We explain how to get the best deal on car insurance and save money on premiums.

There are hundreds of different companies offering car insurance at various prices.

Shop around - spending a bit of time comparing services could pay big dividends.

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Play companies off against each other when shopping around – quote prices from rival companies to drive costs down.

Weigh up all the options – would you benefit from extra incentives such as cheaper breakdown cover and free legal advice?

You may be able to get cheaper breakdown cover and legal cover elsewhere, so shop around. It’s also worth asking about your renewal quote each year – insurers may add these extras on without notifying you. If you don’t need or want them, take them off and you could cut the cost of your car insurance by a considerable amount.

It’s a good idea to ask each company if higher annual mileage will increase insurance costs – don’t always assume it will.

Insurers will also offer instalment plans, which may or may not be best for you. Work out which is cheaper – paying outright by credit card or monthly payments (with interest).

Some also allow you to split the payment over two or more post-dated cheques to avoid interest charges.

The A-Z of car insurance

Other ways to save money on car insurance

• Choose third party cover if you own a low-value car
• Build up your no claims bonus – accident-free motorists can receive discounts of up to 70 per cent
• Slow down – speeding tickets add an average 13 per cent to premiums
• Avoid modifying your car
• Take a Pass Plus course if you’re a new driver

What is a protected no claims bonus?

After a few accident-free years you can pay for your no claims bonus to be protected, which means you won’t lose your bonus if you make a claim.
When protected, motorists are usually allowed up to one claim per year – or two over a three-year period. However making a claim could still cause your premiums to rise.

What is a guaranteed no claims bonus?

This allows you to protect your no claims discount for life. You’ll normally need around five claim-free years before the insurance company will guarantee your bonus for life – but they will increase your premium if you continue to claim.
What type of cover should I get?

Third party

If your car has a low value you might want to consider third party insurance - it's the cheapest cover and you'll be insured if you hit someone. But you'll have to pay for your own repairs yourself, and you won’t get a payout if you’re the victim of theft, or your car is involved in a fire.

Third party fire and theft

This cover will protect you if your car is stolen or burnt out, and includes third party insurance.

Fully comprehensive

Damage to your car will be covered whether you’re at fault or not. This is the safest bet and ideal for cars with a higher value.

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What are you protected against? Read our Car insurance: Are you covered? guide for full details of what your policy covers – and what it doesn’t.

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