7 Simple TRICKS to Slash Your Car Insurance Costs Now

As car insurance rates in the UK continue to rise, with a 33% increase in 2024 compared to the previous year, it’s crucial to find ways to reduce your premiums. While costs vary based on factors like age, vehicle type, and location, there are several effective steps you can take to lower your monthly payments. Drawing on insights from insurance experts Zego, here are seven practical strategies to help you cut down your car insurance costs.

Our tips offer practical, proven methods—backed by data and real-world examples—that can make a tangible difference in your readers’ wallets.

1. Reduce Your Annual Mileage

A simple yet effective way to lower your car insurance is to drive less. It’s like reducing the wear on your shoes—fewer miles means less exposure to risk, and insurers respond by lowering your premiums. For example, if you reduce your mileage from 15,000 to 8,000 annually, you could see significant savings.

“Insurance companies calculate risk based on how much you’re on the road. Fewer miles mean fewer chances of an accident, which translates into reduced costs,” explains our pricing team. Be honest when estimating your mileage. Overestimating leads to higher premiums, while underestimating could invalidate your policy when you need it most.

2. Add a Named Driver

If you’re a new driver or have a high-risk profile, adding an experienced driver to your policy can be a game-changer. It’s like having a co-pilot—you’re sharing the risk, which often leads to lower premiums. For example, a new driver adding a parent with decades of accident-free driving experience could see their premium drop by hundreds of pounds.

“Adding a seasoned driver helps balance the perceived risk. Just ensure the main driver is listed correctly to avoid ‘fronting,’ which is considered fraud and could invalidate your insurance,” warns our team.

3. Opt for Higher Voluntary Excess

Boosting your voluntary excess—essentially the amount you’re willing to contribute in the event of a claim—can reduce your monthly premiums. It’s like agreeing to take on more of the load yourself; the insurer then rewards you with lower costs. For instance, if you raise your voluntary excess from £150 to £500, you could see noticeable monthly savings.

“Increasing your excess can significantly lower your premium, but ensure it’s a sum you can comfortably afford if an accident happens. A high excess that you can’t pay won’t save you in the long run,” advises Zego.

4. Park in a Secure Location

Where you park your car at night plays a significant role in determining your insurance premium. Think of it like storing valuables—keeping them locked away in a safe is much less risky than leaving them out in the open. Cars parked in secure garages or private driveways are at less risk of theft or vandalism, and insurers reward this with lower premiums.

“If you have a secure parking spot—whether it’s a garage or driveway—make sure your insurer knows. It reduces your risk, and that often translates to a cheaper policy,” explains Zego’s experts. For example, moving from street parking to a secure driveway could shave off a considerable portion of your premium.

5. Take Advantage of Telematics Insurance (Black Box or Apps)

Telematics insurance, which involves tracking your driving habits through a black box or mobile app, can drastically reduce your premiums—especially if you’re a safe driver. It’s like having a fitness tracker but for your car habits: the better you behave, the more you’re rewarded. For instance, cautious drivers who maintain consistent speeds, avoid harsh braking, and stay within speed limits often see significant premium reductions over time.

“Telematics allows insurers to see your driving behaviour in real-time. If you demonstrate safe driving habits, you’ll be rewarded with lower premiums. It’s a great option for young or inexperienced drivers,” says Zego’s telematics expert. But be mindful—reckless driving habits tracked by the black box could push your premiums higher.

6. Enhance Your Car’s Security Features

Enhancing your car’s security with alarms, immobilisers, or tracking devices is like adding extra locks to your front door. The more secure your car is, the less appealing it is to thieves, which insurers factor in when determining your premium. For instance, installing a GPS tracker in a high-value car can make it less risky to insure and lower your costs.

“Many modern cars come equipped with advanced security features, but if you’ve added anything extra, make sure your insurer knows. These features can lead to lower premiums,” advises Zego. Adding an immobiliser or even using a steering lock can give you the edge when negotiating your insurance rate.

7. Carefully Consider Your Job Title

It may seem strange, but your job title can influence your car insurance costs. Just as a chef might handle a kitchen differently from a cook, insurers assign different risk levels to job titles. For example, listing your occupation as ‘teacher’ instead of ‘lecturer’ might yield a lower premium. While these changes may seem small, they can add up to big savings.

“Always be truthful when declaring your occupation, but try variations that accurately reflect your role. Slight differences, like ‘manager’ versus ‘supervisor,’ can result in different quotes,” Zego’s underwriting team suggests.