Car insurance premium increases explained

Average customer rating: 4.3/5
Written by Kenneth Young
Reviewed by Adrian Taylor
Last updated March 11, 2024

What is a car insurance premium?

Your car insurance premium is the amount you agree to pay an insurance company in exchange for them insuring your vehicle. While having cover has a great many benefits and advantages, you may find your car insurance premiums still rise even if your driving habits haven’t changed and you’ve made no claims.

Expert tips for saving money on your car insurance premiums

Our resident car insurance expert, Adrian Taylor, has helpful tips for saving on your car insurance premiums.

Adrian Taylor
Executive General Manager – General Insurance

Compare every 12 months

You should compare your car insurance policy every 12 months (as a minimum) when you receive your renewal notice. What was an acceptable premium 12 months ago may now be a bad deal compared to what’s in the market.

Have your circumstances changed?

If your circumstances have changed (e.g. you’ve changed address or used your car less), you should let your insurer know immediately as you might be on the wrong type of policy or be eligible for a refund if you’ve moved to a less risky area.

Savings can often be found

If you’re managing a tight budget, savings can often be found by comparing car insurance policies. If you decide to stay with your current insurer, see if you can restrict the age of drivers or increase your excess payment to lower the cost of your policy (your excess is the amount you pay should you make a claim, so remember to choose an excess that is manageable).

Understanding car insurance premiums

Why does car insurance go up every year?

Why do car insurance premiums differ between insurance providers?

Why does my car insurance seem expensive compared to others?

Lowering my car insurance premiums

How can I lower my car insurance premiums?

How will a car insurance claim affect my premium?

Meet our car insurance expert, Adrian Taylor

Adrian Taylor
Executive General Manager – General Insurance

As Executive General Manager of General Insurance at Compare the Market, Adrian Taylor is passionate about demystifying car insurance for consumers, so they have a better understanding of what they’re covered for. Adrian’s goal is to make more information available from more insurers, to make it easier to compare and save.