Quoted motor insurance premiums in the UK have skyrocketed, with a record 61% increase in the year to August 2023, according to the latest Consumer Intelligence Car Insurance Price Index.

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Insurers were ordered by watchdog the Financial Conduct Authority in 2022 to stop ramping up prices for loyal customers at renewal, but many drivers are still seeing premiums rise substantially at renewal.

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So here are 7 tips on how to cut your car insurance costs:

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1. Shop Around

Insurance is really really boring ... so who wants to spend more time with it than you have to? As a result, I completely understand if you just renew the policy with the company you currently insure your car with. But 10 minutes on a comparison website can save you £100s of pounds so it really is worth getting a coffee or your hot beverage of choice and just checking what's out there. Not all offers are on price comparison sites - but if you want a quick way of getting a deal check out comparison sites like Compare The Market, MoneySuperMarket.Com GoCompare.com or any other one that takes your fancy

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One thing to be aware of is that the price isn't the only thing to compare. Make sure you are comparing like-for-like. Some policies may seem cheaper on the surface, but might not offer the same level of cove.

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2. Protect your no-claims bonus

A long no-claims bonus is a great way of cutting car insurance costs. If you haven't claimed on your insurance, so you are seen as a good bet by the insurance company - you get a customer bonus in the form of lower premiums. The longer you don't claim, the bigger the premium you might get, up to certain limits.

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That's why sometimes it might be better not to claim for small issues.

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But you can also pay a small amount to protect your no-claims bonus which means you can still make limited claims without damaging your discount.

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3. Increase your voluntary excess

 The voluntary excess is the amount you agree to pay towards the cost of a claim.  If you increase the voluntary excess it usually results in a lower premium. But it does mean you will pay more towards the cost of getting something fixed.

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4. Get A Black Box

Some policies reduce the price if you agree to have a 'Black Box' in your car to monitor your driving. These are often especially good for younger drivers who can pay very high premiums because of their driving inexperience, which makes insurers nervous. By proiving you are a sensible driver, it can dramatically reduce the insurance premium. It's a bit like having a spy in the car checking how you are driving but there are big discounts to be had in return.

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5. Be careful of how many drivers are named

You might also be able to reduce the cost of your insurance if you limit the number of named drivers on the insurance policy so that only regular drivers are listed on the policy. However make sure you are honest about who drives the car and ensure you are covered if someone other than those named, actually drives the car on occasion.

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6. Pay annually

If you can afford to, paying in one lump sum rather than monthly, can also reduce the cost of the insurance.

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7. Special Insurance for Learner Drivers

If you are insuring a younger member of the family, perhaps a university student who is learning to drive, but is only back at home during the holidays, it can be worth going to a specialist insurer for extra insurance just for the student and only covering short periods of time that are at home.Put 'Learner Driver Insurance' into your search engine of choice to see some of the specialist providers.

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