How to Choose Car Insurance and Lower Your Premium

Before you start

• Your driving licence details
• The car’s registration, make, model and value
• Details of any previous claims or convictions
• Your estimated yearly mileage

Method 1 Choose the right level of cover

1. 1

   Step 1: Third-party only

   Covers injury to other people and damage to their property. It’s the legal minimum in many countries, but doesn’t pay for your own car.

2. 2

   Step 2: Third-party, fire and theft

   Adds cover if your car is stolen or damaged by fire.

3. 3

   Step 3: Comprehensive

   Also covers damage to your own car, even if an accident was your fault. It’s often not much more expensive than lower cover, so always compare.

4. 4

   Step 4: Know the local terms

   Names differ by country. In the US, for example, policies combine liability, collision and comprehensive cover, and minimum liability limits are set by each state.

Method 2 Compare quotes properly

1. 1

   Step 1: Use the same details everywhere

   Enter identical information on each comparison site or insurer, so quotes are truly comparable.

2. 2

   Step 2: Check the excess

   The excess (deductible) is what you pay towards each claim. A low price often hides a high excess. Add the compulsory and voluntary excess together.

3. 3

   Step 3: Compare the extras

   Check for courtesy car, windscreen cover, breakdown cover, legal expenses, personal belongings and driving abroad. Only pay for extras you’d actually use.

4. 4

   Step 4: Read the exclusions

   Look at what isn’t covered: keys left in the car, commuting or business use, unapproved modifications, and named drivers.

5. 5

   Step 5: Check reviews and claims service

   The cheapest policy is no bargain if claims are slow or difficult. Look at independent reviews and complaint statistics where published.

Method 3 Lower your premium honestly

1. 1

   Step 1: Shop around every year

   Don’t automatically renew. Compare prices about three to four weeks before renewal; prices are often lower than on the last day.

2. 2

   Step 2: Pay annually

   Paying monthly often adds interest. Pay in one go if you can.

3. 3

   Step 3: Choose a sensible voluntary excess

   A higher excess reduces the premium, but only choose an amount you could pay tomorrow.

4. 4

   Step 4: Build and protect your no-claims record

   Each claim-free year usually earns a discount. Consider paying for small repairs yourself instead of claiming.

5. 5

   Step 5: Give accurate mileage and use

   Estimate your yearly mileage realistically; lower mileage often costs less.

6. 6

   Step 6: Improve security

   Approved alarms, immobilisers, trackers and off-road or garage parking can lower prices.

7. 7

   Step 7: Consider telematics

   A “black box” or app policy prices your insurance on how safely you drive, which can help young and new drivers.

8. 8

   Step 8: Add an experienced named driver

   Adding a careful, experienced driver who genuinely uses the car can reduce the price for new drivers.

Troubleshooting

Frequently asked questions

Summary