Tips to reduce car insurance costs in 2025

Imagine you’re about to renew your car insurance, and the quote makes your jaw drop! It turns out it's higher than ever! In 2025, this is not just your story, it’s a common thread among drivers across the UK. 

The average cost of car insurance in the UK is a staggering £757, which, although a (slight) decrease compared to last year, is still shocking. This statistic from a recent Confused.com report paints a grim picture for drivers, especially young drivers, who are hardest hit by these soaring costs. 

But before you start to arrange your car insurance, take a deep breath (and read this article). Nationwide Vehicle Contracts offers a lifeline with some simple yet highly effective tips to tackle skyrocketing premiums. We discuss: 

It might sound simple, but checking you’re registered to vote can be a massive help to your credit score, which insurers often use to calculate policy costs. 

It’s a small job that could make a big difference. Here’s how to get it sorted: 

• Check your status - Head to gov.uk/register-to-vote to see if you’re registered to vote. 
• Sign up - All you need is your name, address, and National Insurance number. 
• Keep it updated - Moved house? Change your name? Update it ASAP to keep your credit report accurate. 
• Track your score - Use free tools like Experian or Credit Karma to monitor your credit score.

Letting your policy rollover might seem like the easy option, but it's rarely the cheapest. Despite a rule change in 2022 that banned loyalty penalties, most insurers still reserve the best rates for new customers. 

Here’s how to get ahead of your renewal: 

• Know your date - Mark it down and set a reminder around a month in advance. 
• Switch off auto-renew - Call your insurer or log in online to disable it. Make sure you get written confirmation. 
• Start comparing - Get quotes 2-4 weeks before renewal and note down the best deals. 
• Use quotes to negotiate - Insurers will often match a competitor if they know you’re ready to leave. 
• Avoid gaps - Make sure your new cover starts at the moment your old one ends. 

Treat your car insurance like a mobile contract. The minute it ends, there are better deals out there waiting for you. 

When it comes to insurance, timing really does matter. Studies have shown that renewing around 23 days before your policy ends can lead to much lower prices than leaving it last minute.

Here’s how to make the most of it:

• Set your calendar - Aim to start looking 20–26 days before your policy expires. This is the sweet spot for finding the best rates. 
• Prepare your documents - Before you start the process, ensure all your vehicle and personal information is up to date, and gather any documents you might need. 
• Get quotes early - Prices tend to rise closer to your renewal date.
• Negotiate like a pro - Use cheaper quotes as leverage with your current provider.
• Lock it in - Don’t wait too long,  good quotes don’t last forever.

You’ll hear this one a lot, but it’s because it works. Different insurers rate risks differently, so the same driver can get quotes that vary based on hundreds of pounds. 

• Review your current policy - Before shopping around, understand what’s included and excluded with your current policy to know exactly what coverage you need. 
• Use trusted sites like CompareTheMarket, Confused.com, or MoneySuperMarket. 
• Don’t just chase the cheapest deal, check customer reviews and coverage levels. 
• Look for discounts such as low mileage, black box, and multi-policy. 
• If you’re happy with your provider, see if they’ll match the best deal you find.

We get it, paying monthly is easier on the wallet. But, if you can stretch to a lump sum, you’ll avoid the interest charges that most insurers add to monthly plans (which can be as high as 20%). 

How to make it doable: 

• Plan ahead - Use a budgeting app to put away a monthly amount. Using a budget planner or financial tracking app can be helpful. 
• Compare costs - Ask your insurer to break down the savings for upfront vs monthly. 
• Look for discounts - Some insurers even offer a bonus discount if you pay in full. 
• Use your savings account - Consider setting up an automatic monthly transfer, it adds up fast. Trust us. 

Upgrading your vehicle's security doesn’t just protect it from theft, it shows insurers you’re a low-risk driver. That could mean cheaper premiums.

Start with these steps: 

• Double-check what you already have - Most new cars include alarms and immobilisers.
• Add extras - Dash cams, trackers, and steering locks are all simple, effective, and insurance-friendly.
• Keep receipts - You may need to show proof of installation.
• Tell your insurer - Security updates won’t count if you don’t notify them.

Here’s something most drivers don’t realise: your job title can affect your car insurance quote. Insurers use your occupation to assess risk, and some titles cost more. Therefore, making a small (but legal) change to your job title can save you money. 

• Be truthful, but flexible - You have to tell the truth, as lying could invalidate your insurance. But, describe your role in different legitimate ways. 
• Try variants - For example, a ‘writer’ might be cheaper than a ‘journalist’. 
• Use insurer-approved titles - Don’t make a job title up, stick to the pre-listed titles on quote forms. 

A solid no-claims bonus is one of the best ways to cut your car insurance costs, and it also gives you something to boast about with your friends. 

The longer you’ve gone without making a claim, the more you save. However, one small accident could wipe out years of clean driving! 

• Build it up over time - Even one year without a claim can bring your premiums down. 
• Protect it - This feels like stating the obvious, but don’t get into an accident. Also, once you’ve earned 3+ years, consider paying a little extra to protect your bonus. 
• Ask for details - Different insurers have different rules, always check what’s included in your no-claims bonus protection before adding it. 

Bringing down car insurance costs is all about being proactive, and these eight tips put the control back in your hands. 

From timing your renewal to upgrading your security, small changes can lead to big savings. 

But, if you’re still driving a car that’s expensive to run, insure, and maintain, there’s another option. 

Explore our car leasing deals and get behind the wheel of a brand-new, safer, more efficient car with fixed monthly payments and road tax included.