As part of the DIY Nous method for saving money on household utilities, this is a step-by-step approach after you have named your car insurance provider and double-checked the terms of your contract with them.

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Can I cancel this service?

If you drive a car in the UK, it’s compulsory to have third-party car insurance.

Can I reduce this service?

Third-party insurance is a legal requirement, but if you have additional cover (fire and theft, or comprehensive insurance) you might think reducing it to the basic minimum would save you money. In fact, insurers are often more likely to deem you ‘low-risk’ if you have comprehensive insurance, making it cheaper than third-party options. So before jumping to reduce your coverage, get quotes for all options. You might also consider increasing your excess (the amount you pay towards any claim you make) to reduce your premium. However, bear in mind that this could leave you out of pocket if you have an accident.

How to save money

Thanks to the General Insurance Pricing Practices (GIPP), introduced by the Financial Conduct Authority (FCA) in 2022, price-walking has now been banned and you are protected from the worst practices of auto-renewing insurance policies.

However, there are still ways to make sure you’re getting the best value for money if you are shopping for car insurance.

Never auto-renew your car insurance. Your current insurer has to offer you a fairer renewal price when you renew, but it’s likely there are cheaper options available.
Check as many comparison sites as possible. Different car insurers and products appear on different comparison sites, but you’ll also discover different prices for the same product/insurer depending on the comparison site. It is time consuming, but you’ll find the cheapest price by comparing as many as you can.
Get quotes around 3-4 weeks before. According to Money Saving Expert, you’ll get the best price by buying car insurance 23 days before the start date. It really does pay to set a reminder in advance of your renewal date, because prices increase the closer you get to the start date.
Try adding a responsible additional driver. It may sound counter-intuitive, but if an insurer considers you ‘high-risk’, adding someone who’s low-risk as an additional driver could significantly reduce your quote.
Test different (truthful) job titles. Job title affects your quote. As long as your job title is truthful, try selecting different options to see if it makes your quote cheaper.
Try negotiating with your current insurer. Once you’ve found a better deal, it’s always worth speaking to your current insurer to see if they’ll beat the new price.

If you are struggling

The cost of living crisis has affected millions of households and if you’re struggling to pay essential bills, you’re not alone.

Some households may need urgent or more specialist help than we can provide. If you’re unable to pay a bill, the first step is to contact your provider and tell them. They are best placed to make sure you are receiving any financial assistance you may be entitled to.

<aside> 🆘 See the list of specialists at Cost-of-living help

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Last updated: December 2022