Times have changed for many car-owners. With the new normal of working from home, it makes car insurance renewal an even more bitter pill to swallow. 

The reality is most people will keep up with car maintenance and MOTs, and just benefit from low mileage and fuel costs for the time being. 

That said, there are always ways to get cheaper car insurance. Whether it’s shopping around for the best insurance price, cutting back on unnecessary add-ons, modifying how you drive or opting for the relatively new data-collecting telematics policy.

  1. Shop around and compare car insurance online

Shopping around when your insurer sends their annual text or email about your renewal quote is made so easy with comparison website companies like, www.moneysupermarket.com and www.confused.com.  

Insurers rarely offer their best deals to existing customers and focus their cheapest-as-possible premiums on gaining new business.

By becoming “the new customer” and switching insurers, it can sometimes save you a decent amount of money.  Just remember, make sure you’re comparing like for like cover.

  1. The higher the excess the lower the premium – normally. 

Generally, the higher your excess, the lower your premium – experiment with comparison tools on the aforementioned websites to see how much difference an increased excess could make to your annual insurance.  That said, if you up your excess, make sure you are able to afford it, in case you need to make an insurance claim.

  1. Don’t be sucked in on the “value-added” benefits 

Think carefully before adding extras to your car insurance package. While insurers love the take-up of these seemingly good-value add-ons: legal expense cover, windscreen cover or a courtesy car, they are not necessary and too many add-ons could considerably bump up the price of your policy. 

  1. Seek the rewards from your driving habits 

If you fall into one of the high-risk groups, you’re likely to be looking at high premiums to insure your car.  With a telematics policy (or, Black Box insurance) you are sending your driving data to your insurer for marking and they will score you on how safe you are, by analysing when and where you drive and also your driving style. From this data you get a truly personalised, cheaper insurance price. 

Alternatively, talk with your insurer and see if it’s possible for you to agree to a lower annual mileage cap – this might save you money too. This is a great tip for two-car families, where one vehicle is likely to do more miles in a year than the other.

Also Read: Telematics, also known as Black Box

  1. Don’t pay Premium Finance that charges interest. 

Many insurance companies charge interest when customers opt to pay for their insurance monthly, or it’s premium finance from a third-party where the full insurance policy amount is being borrowed, therefore your insurer / third-party may run a credit check before they agree that you can pay monthly.

If your insurer’s policy is to charge interest, but you would like to spread the cost of your cover for free, you might want to consider using a 0% credit to pay for it (credit card, paypal, etc.). Just be careful to clear your balance before the 0% period ends.

Also Read: What is Premium Finance?