Car insurance costs are rising again: here’s how you can pay less

Car insurance prices are climbing again, adding even more pressure to drivers already dealing with rising fuel costs and higher car tax bills.

After falling to a three-year low earlier this year, average premiums are now starting to creep back up. Research from MoneySuperMarket suggests growing tensions in the Middle East are partly behind the increase.

The average annual premium reached £751.25 in April, up 3% from £729.23 in February, before the Iran conflict began.

The good news is there are still plenty of ways you can cut the cost of your cover.

How you can keep your car insurance costs down

Don’t auto-renew, shop around instead

Even though rules introduced in 2022 stopped insurers from offering cheaper deals only to new customers, you can still often beat your renewal quote by comparing prices elsewhere.

Different insurers can still offer different prices through different websites and comparison platforms. That means you could find a much better deal simply by shopping around before your renewal date.

Negotiate your renewal quote

If your insurer offers a higher renewal price, don’t be afraid to challenge it.

Many insurers are willing to lower their quote if you can show you’ve found cheaper cover elsewhere. Before you call, gather a few competing quotes so you’re in a stronger position to negotiate.

Pay annually if you can

If possible, paying for your policy in one lump sum is usually cheaper than spreading the cost over monthly instalments.

Monthly payments may feel easier to manage, but they often come with added interest and fees.

Consider using an interest-free credit card

If you can’t afford to pay upfront, using a 0% interest credit card to cover the annual cost could work out cheaper than paying monthly  as long as you clear the balance before interest kicks in.

Get quotes three to four weeks before renewal

Timing matters more than many drivers realise.

According to MoneySavingExpert, the cheapest car insurance quotes are usually available around 23 days before your renewal date. Leave it too late and prices can rise.

Try black-box insurance

Telematics insurance, often called black-box insurance, monitors how safely you drive.

If you’re a careful driver, this type of policy could reduce what you pay, especially if you’re younger or newer to driving.

Add a lower-risk driver

Adding an experienced driver with a strong no-claims history to your policy can sometimes reduce your premium.

This could be a parent, partner or older family member, but they should genuinely use the car. Giving false information could invalidate your insurance.