What makes car insurance cheaper
Renewal. Premiums change at renewal. Your insurer must issue the renewal notice at least 20 working days before the policy ends and cannot raise your price just because you stayed, but that does not mean its renewal price is the lowest available. Compare before you renew, every year.
The no-claims bonus. Each year you hold a policy in your own name without a claim earns a discount, and the CCPC notes that most insurers reach their maximum after five or six years. The bonus applies to the policyholder, not to named drivers, and it moves with you between insurers and between cars. A claim, even one that was not your fault, can reduce or remove it. No-claims bonus protection is an optional extra that keeps it, and step-back protection limits how far it falls.
The excess. The excess is the first part of any claim you pay yourself. A higher excess usually means a lower premium. Choose one you could pay on the day of a claim, not the highest on offer.
The level of cover. Third party is normally the lowest-priced cover and comprehensive the highest. Whether comprehensive is worth it depends on what the car is worth and whether you could replace it yourself after an accident you caused. Our third party, fire and theft page explains the middle option.
The car. Its value, age and engine size all count. A newer car costs more to insure because it costs more to replace, and a bigger engine costs more because insurers treat it as a higher accident risk.
Your record and experience. Penalty points and convictions raise premiums, and how long you have held a full licence matters. Years as a named driver on someone else’s policy count as experience you can declare. Never declare a more experienced person as the main driver of a car you mainly drive: that is fronting, and it is illegal.
The extras. Windscreen cover, breakdown assistance, a courtesy car and bonus protection each add to the premium. Keep the ones you would use and drop the ones you would not.
How to compare cheap car insurance quotes properly
Compare like with like: the same level of cover, the same excess, the same extras and the same drivers on every quote. A lower price with a higher excess or fewer extras is a different policy, not a cheaper one. Check what each policy excludes, how much the excess is per claim, and whether driving other cars, windscreen repair and a courtesy car are included. The CCPC publishes a car insurance shopping-around checklist that lists the questions to ask.
Young or first-time driver? The price is driven mostly by experience, so start with our young drivers and first-time drivers pages, and see whether a telematics policy, which prices you on how you drive, suits you. If you have points, read how penalty points affect car insurance before you quote.
To talk it through instead, call 0818 92 92 42, Monday to Friday, 9am to 5.30pm.
Sources: Citizens Information – motor insurance; CCPC – car insurance. Last reviewed September 2026.