7 surprising details that can lower your car insurance premiums

The average price paid for car insurance has risen to £470, up 8% on the previous quarter. 

That number, from the Association of British Insurers, is an average: what you'll pay is calculated by your insurer using specific details about you.

It's well known that younger and newer drivers pay more to get insured (alhough, there are ways to pay less). But plenty of other factors affect our premium, such as where you live.

Despite this, research conducted by Quotezone in December 2022 found that more than 25% of car owners don’t update their personal information that affects their car insurance premiums. 

Here, we explain the factors that could help you get cheap car insurance, either with your current insurer or by switching elsewhere.

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1. Third-party vs comprehensive cover

When you start your search for car insurance, you'll be presented with three levels of cover.

These are third-party (cover only for damage your cause to others); third-party, fire and theft (also covering fire and theft damage to your own vehicle) and comprehensive cover (all the above, plus accident damage to your vehicle).

You'd think the lowest level of cover (third-party) would be cheapest, right?

You'd be wrong. Insurers charge, in part, based on how likely you are to claim, and in some cases they see 'third-party'-covered drivers as more likely to claim then those with comprehensive policies.

It's no hard and fast rule, so always run comparison site quotes for both, but don't assume comprehensive cover will cost more.

•  Find out more: best and worst car insurance companies 

2. Where you live 

Moving house is said to be one of the most stress-inducing life events you can go through. With so many things to consider, updating your car insurance may not be top of your moving house checklist. 

You're required to tell your insurer when you change address, but there's another benefit: if you're moving from an urban to a rural area, you could pay less when you next renew.

This is because urban areas with high crime rates are seen by insurers as more risky and where customers are more likely to claim.

3. Where you park 

Similarly, where you leave your car when you're not driving it has a big impact on how much your insurance will cost. 

Undercover or privately secured parking, such as a garage, is the most secure place to park your car and is therefore looked on favourably by your insurance provider. Equally, having a driveway to park your car on away from a busy road is advantageous. 

In comparison, parking your car on the roadside leaves your car vulnerable to scrapes, accidents and even theft. This could make it more likely for you to claim on your insurance and increase your premiums as a result. 

Although this is something hard for you to control, if you are worried about the cost of your car insurance, it could be something to consider when buying a home.  

4. Mileage

How you use your car affects how car insurance companies will set your premium. 

The process for most insurers is the more you drive, the more likely you are to have an accident, and therefore your car mileage is an important detail to them. Equally, if your mileage is far below average, this could be seen as a red flag, as it indicates the driver is lacking in confidence and at a high risk of an accident. 

Research conducted by NimbleFins found that a UK driver will tally up 6,800 miles per year, on average.

If you're driving substantially more miles than that, it's even more important to shop around for insurance.

If you're driving substantially fewer, you could benefit from a 'pay-per-mile' telematics policy, where the insurer tracks how far you drive.

• Find out more: how to find cheap car insurance 

5. Age and value of your car

Car insurance providers group car models into different insurance groups and price accordingly.

The groups are devised around how much you paid for your vehicle, the make and model, repair costs and performance. In most cases, the more expensive your car costs, the more expensive it will be to fix in case of an accident, and therefore the higher your insurance premiums. 

Unfortunately, there's not much you can do to help bring your premiums down if you have a newer and trendy car. However, as the years go by, your car will decrease in value, so it's beneficial to let your insurer know. Over time, your car parts could become less expensive and bring down your insurance costs. 

Depending on your make and model, there are some providers that specialise in classic car insurance. If you have an especially unique model they will be able to help you find out the exact cover you need and the costs. 

Cars that have been modified – which covers everything from alloy wheels to wheelchair ramps – can incur higher premiums and modifications must be declared to your insurer, so you should consider shopping around.

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6. Adding a named driver

Adding a driver with a good no-claims discount record to your policy is a way to bring down your premiums, especially if they're over the age of 25. 

Having more drivers covered for less money might seem counterintuitive. Insurers, however, hope that the more experienced named driver will reduce the time you (the riskier driver) spend driving the car.

Just don't put them as the main driver, if you'll be the one driving most of the time this is called fronting.

Fronting is illegal and could leave you with no insurance and a criminal record. It's therefore hugely important if the driving roles change throughout your policy and that you let your insurer know as soon as possible.  

• Find out more: car insurance no-claims bonuses explained 

7. Your job

Jobs seen as coming with high levels of stress or pressure, or unusual driving hours, can hike up the price as your chances of getting into an accident are increased. 

We're not saying that you should drop your career goals for money off your insurance, but make sure your insurer has got the right job title for you.

Not all comparison sites will hold the same list of jobs and may not have your specific profession listed. Using a site that has a more accurate description could pay off; publishers tend to pay less for insurance than journalists, for instance. 

It's vital your insurer doesn't think you've provided false details, which could lead to your claim being rejected and difficulties getting insurance in the future.

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