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How UK Drivers Can Actually Save on Car Insurance

From adjusting your policy to choosing the right cover, here’s how UK drivers can reduce their car insurance bill without cutting corners.

If your latest car insurance renewal letter has made your eyes water, you’re not alone. Drivers are being hit with higher bills for cover across the UK, sometimes by hundreds of pounds compared to last year.

The average premium now sits at around £757 according to the Confused.com Car Insurance Price Index, and while that’s slightly down on the record highs of 2024, costs for covering your car are still much steeper than many households are used to.

But why is this? Well, there are myriad reasons. Modern cars are more complex and expensive to repair than ever, especially when it comes to electric cars. They’re more expensive to buy, too.Replacement parts are harder to source, and insurance fraud has pushed prices up for everyone. Add all the various reasons together and insurance premiums have become one of the biggest running costs of owning a car.

But there’s good news – you don’t have to just accept it. From shopping around to tweaking your policy details, there are straightforward ways to bring your car insurance premium back under control without cutting corners on cover.

Quick Stats: What’s Happening to Insurance Costs in the UK?

The most recent data shows that the average comprehensive car insurance premium in mid-2025 is around £757, which is down around 16% or £144 from a year earlier.

However, insurers have warned that there are still underlying cost pressures that can drive premiums up, including repair bills, parts, labour and more complex vehicle tech, as well as the fact that cars are much more expensive than they used to be – the average purchase price of a car in the UK rose by 89% between 2014 and 2024 according to the ABI (Association of British Insurers). The cost of hire vehicles, the number of theft claims and costs associated with uninsured drivers have risen by some margin – all things that insurers can’t fully control

Between 2019 and 2023, claims costs increased by around 34%, and general inflation rose by around 21% – in other words, motor-related inflation is often rising faster, the ABI says.

Young drivers continue to pay far more than average, The average insurance cost for drivers aged 17 to 24 is around £2217 a year according to Uswitch.

Basically, while premiums are lower in 2025 than in 2024, the general cost floor is still high, and many drivers are still overpaying compared to the lowest premiums available.

Top Tips to Save Money on Car Insurance

Shop around

It’s tempting to just renew with the same insurer automatically – after all, you generally don’t need to do anything. But many insurers give their best deals to new customers. Get some fresh quotes at renewal time and see if it’ll pay you to move.

Improve your car’s security

Features like alarms, immobilisers, tracking devices, or finding secure parking (a garage or locked driveway) can all make your car less of a risk to insurers.

Drive fewer miles

Lower mileage means lower risk. But be honest with your estimate, as overstating or understating can affect the claims process.

Pay annually if possible

Monthly payments often include interest charges. Paying once a year usually works out cheaper overall.

Add a named driver

If you’re a young or inexperienced driver, adding a safer, more experienced named driver, such as a parent, can bring down your premium. But be honest – the main driver must always be the person who uses the car most of the time. If the car’s mainly used by you and you put someone else as the main driver, insurers call it “fronting” and it’s against the law.

Choose the right level of cover

Although it seems counterintuitive, comprehensive cover can often be cheaper than third-party cover, and it offers you more protection. Because third-party only is often chosen by younger or higher-risk drivers, insurers will often see that group as more likely to make a claim and price third-party policies higher. Comprehensive customers are often seen as lower risk.

Build up your no-claims discount

Every year you go without making a claim, you earn a no-claims discount (NCD), which over time can take hundreds of pounds off your premium. Many insurers offer the option to protect your NCD for an extra fee, which means one accident won’t wipe out the years you’ve built up. If you’re a careful driver, it’s one of the most reliable long-term ways to bring costs down.

Pay for what you actually need

If your car has a very low value, you might not need add-ons like windscreen cover or personal accident insurance, especially if you have such cover elsewhere, such as through your bank account or AA or RAC membership. Pare your cover back to the essentials to save costs.

Increase your voluntary excess

Agreeing to pay a bit more towards a claim can reduce your premium. Just make sure it’s still affordable if you need to make a claim.

Consider a telematics (black box) policy

A black box isn’t just for young drivers – many insurers now offer them for all ages. If you drive safely and at sensible times, it can lower your renewal.

Don’t modify your car

Even small changes like replacement alloy wheels or tinted windows can increase premiums. If your car is as it was from the factory, keep it that way for cheaper cover.

How Much You Could Save

TipTypical Saving
Shopping around at renewal
£77 (average according to Confused.com)
Paying annually instead of monthly£50 - £100
Adding a named driver£100 - £250
Installing extra security£30 - £100
Increasing voluntary excess£50 - £100
Considering a black box policy£200+ (young drivers may save the most)
Paying for what you actually need£20 - £50
Avoiding car modifications£50 - £200

(Estimates only – actual savings will vary by car, driver profile, and location.)

Special Considerations for Different Types of Drivers

There are measures you can take if you fall into certain categories that can have a greater impact on your insurance costs. We’ll run through some of the most common ones.

Young Drivers

Younger drivers face particularly high premiums, because they tend to represent the most risk. Adding a black box to your car to track your driving behaviour can often earn you discounts by proving that you drive safely. You could also consider Pass Plus or similar advanced driving courses to qualify for insurer discounts, and adding a more experienced named driver to your policy. Be canny about the car you choose, too – try to find one in as low an insurance group as possible, and don’t modify it from standard.

Find out more!

Older Drivers

When it comes to insurance, loyalty very often doesn’t pay. Shop around at renewal time and compare what you’re actually getting. Independent consumer testing by Which? for over-50s policies shows that quality and price vary wildly. If you drive less than you used to, ask for quotes based on lower, more accurate mileage. You could also look at pay-as-you-go cover designed for occasional use. Some insurers recognise advanced driving qualifications and could offer a lower premium, although that’s not universal – it might be better to treat such a course as a confidence booster and any discounts as a nice-to-have rather than guaranteed.

Find out more!

Urban Drivers

Car crime can be higher in towns and cities, so consider extra security for your car. If possible, a garage, gated car park or a private driveway is usually seen as lower risk than on-street parking, though you must always be honest about where your car usually stays. It could also be worth investing in a dashcam – some insurers may offer a discount, so it’s worth ticking that box when you get a quote.

Find out more!

How Car Type Affects Your Premium

As you can probably guess, the more expensive and/or powerful your car, the more expensive they are to repair, and therefore the more expensive to insure. Luxury and performance cars will always cost more than humble hatchbacks, for example.

Check your car’s insurance group (from 1 to 50) – the higher the group, the more expensive your premium is likely to be.

Electric cars can be pricier to insure because of the battery and parts costs, but some insurers have special Electric Vehicle (EV) policies or offer discounts.

Final Checklist Before You Buy Insurance

Before buying car insurance, always:

  • Compare at least three quotes
  • Check the excess levels (both compulsory and voluntary)
  • Make sure you’re getting the cover you need, not just the cheapest price
  • Ask about no-claims discount protection
  • Remove any unused drivers from the policy

Car Insurance Frequently Asked Questions

Look at black box policies, extra training, and always shop around – don’t just take the first quote.

Yes – safe driving is rewarded with lower premiums, though poor driving can push them up.

Annually is usually cheaper, as monthly instalments often include interest.

Not always, but it often helps younger or higher-risk drivers.

Group 1. Cars with smaller engines and lower repair costs often fall here, and include some versions of the Citroen C1, the Hyundai I10 and the Kia Picanto

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