Churchill magazine

How can you lower your car insurance premium?

Updated on: 23 September 2020

lower car insurance

You’ve bought your car and you you can’t wait to drive it. However, you need car insurance before you go anywhere. But don’t worry, it doesn’t have to break the bank.

There are several ways to reduce your monthly insurance premium, and we’ve put together a list to make things a bit more affordable.

Think about the car you’re buying

One factor that influences your insurance premium is the insurance group that your car falls into. One model can be spread across a number of groups depending on its exact specification and features. So don’t assume that the same make and model will always be in the same car insurance group.

Buy a car with a smaller engine

One of the key factors in deciding the cost of your car insurance is the type of car you drive, and particularly the type of engine it has.

Faster cars tend to be more of a risk on the road and make up a larger proportion of insurance claims. So most insurers may charge you less to insure a less powerful car.

A car with a 2l engine for example will usually be more expensive to insure than one with a 1.2l engine.

So, try cutting the cost of your insurance by swapping your car for a more modest one with a smaller engine.

What are the factors used to calculate car insurance group ratings?

Cost of parts

The lower the cost of parts to repair a car, the more likelihood there is of a lower group rating.

Repair times

The longer it takes to repair a car, the more it costs and it’s more likely to fall in a higher car insurance group.

New car values

Cars with a higher specification cost more to buy as new.


Acceleration and top speed are important factors. Our claims statistics show that high performance cars result in more frequent insurance claims.


Alarms, immobilisers and locking devices fitted as standard by motor manufacturers can help to reduce the cost of insurance claims.

How can you lower your monthly premium?

  • A happy, healthy car needs a bit more than a weekly visit to the petrol station and a monthly wash and polish. But armed with our tips on running a car you’ll be able to carry out basic and preventative maintenance yourself, saving you money at the garage and at renewal.

  • Get your children their own insurance policy rather than adding them to yours. They will build up no-claims discounts and save money in the long term, and you won’t be risking your No Claims bonus.

    Think about who is realistically going to need to use your car and only add them if you need to. If someone’s named on your policy but never uses the car, it’s an expense you don’t need to have.

  • Build up your no claims bonus. Most insurers will reward you for careful driving. So if you’ve not made a claim on your car insurance, they’ll offer a discount on your premium. It’s a way of making sure your insurance reflects your risk. At Churchill you can earn up to 65% discount on your premium if you’ve held car insurance for over 5 years without making a claim.

  • Limiting the number of miles you drive and/or agreeing to pay a higher excess in the event of a claim will bring the cost of your insurance down.

  • Off-street parking, alarms, immobilisers, trackers and other security devices can incur insurance discounts – always ask your insurer for details. Notify them about the security features of your car and consider investing in increased security for extra long-term savings.

  • Many insurance policies offer discounts to holders of an Advanced Driving licence, so consider enrolling in a course. You won’t just become a better driver; you’ll pay less for your car insurance.

  • Increase your voluntary excess. As well as a compulsory excess – an amount you’ll need to contribute towards any claims you make on your car insurance – you’ll also have a voluntary excess.

 This is an extra amount on top of the compulsory excess that you’ll be willing to contribute to settle any claim you make.

    Generally speaking, the higher your excess, the lower your premium will be. So if you’re a careful driver, above 21 years old and haven’t made many claims on your insurance it could be worth increasing the voluntary excess to reduce your premium.

Don’t forget to check our quick and simple online car insurance quote to see how much you could save with Churchill.

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