Should I buy the cheapest policy I can find?<\/h3><\/div>![\"Liz](\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/3\/2021\/07\/lizedwards_Finder_600x600.jpeg\")
<\/p>
Finder insurance expert Liz Edwards<\/a> answers <\/em><\/div><\/div>Any car insurance policy is better than risking the harsh penalties that can come with driving uninsured. So, if the cheapest possible car insurance policy is the only policy you can afford, then so be it.<\/p>
There may also be occasions when it simply doesn\u2019t make sense to pay more than the minimum for car insurance. For example, if your car is relatively old and of low value, you may be happy to opt for third party cover (assuming it\u2019s cheapest), and accept the hit if your car gets badly damaged or nicked.<\/p>
Before you make this kind compromise, though, think through the \u201cwhat if\u201d scenarios. Could you survive without a car if yours was written off or stolen, and you couldn\u2019t afford a new one out of pocket? Has that policy at the top of the search rankings secured its place by skimping on features, or setting an eye-wateringly high excess? On the admin front, would you be happy dealing with a digital-only firm that didn\u2019t offer a phone line for queries?<\/p>
Of course, it\u2019s possible that you\u2019ve managed to find a sweet spot where the cheapest policy covers everything you need. If so, then go for it. If not, it\u2019s probably worth paying a bit more to secure a policy that strikes the right compromise between price and quality of cover. It could end up saving you money in the long run.<\/p><\/div><\/div><\/div><\/article>
How can I get cheaper car insurance rates?<\/h3>
There are many ways to lower your insurance premiums such as:<\/p>
- Shop around to compare price.<\/strong> Switch car insurance<\/a> instead of automatically renewing, especially if you\u2019ve been through any big life changes such as getting married or moving house.<\/li>
- Only pay for the cover you need.<\/strong> Resist adding optional extras unless you\u2019re certain you need them. Legal expenses insurance and a courtesy car could both be extras you could live without, for example.<\/li>
- Try a higher excess.<\/strong> Consider raising your excess<\/a>, which is the amount you have to pay when making a claim before you get reimbursed. A higher excess means lower premiums.<\/li>
- Build up your no-claims discount.<\/strong> The more years you drive without making a claim, the bigger the no-claims bonus<\/a> you\u2019ll get on your premiums. In some cases, it might be worth covering costs yourself rather than claiming for relatively minor repairs, to protect your no-claims history.<\/li>
- Choose your car wisely.<\/strong> High-powered, luxury and expensive vehicles cost more to cover, so stay away from them if you want to save money on insurance. A cheaper car in a lower insurance group<\/a> will not only save you money at the point of purchase, but will continue costing you less for its entire life.<\/li>
- Pay annually.<\/strong> If the annual cost of your car insurance is too much to pay all at once, many insurers will let you pay your premium in instalments throughout the year. While it may save you from paying a lump sum, paying monthly<\/a> typically costs more overall once interest is added.<\/li>
- Reduce your mileage.<\/strong> You could get a low mileage discount if you reduce the miles you drive. Carpool or take public transport if you can, or plan your errands for one trip per day instead of taking lots of little trips.<\/li>
- Check for offers and discounts<\/strong>. Cashback sites such as Quidco and TopCashback<\/a> often offer money back if you buy car insurance through them. You\u2019ll have to wait at least a few months to get the cashback, though. We suggest picking the best policy for you without cashback and seeing if you can get a little extra bonus, rather than basing your decision on how much cashback you can get. You might also be able to get a discount if you\u2019re a member of a motoring club.<\/li><\/ul>
Do price comparison sites offer the cheapest cover?<\/h3>
Maybe! You need to bear a couple of things in mind though.<\/p>
- Different price comparison sites might have different arrangements with different insurance providers. So it\u2019s usually worth checking at least a couple of price comparison sites to make sure you see the very best deals.<\/li>
- Some insurers choose not to feature on price comparison sites. These include Direct Line and NFU Mutual, as well as insurance broker Adrian Flux and a range of other specialist insurers that cater to specific insurance needs.<\/li><\/ol>
Price comparison sites usually cover the majority of the market. So if your insurance needs are fairly straightforward and you\u2019re short on time, you\u2019ll probably get a decent deal via a price comparison site. But if you want to guarantee the cheapest quote, or if you have more niche requirements (a classic or high-end car, or a driving history that makes you harder to insure, for example), then you may need to put a bit more legwork into getting the cheapest insurance.<\/p>
Do I have to switch provider to get cheaper car insurance?<\/h3>
Not necessarily. If you\u2019re happy with your insurer but aren\u2019t happy with its renewal premium, you can try negotiating for a better deal.<\/p>
It will almost certainly help to shop around and see what competitors are offering first. Having evidence that you can find a better deal elsewhere is more likely to persuade your insurer that they need to fight to keep your business.<\/p>
