Car insurance discounts: how to save money on your premiums

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Car insurance is a necessity for drivers in the United Kingdom, but it can also be a significant expense. Fortunately, many insurance companies offer various discounts that can help you save money on your premiums. In this comprehensive guide, we will explore the different types of car insurance discounts available in the UK and provide tips on how to take advantage of them to lower your insurance costs.

No claims discount

A no claims discount (NCD) is one of the most common and significant discounts offered by car insurance providers in the UK. It rewards policyholders for not making any claims on their insurance over a specific period, usually one year. The longer you go without making a claim, the higher your NCD, and the greater the discount on your premium. NCD can result in substantial savings, with some insurers offering discounts of up to 70% for drivers with several years of no claims.

Multi-car policies

If you have multiple vehicles in your household, insuring them under a multi-car policy can be a smart way to save money. Insurers typically offer discounts for bundling multiple vehicles together under a single policy, making it a cost-effective option for families or households with multiple drivers.

Telematics (black box) insurance

Telematics insurance, often referred to as black box insurance, uses technology to track your driving behaviour, such as your speed, braking, and the time of day you drive. If you’re a safe and responsible driver, you can earn discounts by opting for this type of policy. The insurer evaluates your driving habits, and your premiums may be adjusted accordingly.

Advanced driving courses

Completing an advanced driving course, such as the Pass Plus or IAM RoadSmart, can lead to significant discounts on your car insurance. These courses teach defensive driving skills and aim to make you a safer and more experienced driver in various conditions.

Low mileage discount

If you don’t drive your car frequently, you may be eligible for a low mileage discount. Insurance companies often provide this discount to drivers who cover fewer miles annually, as they are considered less likely to be involved in accidents.

Garage parking

Parking your car in a secure garage can also result in lower premiums. Garaging your vehicle makes it less susceptible to theft and damage, which can lead to insurance savings.

Vehicle security measures

Equipping your car with security features such as alarms, immobilisers, and tracking devices can result in insurance discounts. These devices make it less attractive to thieves and reduce the risk of theft.

Voluntary excess

Opting for a higher voluntary excess can reduce your premiums. However, it’s essential to choose an excess level that you can comfortably afford to pay in the event of a claim.

Limited mileage policy

If you only drive your car occasionally or for specific purposes, you can consider a limited mileage policy. This type of policy restricts the number of miles you can drive each year, and as a result, the premiums are generally lower.

Defensive driving

Being a safe and responsible driver can help you secure discounts on your car insurance. Avoiding traffic violations and accidents can lead to a more favourable driving record, which many insurers reward with lower premiums.

Loyalty discounts

Staying with the same insurance provider for an extended period can lead to loyalty discounts. Some insurers offer reduced rates to policyholders who renew their policies with the same company.

Occupation discounts

Certain professions may be eligible for discounts. For example, teachers, nurses, and emergency service personnel often receive special offers and reduced premiums from some insurers.

Pay-per-mile insurance

Some insurance companies in the UK offer pay-per-mile policies. These policies calculate your premium based on the number of miles you drive, which can be particularly cost-effective for low-mileage drivers.

Additional driver discounts

Adding a more experienced or older driver to your policy can lead to lower premiums, especially if the additional driver has a clean driving record.

Multi-policy discounts

If you have other types of insurance policies, such as home insurance, you can often save by bundling them together with your car insurance under the same provider.


Car insurance in the UK can be costly, but there are numerous discounts available that can help you save money on your premiums. By understanding the various types of discounts, maintaining a clean driving record, and taking steps to make your vehicle more secure, you can significantly reduce the cost of your car insurance. It’s essential to regularly review your policy and explore available discounts to ensure you are getting the best deal possible while still maintaining the necessary coverage for your specific needs.

Now you’re in the know, why not start comparing car insurance quotes today with MoneySpider?


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