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Tips and tricks for lowering car insurance costs in Great Britain

If you’re trying to finesse the lowest price of car insurance in Great Britain, there are a few things to watch out for. Car insurance marketing is clever. Its aim is to make you feel you’re getting the best deal but to maximise the insurer’s profit at the same time.

Get a ‘new’ quote from your existing insurer

Often applying to your existing insurer as a new customer produces a cheaper price than its renewal quote. Insurers put out more competitive prices to attract new customers so simply start again and you could be better off.

Consider how much you’d really claim for

It's worth considering going for a policy with a higher excess (the amount of any claim you need to pay yourself). Many people will find that claiming for less than £500 worth of damage both increases the future cost of insurance and can invalidate no-claims bonuses, meaning it’s not always worth making a claim.

So why pay extra for a lower excess? A few policies will substantially reduce premiums for a £1,000 excess, so try this when getting quotes. Of course the one downside with this is if you have a bigger claim you’ll have to shell out more, but often it’s a good balance of the risks.

Drive someone else’s car on your insurance

If you have fully comprehensive insurance then often, although not always, it includes what’s called ‘driving other cars’ cover. This provides you with Third Party cover whilst reducing your mileage and therefore the cost of your own policy.

New car, free insurance

Buy a new car and it may include free insurance for a few years. While this is only worth a few hundred a year to an experienced driver, to a young car owner it could be worth thousands and is well worth taking into account when you add up overall costs.

New Driver? Take an additional driving course

PassPlus is a Driving Standards Agency course aimed at helping new drivers (within 12 months of passing their test) become more confident on the road. There are six modules; town driving, all-weather driving, driving out of town, night driving, driving on dual carriageways and driving on motorways.

The cost of the course is around £200 but varies depending on where you live and the instructor or driving school you choose. Yet many local councils offer discounts of up to 50%, usually for those under 25, and in Wales it only costs £20 (check if your council is taking part).

Once you have the certificate some insurers then discount the price of your insurance but but as there are not many there’s a high chance you can get cheaper cover elsewhere.