Getting cheap car insurance in the UK starts with comparing quotes, choosing a car in a lower insurance group, and building your no claims discount. You can also reduce costs by increasing your voluntary excess, adding a named driver with experience, and paying annually instead of monthly. UK newcomers can save even more with Marshmallow by proving their claim-free driving history from other countries.
Car insurance is one of the biggest costs of owning a vehicle in the UK. But with the right approach, you could save hundreds of pounds a year on your premium.
Why is car insurance so expensive in the UK?
Before we dive into how to make insurance cheaper, it helps to understand why prices have been rising.
The cost of car insurance in the UK has increased significantly in recent years. This is down to several factors: the rising cost of vehicle repairs, higher prices for replacement parts, and an increase in uninsured drivers on UK roads. Add in more expensive medical claims and you can see why car insurance is so expensive in the UK.
The good news? There are plenty of practical ways to bring your costs down.
How to make car insurance cheaper: 11 practical tips
1. Compare car insurance quotes before you buy
This might sound obvious, but shopping around is the single most effective way to get cheap car insurance. Prices can vary by hundreds of pounds between insurers for the exact same level of cover.
Start by using comparison websites to see multiple quotes at once. But don't stop there. Some insurers don't appear on comparison sites, so it's worth checking with a few companies directly too. Getting car insurance is straightforward once you know what information you'll need.
Get your quotes at least two to three weeks before your renewal date. Leaving it until the last minute often results in higher prices.
2. Choose a car in a lower insurance group
Every car in the UK is assigned to an insurance group, ranging from 1 to 50. Cars in group 1 are the cheapest to insure, while those in group 50 are the most expensive.
The group your car falls into depends on factors like repair costs, security features, and how powerful the engine is. A smaller, less powerful car with good safety features will typically sit in a lower group.
If you're buying a car and want to keep insurance costs down, check its insurance group first. Moving from a group 30 car to a group 15 car could save you hundreds of pounds a year. We've put together guides explaining UK car insurance groups and which is the cheapest, plus specific breakdowns for popular makes like Ford, Vauxhall, and BMW.
3. Build your no claims discount
A no claims discount (NCD) is one of the most valuable tools for reducing your car insurance costs. It rewards you for each year you drive without making a claim.
After one claim-free year, you might get a 30% discount. After five years, this could rise to 60% or more. That's a massive saving on your annual premium. Understanding how a no claims discount works helps you make the most of this benefit.
The key is to avoid making small claims if you can afford to pay for minor damage yourself. Even one claim can reset your discount and cost you more in the long run. If you're switching insurers, you'll need to provide proof of your no claims discount to get the full benefit.
4. Increase your voluntary excess
Your excess is the amount you agree to pay towards any claim. It's made up of two parts: the compulsory excess (set by your insurer) and the voluntary excess (an amount you choose to add on top).
Increasing your voluntary excess tells your insurer you're willing to cover more of any potential claim yourself. Because you're taking on more risk, they'll typically reduce your premium.
The catch? You need to be able to afford to pay the full excess if you do need to make a claim. Set it too high and you could struggle to cover the cost after an accident. Our guide explains what car insurance excess is and how to find the right balance.
5. Add an experienced named driver
Adding another driver to your policy doesn't always make it more expensive. In fact, adding someone with lots of driving experience and a clean claims history can sometimes bring your price down.
This works because insurers see the car as less risky if it's being shared with a more experienced driver. Parents are often a good option if they have years of claim-free driving behind them.
One important warning: never make someone else the main driver if you're actually the person who drives the car most. This is called fronting and it's illegal. It could invalidate your insurance and land you with a criminal record. There are clear rules about who can drive your car on your policy.
6. Pay annually instead of monthly
Paying for your car insurance in one lump sum at the start of the year is almost always cheaper than paying monthly.
When you pay monthly, insurers typically charge interest on the outstanding balance. This can add 10-20% to your total annual cost. Over a year, that could be £100-£200 extra.
If you can afford to pay upfront, you'll save money. If you can't, monthly payments are still an option – just be aware of the extra cost.
7. Improve your credit score
In the UK, many insurers use your credit score as one factor when calculating your premium. A better credit score can mean cheaper car insurance.
If you're new to the UK, you might not have much credit history yet. The good news is there are simple steps you can take to build your score quickly, like registering on the electoral roll, setting up direct debits, and using a credit card responsibly. We've covered 7 tips to boost a low credit score that work particularly well for UK newcomers.
8. Reduce your mileage estimate
The fewer miles you drive each year, the lower your risk of having an accident. So if you're not driving much, make sure your mileage estimate reflects that.
Be honest though. If you tell your insurer you only drive 5,000 miles a year but actually drive 15,000, you could invalidate your policy. Many insurers now use telematics or ask for MOT mileage to verify your estimate.
If your circumstances change and you start driving more (or less), update your insurer. It could affect your price.
9. Secure your car properly
Where and how you park your car affects your insurance premium. Keeping your car in a locked garage overnight is the most secure option and will usually get you the cheapest price.
If you don't have a garage, parking on a driveway is better than parking on the street. And if you do park on the road, letting your insurer know it's in a well-lit area can help.
Installing an approved alarm or immobiliser can also bring your costs down, especially if you drive a car that's commonly targeted by thieves.
10. Avoid modifications
Modifying your car might make it look or perform better, but it'll almost certainly make your insurance more expensive.
Performance modifications like turbochargers, exhaust systems, or suspension changes increase the risk in your insurer's eyes. But even cosmetic changes like body kits, alloy wheels, or custom paint jobs need to be declared – and they'll usually increase your premium.
If you're looking to get cheap car insurance, it's best to keep your car standard.
