
- 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 has the additional cover of 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 you car is. Many insurers will only offer fully comprehensive cover for higher value cars anyway.
There are a few ways of cutting the cost of fully-comprehensive cover. For example, Tesco Value insurance offers a comprehensive policy but has a higher compulsory excess, which lowers the cost. However, this doesn't automatically make it cheapest; ensure you first use the comparison sites above to check.
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