Car insurance costs fall and experts give top tips on how to secure the best deal
- Perry Richardson
- Feb 22
- 3 min read
Updated: Feb 23
Car insurance prices have dropped for the first time in years, offering a welcome opportunity for drivers to find a better deal. The Consumer Prices Index (CPI) has reported an 11% decline in premiums over the past year, marking the first major reduction since 2020.
With vehicle ownership costs still rising, motorists are being urged to shop around. The arrival of new registration plates in March is likely to prompt a surge in policy comparisons, with many drivers looking to make savings.
Industry experts from Vertu suggest several ways to cut costs without compromising on cover. The key advice remains clear—avoid auto-renewing with an existing provider, ensure the right level of cover is in place, and be accurate when declaring personal details.
Vertu’s top five tips for insurance include:
Don’t rush, shop around
You may be eager to get on the road and live life at full throttle, but car insurance is definitely not a race. With so many policies available, you need to shop around and make sure you find the best deal for you.
Try to avoid the temptation of auto-renewing with your existing provider as this is not always the cheapest option. There are plenty of comparison sites online that can help you find the right car insurance for your needs.
Choose the right level of cover for you
Before deciding which type of insurance is right for you, it’s crucial to understand the key differences between the three levels of cover.
Third party - this is the legal minimum which covers damage or injury to others caused by you, but not repairs to your own vehicle.
Third party, fire and theft - this option includes cover for yourself too if your car is stolen or damaged by fire.
Full comprehensive - this covers a range of issues such as accident repairs, vandalism, and accidental damage.
Vertu recommend drivers opt for fully comprehensive insurance, as this provides the most coverage out of all three policies, giving you peace of mind and a more enjoyable driving experience.
Always put the right main driver down
New drivers typically have to contend with inflated insurance premiums when they first get on the road. As tempting as it may be to declare a parent as the main driver, this is an illegal act and could result in a £5,000 fine and six points on your licence. So, make sure you are always listed as the main driver.
Instead, consider adding an extra driver with a good driving history to your policy to help reduce rates. Just remember, they should never be listed as the main driver.
Additionally, when filling out your insurance application, make sure you give your correct date of birth. By not filling in your form honestly you are committing insurance fraud, and you won’t be covered if you do try and put a claim in!
Stick to your mileage
When you take out insurance you need to give an estimation of how many miles you expect to drive in the year.
If for some reason you go significantly over your estimated mileage, your car insurance could be invalidated. To ensure this never happens, be proactive in contacting your insurer about any changes to your estimated mileage.
Consider a black box policy
While black boxes do help to cut costs for careful drivers, many believe – and are put off – by the idea that black boxes impose curfews on drivers.
Although this has been true in the past, it is no longer the case. Black boxes are now used to record your driving data such as your driving speed, braking, the time of day you drive, and how sharply you turn corners.
And even though they might not have a curfew limitation anymore, they can impact your insurance. Vertu say that by driving sensibly, your insurance will be cheaper, as you are considered a ‘low-risk driver’ and less likely to make a claim. But be mindful that the opposite is also true, with reckless driving potentially causing your premium to go up.
