There are eight ways to get cheap insurance

When looking for insurance, it’s important that you choose a policy that fits your needs. Photo: Richard Baker/Getty

Cheap car insurance is hard to find but within the difficult cost of living most drivers are willing to do their best to soften the blow when the bill explodes.

Here we give you eight top tips from the consumer Where? to get a cheap insurance without having to adjust the price on the insurance.

1. Shop around and don’t auto-renew

The ban on the insurance ‘loyalty penalty’ at the beginning of 2022 ended the season of new sales discounts – and seems to have contributed to the increase in prices for some groups of customers.

Where? find that it pays to shop together when renewing a policy. half (48%) of which? Members who traded in the first six months of 2022 saved – on average £56 for car insurance and £54 for home insurance.

Read more: Car insurance prices rise by 2% to £436 on average

There are also savings available by switching companies. Drivers who did not trade, but switched car insurance companies paid £43 less, on average, than those who stayed with their previous company. Home insurance agents paid £103 less.

2. Find the frame on comparison sites

Be aware that some insurers set different prices depending on the method used to get a quote and some comparison sites also offer financial incentives to entice customers.

For example, when Where? check in December 2022, Confused.com and MoneySupermarket confirm the beating of the current customer’s car or home insurance renewal offer or return the difference, as well as offering a £20 voucher. GoCompare offers free premium car insurance quotes. This is refundable up to £250 of the excess if you claim (excluding breakage and damaged glass).

In October 2022, Where? try a quote for a 38-year-old Ford Focus Zetec driver and, adding more than £250, reduce the cheapest five between £55 and £58 – about 12%.

Not all insurance companies or policies are displayed on comparison websites, so it’s worth checking directly with the insurer.

3. Get the timing right

When you look for a new policy it can affect the quote you get. Often, leaving it until the last minute means that insurers pay more than if they bought the cover a few weeks before. at the beginning of the insurance.

The time of year can also affect your quotes. Where? analyzed 33 months of car insurance data from Compare the Market (Jan 2020-Sept 2022), and found regular changes of up to £50 in average prices based on the month you shop, with prices peaking in December and fall between February. and April.

4. Make sure there is enough coverage

Consider whether the cheapest policy you can find will actually save you money in the long run. If a policy is cheap but comes with large excesses or significant exclusions, it could actually cost you more if you have to make a claim. . It is very important that you check the product information before purchasing the cover.

5. Make sure the cover fits you

When looking for insurance, it is important that you choose a policy that meets your needs, and that you are not paying for extras that you may not use or benefit from. You can adjust the coverage of a policy to suit your needs by changing the deductible, as the increase will reduce the premium. . Make sure that the ‘total’ cost (any extra incentives plus the optional extra) is not higher than you can afford to pay. for a claim.

6. Make sure the quote is accurate

Pay close attention to the questions asked when applying for insurance and check the assumptions made about your circumstances when it’s time to renew.

Read more: ‘Ghost’ car insurance scam costs victims £1,950

For example, if your daily commute to work changes during rush hour, you may be driving fewer miles each year. For home insurance, you may have made a change to your property – or the value of your insured items may have changed.

Notifying the insurer of any changes means you get a more accurate quote – potentially saving you money.

7. Annual payment (if applicable)

Paying for insurance monthly may be a more expensive option. This is because you are effectively borrowing a year’s worth of repayments. It usually comes with interest rates — with rates as high as 30% APR not uncommon — climbing the annual cost. So if you can afford it, pay annually.

8. Try an entrepreneur

It may be difficult for some people to find a policy that suits them, maybe because of their age, the type of house they live in, an illness, or other different conditions that make it difficult to get insurance.

If you haven’t found a policy that meets your needs after researching online and through comparison sites, it might be worth trying a broker. The broker will obtain insurance, arrange collateral, and can assist with renewals and making a claim. They are usually paid on commission.

Watch: 5 Ways to Lower Your Car Insurance Costs

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