If your provider can\u2019t match the price for like-for-like cover from another insurer, but you don\u2019t really want to leave, you could ask if it will instead throw in some optional extras that you\u2019d find valuable.<\/p>
If that doesn\u2019t work either, then you may have no choice but to switch car insurer<\/a> to save money. Just make sure to cancel any autorenewal with your current provider. Set up your new policy to start as soon as your old one ends.<\/p>How can I get cheap car insurance as a young driver?<\/h3>
One of the unfortunate realities of car insurance is that younger drivers tend to pay more for car insurance than older drivers. That\u2019s because statistically, younger drivers are more likely to be involved in an accident, and insurers see this group to typically be a higher risk.<\/p>
That said, there are ways to get a good deal on car insurance as a young driver<\/a>, including:<\/p>- Choose your car wisely.<\/strong> High-powered vehicles cost more to cover, so stay away from them if you want to save money on insurance. A cheaper car in a lower insurance group<\/a> will not only save you money at the point of purchase, but will continue costing you less for its entire life.<\/li>
- Add low-risk drivers to your policy.<\/strong> You could see lower premiums by adding an older and experienced driver to your policy as a named driver<\/a>.<\/li>
- Improve your driving skills. <\/strong>Taking an advanced driving course<\/a> could get you a safe driver discount with some insurers, as well as reducing your risk of needing to make a costly claim.<\/li>
- Avoid monthly payments.<\/strong> If the annual cost of your car insurance is too much to pay all at once, many insurers will let you pay your premium in instalments throughout the year. While it may save you from paying a lump sum, the interest that insurers add to monthly payments means it typically costs more overall.<\/li><\/ul>
What car insurance traps should I look out for to keep costs down?<\/h3>
If you\u2019re looking to keep car insurance costs down, there are a few things that could trip you up. Don\u2019t risk falling foul of any of these.<\/p>
- Auto-renewal.<\/b> This is where your insurer sets up your policy to roll on year after year, taking payment using the same method you used to pay initially. It\u2019s a useful practice to avoid you driving uninsured, but it could cost you dear if your renewal<\/a> premium is higher than you could get from a competitor. Don\u2019t blindly renew your policy each year. Always get quotes from multiple providers, and switch if it\u2019ll save you money.<\/li>
- Prioritising price over quality of cover.<\/b> Price is obviously an important factor when shopping for cheap car insurance, but don\u2019t choose a policy based on price alone. Compare the features, benefits and limits of several policies on the market. Make sure any policy that looks like a total steal isn\u2019t skimping on features that you would find essential.<\/li>
- Not knowing how your coverage works.<\/b> Assuming you\u2019re covered for something could come back to bite you if you need to claim and discover you\u2019re not. Check the fine print on your policy before signing up to check exclusions and cover limits.<\/li>
- Setting a sky-high excess.<\/b> You can save money by selecting a higher excess<\/a> in return for cheaper premiums. But if your excess is too high, it may make it too expensive for you to ever make a claim. Set your excess to a level that you can afford if you need to claim.<\/li>
- Letting uninsured drivers behind your wheel. <\/b>Only let drivers who are specifically named on your policy<\/a>, or who have their own policy on your car, get behind the wheel of your car. Even if they have an insurance policy on their own car that covers them to drive other cars<\/a>, this will probably only be on a third party<\/a> basis. This means that damage to your car wouldn\u2019t be covered in an accident.<\/li>
- Making lots of small claims.<\/b> Every claim<\/a> you make is likely to drive up future premiums. If the cost of repairing damage isn\u2019t too much higher than your excess, it could be worth getting it fixed yourself rather than going through your insurer. You\u2019ll still need to tell your insurer about the damage (or risk invalidating your insurance), and your premium may still go up a bit as a result, but probably not as much as if you had put in a claim.<\/li><\/ul>Compare car insurance<\/a><\/div>
Bottom line<\/h3>
The car insurance policy that works for you won\u2019t necessarily work for someone else. And because of this, it\u2019s important you consider your insurance options carefully.<\/p>
Some factors that affect your car insurance are outside of your control, but there are also factors you can influence. Driving safely, reducing your mileage if possible, paying annually, and shopping around<\/a> annually, can all help make your car insurance cheaper.<\/p>Ultimately, remember that \u201ccheapest\u201d doesn\u2019t always mean \u201cbest\u201d. Ppting for the very cheapest cover could mean you forfeit protection in key areas.<\/p>
Frequently asked questions<\/h3>- \n \n
\n
<\/p>
Any car insurance policy is better than risking the harsh penalties that can come with driving uninsured. So, if the cheapest possible car insurance policy is the only policy you can afford, then so be it.<\/p>
There may also be occasions when it simply doesn\u2019t make sense to pay more than the minimum for car insurance. For example, if your car is relatively old and of low value, you may be happy to opt for third party cover (assuming it\u2019s cheapest), and accept the hit if your car gets badly damaged or nicked.<\/p>
