Tips for saving on car insurance

Insurers calculate risk when setting the price of your car insurance premium. The higher they judge the risk of you making a claim, the more you’re likely to pay. While different insurers weigh these factors differently, the most common ones are:

Before looking at ways to save, it’s vital to remember that you must always provide accurate information when taking out or renewing a policy. Providing inaccurate information is misrepresentation, and the consequences can be serious.

If you make a claim and your insurer finds that the details on your policy don’t match reality – for example, you stated you drive 3,000 miles per year but actually drive 10,000 miles – your claim could be rejected, your policy declared void, or you could be left uninsured. The short-term saving isn’t worth the risk.

Because of this, to protect yourself and your vehicle, always keep your policy details up to date and describe your circumstances accurately.

Yes, it usually would. Most insurance policies have a compulsory excess (the amount you agree to pay towards a claim before your insurer covers the rest), and allow you to choose an additional voluntary excess on top of this. Increasing your voluntary excess typically lowers your premium.

This is because you’re taking on more of the financial risk yourself, making the insurer’s risk lower. But if you do make a claim, you’ll need to pay both the compulsory and the voluntary excess. So before increasing your voluntary excess, make sure the amount you choose is really affordable for you.

Yes - your driving record has a direct effect on your premium over time. Avoiding accidents helps you build up a no claims discount (NCD), which can reduce your premium year on year. Find out more about no claims discounts. Motoring convictions can also increase your insurance costs. A long, clean driving record is one of the most effective ways to keep costs down over time.

If you’re a younger or newer driver, a telematics policy can give you more affordable insurance. A small device or app monitors your driving habits – speed, braking, the times you drive – and safe driving rewards you with a lower premium. These policies are particularly popular with young drivers.

Some insurers offer a discount to drivers who hold an advanced driving qualification, such as Pass Plus or an IAM RoadSmart qualification. It’s worth checking whether your insurer recognises these, as not all do.

Yes, significantly. Every model of car in the UK has an insurance rating decided by a variety of factors including engine size, repair costs, and safety ratings.

If you’re in the market for a new or used car and cost is a priority, it’s worth checking a car’s insurance rating before you buy. The difference between insurance ratings can be meaningful, particularly for younger drivers where premiums are already higher.

In most cases, paying annually upfront works out cheaper overall than paying monthly. Monthly payments involve a form of credit, with interest applied – meaning you pay more over the course of the year. If you can afford to pay upfront, that’s usually the most cost-effective option.

Adding an experienced driver with a clean record as a named driver can sometimes reduce your premium – but only if that person genuinely uses the car.

Make sure your level of cover matches your circumstances. Third-party, third-party fire and theft, and comprehensive cover carry different prices. Comprehensive isn’t always the most expensive option, so it’s worth getting quotes at each level.

Also review any add-ons at renewal – breakdown cover, legal protection, courtesy car – and remove anything you don’t genuinely need. Learn more about car insurance add-ons.

Some insurance providers may offer online-only policies for a cheaper premium. So if you can manage without phone support, this could save you money.

Changes in your circumstances – a new job, a change of address, or reduced mileage due to working from home – can sometimes affect your premium. Let your insurer know about relevant changes as they happen. Not only does this keep your cover valid, but in some cases it can lead to a lower premium. With Tesco Insurance, changes to your policy can be made fee-free online in Your Insurance Account, helping you keep your costs down.

The importance of accuracy

The most important thing when managing your car insurance cost is that everything you tell your insurer is accurate and up to date. Genuine savings come from making smart, informed choices – not from adjusting details to get a lower quote. If your circumstances change, let your insurer know. And if you’re ever unsure whether something needs to be declared, just ask to make sure.

It’s easy to compare cover levels and choose add-ons with Tesco Car Insurance. And we’re here to help and support you too.

Here are just a few of the reasons to choose us:

Tesco Car Insurance is arranged and administered by Tesco Insurance and is underwritten by Tesco Underwriting Ltd.

Tesco Insurance Breakdown Cover is provided, administered and underwritten by RAC Insurance Ltd.

Motor Legal Protection is underwritten by AMTrust Specialty Limited.

Key Cover is underwritten by AA Underwriting Insurance Company Ltd. Claims are handled by Keycare.

Upgraded Courtesy Car Cover is underwritten by Tesco Underwriting Ltd.

You’ll find complete details of the cover, monetary limits, exclusions, excesses and terms in our policy schedule.