11. Consider black box (telematics) insurance
Black box insurance uses a small device fitted to your car to monitor how you drive. Your insurer can see things like your speed, braking, and what time of day you drive.
If you're a safe driver, this can significantly reduce your premium. It's particularly useful for younger drivers or those with little UK driving experience who typically face higher prices.
The trade-off is less privacy and potentially restrictions on when you can drive. But if getting cheap car insurance is your priority, it's worth considering.
How UK newcomers can get cheaper car insurance
If you've recently moved to the UK, you might find car insurance more expensive than you expected. That's because most UK insurers only recognise driving experience gained in the UK.
Marshmallow is different. We look at your full driving history, no matter where you gained it. We also recognise claim-free driving from anywhere in the world. You'll just need to provide proof from your previous insurer.
This means you could get much cheaper car insurance with us. Get a quote today in minutes to see what you could save.
Use your international driving experience
When you move to the UK, your years of driving experience in other countries should count for something. Unfortunately, most UK insurers treat you like a brand new driver if you don't have UK history.
That's not fair. And it can mean paying far more than you should for your car insurance.
Marshmallow looks at your full driving history to give you a price that reflects your actual experience.
Prove your claim-free driving from other countries
In the UK, insurers reward claim-free driving with a no claims discount. Many other countries have similar systems, though they might be called something different.
At Marshmallow, we recognise claim-free driving from anywhere in the world. You'll just need to provide proof from your previous insurer.
This is usually a renewal notice or letter that shows your name, how long you've been insured, and whether you've made any claims. Different countries have different systems, so we'll work with whatever documentation you can get. We explain exactly how to provide no claims discount proof from other countries.
Get covered with any international driving licence
You don't need a UK driving licence to get car insurance with Marshmallow. We cover driving licences from every country for up to 12 months after you arrive in the UK.
That gives you time to settle in and decide whether you need to exchange your licence for a British one. No need to rush the process or pay for a licence you might not need yet. You can find out more about driving in the UK with a foreign licence and how to exchange an international driving licence for a British one when you're ready.
What's included in cheap car insurance?
When you're looking for cheap car insurance, you might worry that you're sacrificing protection for price. But that doesn't have to be the case.
All Marshmallow policies come with fully comprehensive cover as standard. That means you're protected if you damage your own car, someone else's car, or injure someone in an accident. You're also covered for theft, fire, storms, and vandalism.
The best part? Fully comprehensive policies aren't always much more expensive than third-party cover. Sometimes they're even cheaper. So you could get better protection without paying more.
How Marshmallow makes car insurance cheaper
At Marshmallow, we're on a mission to make car insurance fairer for people who are new to the UK.
We do this by recognising your international driving experience and claim-free history. While other insurers might treat you like a new driver, we look at your full driving background to give you a price that reflects your actual experience.
You can also choose to pay monthly without worrying about hidden fees eating into your budget. And every policy comes with fully comprehensive cover as standard, so you're not sacrificing protection to save money.
We're built specifically for UK newcomers. That means we understand the challenges you face and we've designed our service to make getting car insurance as straightforward as possible.
Common mistakes that make car insurance more expensive
Now you know how to get cheap car insurance, here are some mistakes to avoid that could end up costing you more:
Auto-renewing without shopping around. Your insurer is betting you won't bother comparing prices at renewal. Don't fall into this trap. Set a reminder to get new quotes a few weeks before your policy ends.
Not updating your details. If you move house, change jobs, or start driving fewer miles, tell your insurer. These changes could reduce your premium. Failing to update your details could also invalidate your policy.
Fronting. Putting a parent or partner as the main driver when you're actually the person who drives the car most is fraud. It's tempting when you're quoted a high price, but it's illegal and could leave you without valid insurance.
Withholding information. Being less than honest on your application might get you a cheaper quote initially, but it'll come back to bite you. If you need to claim and your insurer finds out you lied, they can refuse to pay out.
Making small claims. Sometimes it's better to pay for minor damage yourself rather than claiming. A small claim could cost you years of no claims discount, which will increase your premium far more than the repair cost.
You can avoid many of these mistakes by understanding what impacts your car insurance quote cost and reading about expensive driving mistakes and how to avoid them.
FAQs
How can I get the cheapest car insurance in the UK?
Get quotes from multiple insurers, choose a car in a lower insurance group, build your no claims discount, and consider paying annually to avoid interest charges. UK newcomers should look for insurers who recognise international driving experience.
Does paying monthly make car insurance more expensive?
Yes. Monthly payments usually include interest charges that can add 10-20% to your total annual cost. Paying upfront saves money if you can afford it.
Will adding another driver make my insurance cheaper?
Adding an experienced driver with a good claims history can sometimes reduce your price. But adding a young or inexperienced driver will increase it. Never add someone as the main driver if you're actually the one who drives the car most – that's illegal.
Can I make my car insurance cheaper if I'm new to the UK?
Yes. Insurers like Marshmallow recognise your international driving experience and claim-free history, which means you get a fairer price based on your actual experience rather than being treated as a new driver.
What's the cheapest type of car insurance?
Third-party only is the most basic type of car insurance and covers damage or injury to other people, but not your own vehicle. However, fully comprehensive cover can be the same cost or sometimes even lower, giving you much better value for money. We explain the differences in what car insurance you need.
Does my credit score affect car insurance prices?
Yes. In the UK, insurers can use your credit score as one factor in pricing. Improving your credit score may help reduce your premium.
How much can I save by building a no claims discount?
A no claims discount can reduce your premium by up to 60-70% after five or more years of claim-free driving. Even after just one year, you could see savings of around 30%.