Before you make this kind compromise, though, think through the \u201cwhat if\u201d scenarios. Could you survive without a car if yours was written off or stolen, and you couldn\u2019t afford a new one out of pocket? Has that policy at the top of the search rankings secured its place by skimping on features, or setting an eye-wateringly high excess? On the admin front, would you be happy dealing with a digital-only firm that didn\u2019t offer a phone line for queries?<\/p>
Of course, it\u2019s possible that you\u2019ve managed to find a sweet spot where the cheapest policy covers everything you need. If so, then go for it. If not, it\u2019s probably worth paying a bit more to secure a policy that strikes the right compromise between price and quality of cover. It could end up saving you money in the long run.<\/p><\/div><\/div><\/div><\/article>
How can I get cheaper car insurance rates?<\/h3>
There are many ways to lower your insurance premiums such as:<\/p>
- Shop around to compare price.<\/strong> Switch car insurance<\/a> instead of automatically renewing, especially if you\u2019ve been through any big life changes such as getting married or moving house.<\/li>
- Only pay for the cover you need.<\/strong> Resist adding optional extras unless you\u2019re certain you need them. Legal expenses insurance and a courtesy car could both be extras you could live without, for example.<\/li>
- Try a higher excess.<\/strong> Consider raising your excess<\/a>, which is the amount you have to pay when making a claim before you get reimbursed. A higher excess means lower premiums.<\/li>
- Build up your no-claims discount.<\/strong> The more years you drive without making a claim, the bigger the no-claims bonus<\/a> you\u2019ll get on your premiums. In some cases, it might be worth covering costs yourself rather than claiming for relatively minor repairs, to protect your no-claims history.<\/li>
- Choose your car wisely.<\/strong> High-powered, luxury and expensive vehicles cost more to cover, so stay away from them if you want to save money on insurance. A cheaper car in a lower insurance group<\/a> will not only save you money at the point of purchase, but will continue costing you less for its entire life.<\/li>
- Pay annually.<\/strong> If the annual cost of your car insurance is too much to pay all at once, many insurers will let you pay your premium in instalments throughout the year. While it may save you from paying a lump sum, paying monthly<\/a> typically costs more overall once interest is added.<\/li>
- Reduce your mileage.<\/strong> You could get a low mileage discount if you reduce the miles you drive. Carpool or take public transport if you can, or plan your errands for one trip per day instead of taking lots of little trips.<\/li>
- Check for offers and discounts<\/strong>. Cashback sites such as Quidco and TopCashback<\/a> often offer money back if you buy car insurance through them. You\u2019ll have to wait at least a few months to get the cashback, though. We suggest picking the best policy for you without cashback and seeing if you can get a little extra bonus, rather than basing your decision on how much cashback you can get. You might also be able to get a discount if you\u2019re a member of a motoring club.<\/li><\/ul>
Do price comparison sites offer the cheapest cover?<\/h3>
Maybe! You need to bear a couple of things in mind though.<\/p>
- Different price comparison sites might have different arrangements with different insurance providers. So it\u2019s usually worth checking at least a couple of price comparison sites to make sure you see the very best deals.<\/li>
- Some insurers choose not to feature on price comparison sites. These include Direct Line and NFU Mutual, as well as insurance broker Adrian Flux and a range of other specialist insurers that cater to specific insurance needs.<\/li><\/ol>
Price comparison sites usually cover the majority of the market. So if your insurance needs are fairly straightforward and you\u2019re short on time, you\u2019ll probably get a decent deal via a price comparison site. But if you want to guarantee the cheapest quote, or if you have more niche requirements (a classic or high-end car, or a driving history that makes you harder to insure, for example), then you may need to put a bit more legwork into getting the cheapest insurance.<\/p>
Do I have to switch provider to get cheaper car insurance?<\/h3>
Not necessarily. If you\u2019re happy with your insurer but aren\u2019t happy with its renewal premium, you can try negotiating for a better deal.<\/p>
It will almost certainly help to shop around and see what competitors are offering first. Having evidence that you can find a better deal elsewhere is more likely to persuade your insurer that they need to fight to keep your business.<\/p>
If your provider can\u2019t match the price for like-for-like cover from another insurer, but you don\u2019t really want to leave, you could ask if it will instead throw in some optional extras that you\u2019d find valuable.<\/p>
If that doesn\u2019t work either, then you may have no choice but to switch car insurer<\/a> to save money. Just make sure to cancel any autorenewal with your current provider. Set up your new policy to start as soon as your old one ends.<\/p>
How can I get cheap car insurance as a young driver?<\/h3>
