3 ways to reduce your car insurance premiums in 2023

According to the Association of British Insurers (ABI), car insurance premiums across the UK soared to an all-time high in December 2022.

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Higher costs equal higher premiums

This rise has been attributed to a variety of factors, including increasing repair costs, rising accident claim volumes and inflationary pressures. The ABI also noted that insurers have been forced to pass on higher costs.

This means that for UK motorists, cheap car insurance is becoming increasingly hard to find. Industry experts have warned that these upward trends are likely to continue in the coming months and years, meaning consumers will need to shop around for the best deal as we welcome in the New Year.

3 ways to reduce your car insurance premiums in 2023

Shopping around for cheap car insurance can be a time-consuming task, but there are a number of things you can do to reduce the cost in 2023.

Firstly, make sure you’re comparing like-for-like policies.

Some insurers may advertise cheap premiums but have significantly higher excess levels or fewer benefits than their competitors. Don’t be tempted by cheap headline prices if these are ultimately not the best deals for you when adding up all the additional extras.

Second, consider raising your voluntary excess to mitigate the risk of making a claim.

This can reduce insurance premiums significantly, but make sure you’re comfortable paying a higher excess in the event of an accident.

Finally, don’t automatically renew with your current insurer. It sounds obvious but a staggering 52% of drivers allowed their policy to auto-renew in 2021!

Shop around regularly and don’t accept the first quote you’re given. It is often considerably cheaper to switch providers than stay loyal to one company.

Conclusion

The UK is in the midst of a cost-of-living crisis, with car insurance being an area of personal finance that is particularly sensitive for cash-strapped motorists.

Finding cheap car insurance in January 2023 is, however, possible, but you may need to spend a little longer comparing policies than in previous years.

Don’t be afraid to ask insurers directly for a lower rate; you may be pleasantly surprised by how much they can save you.