Five tricks to slash your car insurance bill by £100s today – and exact date to renew

Credit: d3sign CAR insurance is one of those costs motorist can’t escape, but choosing the right cover could save you money while making sure you’re protected if something goes wrong. Here’s what you need to know before buying or renewing your policy. Accepting your renewal offer without looking around could be costing you hundreds Credit: Fabio Camandona Compare car insurance quotes from over 180 trusted UK insurers with MoneySuperMarket What is car insurance? Car insurance protects you financially if you’re involved in an accident or your car is damaged, stolen or affected by other events covered by your policy. Sign up for the Money newsletter Thank you! You must have legally have at least third-party insurance to drive on UK roads. Alicia Hempsted, car insurance expert from MoneySupermarket, said: “After a period of volatility, car insurance prices have largely stabilised after reaching record highs in 2024. Some of the biggest reductions were seen among younger drivers, who experienced the sharpest premium increases in the years leading up to that peak.” “Electric vehicle insurance costs have also fallen as insurers have built more experience of covering EVs and gathered more data on repairs and claims, helping them price policies more accurately.” “However, we’re now seeing premiums edge up again in 2026. According to the ABI, insurers paid out a record £3.2 billion in motor claims between April and June, while the average claim rose to £4,900.” Most read in Motors What are the different types of car insurance? There are three types of car cover that provide different levels of protection There are three main levels of cover. Third-party: This is the legal minimum. It covers damage or injury you cause to other people, their vehicles or property, but not damage to your own car. Average cost: £824.43 Third-party fire and theft: This covers your car if it is stolen or damaged by fire. Average cost: £559.35 Fully comprehensive: Often the highest level of cover, although exactly what’s included does vary between different insurers and policies. Interestingly, fully comprehensive cover isn’t always the most expensive option, so it’s worth comparing all three levels rather than assuming third party will be the cheapest. Average cost: £522.50 Prices based on the median annual price of comprehensive car insurance policies sold through MoneySuperMarket in July 2026, with one driver who has held their licence for at least one year. What affects the price of car insurance? Insurers consider a range of factors when calculating your premium. There are many factors that affect the price of your premium including: Your age Driving history The type of car you drive If you have a tracker fitted Your mileage How you use your car The level of cover Your excess If you have a dashcam How can I get cheaper car insurance? There are a few things you can do to cut down the cost of your insurance including: Buying early: Insurers usually offer better prices between 3-4 weeks before your policy start date. Increase excess: Increasing your excess means you are increasing the amount you will need to pay in the event of a claim.While increasing your excess may reduce your premiums, it’s important that it is an amount you will be able to afford. Alicia added: “Drivers could also consider increasing their voluntary excess, which may help reduce the cost of cover. However, it’s important to choose an excess level that would be affordable if you needed to make a claim.” Add a named driver: Adding a more experienced driver can often make insurers see the policy as less risky. Add your driving licence: This is one you may not be able to avoid at some point of your insurance journey, but adding your licence early on in your journey can allow insurers to accurately verify your details and assess your risk more accurately. Compare quotes: Shopping around will help you find a better deal and allow you to compare providers all in one place. MoneySuperMarket not only lets you compare prices between providers you can also see the differences in cover options, allowing you to choose which options suits you best. Compare car insurance with MoneySuperMarket You can compare car insurance quotes through MoneySuperMarket, with quotes from over 180 trusted UK insurers. According to MoneySuperMarket, the cheapest time to buy your insurance policy is around 26 days before renewal, although prices vary between individuals. What extras can you add? Car insurance add-ons allow you to expand protection beyond your standard insurance coverage these add-ons can include: Breakdown cover Windscreen cover Motor legal protection No claims bonus protection Courtesy/ Hire car upgrade Key cover Personal accident cover Gap insurance Misfuelling cover Driving abroad / European cover Excess protection Modification / accessory cover Adding these extras can increase the price, so only pay for extras you actually need. Can I pay for my policy monthly? Yes, many insurers allow you to pay for your policy through monthly direct debits rather than a single upfront annual payment. However, paying monthly can be more expensive as there is an interest charge added to your payment. *All savings information given in the above quotes is based on Car Insurance enquiries on MoneySuperMarket between 2025-01-01 and 2025-04-01 where the quote was for comprehensive covertype.