If you drive a car in the UK, it’s compulsory to have car insurance. Third party insurance protects other road users in case you have an accident that causes them injury, or damages their vehicle. Drivers also have the option of buying additional cover for fire and theft, or comprehensive insurance which covers you and your vehicle if you cause an accident.

In recent years many drivers have been victims of price-walking by car insurance providers, which saw millions pay over the odds when their policies auto-renewed each year. The General Insurance Pricing Practices (GIPP), introduced by the Financial Conduct Authority (FCA) in 2022, effectively banned price-walking. However, there are still ways to make sure you’re getting the best value for money on the car insurance you require.

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Providers

There are around 100 car insurers in the UK, but in 2022 the top 10 providers accounted for around 70% of the market. Insurers are jointly regulated by the Bank of England Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).

How to save money on car insurance

<aside> 🛠️ For the most up-to-date practical advice, read our guide to Saving money on car insurance

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Thanks to the General Insurance Pricing Practices (GIPP), introduced by the Financial Conduct Authority (FCA) in January 2022, car insurance providers can no longer increase premiums for existing customers at the end of an introductory contract. Instead, insurers now have to offer existing customers fairer deals, in line with what new customers are offered as their introductory rate. They also have to make it more accessible for customers to cancel an auto-renewing contract.

This has provided much needed protection for households, and you’re now unlikely to be ripped-off by price-walking to the extent that was so prevalent in recent years.

However, just because your insurer has to offer you a fairer renewal price than in recent years, that doesn’t mean there aren’t better deals available. It’s still worth keeping track of your renewal date and evaluating what insurance you need. When it comes to shopping around for a better deal, there are a few top tips to bear in mind:

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.

How to switch car insurance