With the cost of living still weighing heavily on UK households, every bill matters, and car insurance is no exception. 

According to the Association of British Insurers (ABI), the average comprehensive car insurance premium reached £635 in the first quarter of 2024, the highest on record at the time. That figure has only recently begun to ease slightly, but it still represents a major expense for many drivers.

The good news? You can take control.

A few smart moves could save you hundreds of pounds each year without cutting corners on coverage. Here’s how to start lowering your car insurance costs and keep more money in your pocket.

Compare Quotes Every Single Year

This sounds obvious, but most people don't bother. They accept the renewal quote that lands in their inbox and move on.

That's a mistake that costs money.

Insurance companies know that loyal customers rarely shop around, so they bump up renewal prices. You might have gotten a great deal last year, but this year's quote is probably inflated.

Using a reputable car insurance comparison site like Clean Green Cars lets you check prices from over 110 providers in about ten minutes. Drivers who compare quotes can often save hundreds of pounds a year compared to those who auto-renew. That’s money better spent on your weekly shops or a few tanks of petrol.  Perhaps even a weekend away!

Set a reminder on your phone for three weeks before your renewal date. Give yourself time to compare without the pressure of your policy running out.

Your Car Choice Affects Your Premium

Every car is assigned to an insurance group, ranging from 1 to 50. Higher numbers mean higher premiums because those cars are either more expensive to repair or more likely to attract claims.

A small hatchback in group 5 costs much less to insure than a sports car in group 40. If you're buying a car soon, check its insurance group first. You might love the upgraded model, but be aware that the insurance could cost hundreds more per year.

Electric cars can surprise you with lower insurance costs than you'd expect. Many insurers now offer competitive rates for EVs, and you'll also save on fuel.

Make Your Car Harder to Steal

Insurers reward you for making their job easier. If your car is less likely to get stolen or broken into, they'll charge you less.

Here's what helps:

• Install an approved alarm or immobiliser

• Park in a garage instead of on the street

• Add a tracking device

• Use a steering wheel lock

Even moving from street parking to a driveway can knock £50 off your premium. A garage is even better.

Some people add a dashcam too. It won't directly lower your premium, but it helps prove you weren't at fault in an accident, which protects your no-claims bonus.

Play Around with Your Excess 

Your excess is what you pay when you make a claim. You've got two types: compulsory (set by the insurer) and voluntary (set by you).

Increase your voluntary excess, and your premium drops. It's a trade-off.

Don't set an excess you couldn't actually afford to pay. If you bump your car and can't pay £500, you're stuck with the damage.

Build Your No-Claims Bonus (And Protect It) 

The longer you drive without making a claim, the bigger your No-Claims Bonus (NCB) discount grows. 

Here’s a rough idea: 

If you already have several years built up, consider protecting your NCB. Although it costs extra, it can save you significantly more after a single claim.

Parents adding young drivers to their policy should be cautious; always check how named drivers affect your NCB eligibility.

Pay Once Instead of Monthly

Monthly payments may seem easier on your wallet, but they can cost you more in the long run. Insurers charge interest on monthly plans, typically adding 10-20% to your total cost. 

On a £600 policy, paying monthly could cost you an extra £60-120 per year.

If you can afford it, then it is highly advisable to consider paying annually. Put aside money each month into a designated savings account if you need to build up to it. You'll actually earn interest that way instead of paying it.

Cut Your Mileage Down

The less you drive, the less risk you pose, and the less you pay.

Be honest about your annual mileage when you get quotes. If you only drive 5,000 miles a year, say so. If you estimate 12,000 miles because you're unsure, you'll end up paying more than necessary.

Working from home now? Update your insurer. Switching from commuting to social and domestic use could save you money.

Don't lowball your mileage, though. If you claim after driving more miles than you stated, your insurer might reduce your payout or refuse the claim entirely.

Start Comparing Now

Car insurance takes up a chunk of your budget, but you've got more control over the cost than you might think.

Shop around every year. Consider what car you drive. Add security features.

Adjust your excess carefully. Build and protect your no-claims bonus. Pay annually if possible. Report accurate mileage.

Each of these tips saves you money on its own. Stack them together, and you could cut your premium significantly.

Don't wait until your car insurance renewal notice arrives and panic-accept the first quote you see. Start comparing prices three to four weeks before your policy ends, and you'll find better deals with time to spare.

Your car insurance is just another bill you can control with a bit of effort.