One of the unfortunate realities of car insurance is that younger drivers tend to pay more for car insurance than older drivers. That\u2019s because statistically, younger drivers are more likely to be involved in an accident, and insurers see this group to typically be a higher risk.<\/p>
That said, there are ways to get a good deal on car insurance as a young driver<\/a>, including:<\/p>
- Choose your car wisely.<\/strong> High-powered vehicles cost more to cover, so stay away from them if you want to save money on insurance. A cheaper car in a lower insurance group<\/a> will not only save you money at the point of purchase, but will continue costing you less for its entire life.<\/li>
- Add low-risk drivers to your policy.<\/strong> You could see lower premiums by adding an older and experienced driver to your policy as a named driver<\/a>.<\/li>
- Improve your driving skills. <\/strong>Taking an advanced driving course<\/a> could get you a safe driver discount with some insurers, as well as reducing your risk of needing to make a costly claim.<\/li>
- Avoid monthly payments.<\/strong> If the annual cost of your car insurance is too much to pay all at once, many insurers will let you pay your premium in instalments throughout the year. While it may save you from paying a lump sum, the interest that insurers add to monthly payments means it typically costs more overall.<\/li><\/ul>
What car insurance traps should I look out for to keep costs down?<\/h3>
If you\u2019re looking to keep car insurance costs down, there are a few things that could trip you up. Don\u2019t risk falling foul of any of these.<\/p>
- Auto-renewal.<\/b> This is where your insurer sets up your policy to roll on year after year, taking payment using the same method you used to pay initially. It\u2019s a useful practice to avoid you driving uninsured, but it could cost you dear if your renewal<\/a> premium is higher than you could get from a competitor. Don\u2019t blindly renew your policy each year. Always get quotes from multiple providers, and switch if it\u2019ll save you money.<\/li>
- Prioritising price over quality of cover.<\/b> Price is obviously an important factor when shopping for cheap car insurance, but don\u2019t choose a policy based on price alone. Compare the features, benefits and limits of several policies on the market. Make sure any policy that looks like a total steal isn\u2019t skimping on features that you would find essential.<\/li>
- Not knowing how your coverage works.<\/b> Assuming you\u2019re covered for something could come back to bite you if you need to claim and discover you\u2019re not. Check the fine print on your policy before signing up to check exclusions and cover limits.<\/li>
- Setting a sky-high excess.<\/b> You can save money by selecting a higher excess<\/a> in return for cheaper premiums. But if your excess is too high, it may make it too expensive for you to ever make a claim. Set your excess to a level that you can afford if you need to claim.<\/li>
- Letting uninsured drivers behind your wheel. <\/b>Only let drivers who are specifically named on your policy<\/a>, or who have their own policy on your car, get behind the wheel of your car. Even if they have an insurance policy on their own car that covers them to drive other cars<\/a>, this will probably only be on a third party<\/a> basis. This means that damage to your car wouldn\u2019t be covered in an accident.<\/li>
- Making lots of small claims.<\/b> Every claim<\/a> you make is likely to drive up future premiums. If the cost of repairing damage isn\u2019t too much higher than your excess, it could be worth getting it fixed yourself rather than going through your insurer. You\u2019ll still need to tell your insurer about the damage (or risk invalidating your insurance), and your premium may still go up a bit as a result, but probably not as much as if you had put in a claim.<\/li><\/ul>
Compare car insurance<\/a><\/div>Bottom line<\/h3>
The car insurance policy that works for you won\u2019t necessarily work for someone else. And because of this, it\u2019s important you consider your insurance options carefully.<\/p>
Some factors that affect your car insurance are outside of your control, but there are also factors you can influence. Driving safely, reducing your mileage if possible, paying annually, and shopping around<\/a> annually, can all help make your car insurance cheaper.<\/p>
Ultimately, remember that \u201ccheapest\u201d doesn\u2019t always mean \u201cbest\u201d. Ppting for the very cheapest cover could mean you forfeit protection in key areas.<\/p>
Frequently asked questions<\/h3>
- \n \n
\n
- Prioritising price over quality of cover.<\/b> Price is obviously an important factor when shopping for cheap car insurance, but don\u2019t choose a policy based on price alone. Compare the features, benefits and limits of several policies on the market. Make sure any policy that looks like a total steal isn\u2019t skimping on features that you would find essential.<\/li>
- Add low-risk drivers to your policy.<\/strong> You could see lower premiums by adding an older and experienced driver to your policy as a named driver<\/a>.<\/li>
- Choose your car wisely.<\/strong> High-powered vehicles cost more to cover, so stay away from them if you want to save money on insurance. A cheaper car in a lower insurance group<\/a> will not only save you money at the point of purchase, but will continue costing you less for its entire life.<\/li>
- Only pay for the cover you need.<\/strong> Resist adding optional extras unless you\u2019re certain you need them. Legal expenses insurance and a courtesy car could both be extras you could live without, for example.<\/li>