How to get cheap insurance in 2025

Insurance premiums take up a hefty part of the monthly household bill. Even with car insurance prices declining, over the past year, nearly a million drivers have been priced out of the car insurance market, according to Citizens Advice. 

And while home insurance premiums are showing signs of reducing, they still remain high. Add potential travel insurance, pet insurance and health insurance policies into the mix, and insurance premiums can put quite a squeeze on household budgets. 

Fortunately, there are ways to make tangible savings, which could reduce your insurance bill by hundreds of pounds this coming year. Here we pick out six proven methods of cutting back on costs – without sacrificing the cover you need.

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1. Work out what insurance cover you need

Whether you're getting cover for a new pet, an exotic holiday or the family car, step one of saving money on insurance is figuring out what you really need.  

You won't benefit from overpaying for cover you don't need. However, on the flip side, skimping on cover to cut costs could be even more of a waste of money, if you can't claim when you need to.  

With most kinds of insurance, you'll be faced with a range of cover levels and optional extras. Rather than risk being overwhelmed by the choices presented to you during an insurance search, it can help to write out a list of essential features vs nice-to-have and to calculate the level of cover you need in advance.  

Think about things like:

• The total cost of what you're planning to insure. For example, how much you'd lose if you were forced to cancel a holiday.
• What kinds of event or loss you want to be included. For example, do you want accidental damage cover with your home insurance? Do you need your car insurance policy to include a temporary replacement car while yours is being repaired?
• How much you'd be able to pay out of pocket if you needed to claim. This will help you work out how big an excess you can afford.

Find out more: check our detailed insurance guides to understand more about how different insurance products work.

2. Don't rule out more comprehensive cover

Saving money on insurance doesn't have to mean skimping on quality. 

Insurers all compete for different groups of customers – so an essential option from one firm may well cost more than a premium policy from a rival that wants your business more.

And even with the same insurer, third party and third party, fire and theft car insurance policies (which only cover damage you cause other road users and, in some cases, fire and theft affecting your own car) can sometimes cost more than comprehensive cover (which also covers accidental damage to your car). This may seem counterintuitive, but it's because insurers are aware that those who opt for less cover are more likely to make a claim . 

Bear in mind also that costs may not be confined to the up-front insurance premium. Policies with lower levels of cover, or higher excesses, will leave you paying more if you claim. This could end up costing you more than the saving made in picking a cheaper policy over a slightly more expensive one, so weigh up the saving over this risk.  

• Find out more: Compare the best and worst car insurers

3. Start shopping around early for insurance 

Generally speaking, buying insurance early (and certainly not buying last-minute) can save you money.

For example, you can usually get car and home insurance quotes several weeks before your policy renewal date. Research suggests you could pay as much as 55% more if you buy your cover the day it's due rather than three to four weeks before. 

Even the time of day you shop around can make a difference. Recent Which? research found that those buying car insurance during the day are likely to get better prices than those who shop around at unsociable hours.

When it comes to insurance that takes health conditions heavily into account (such as life insurance, health insurance or pet insurance), buying early has a different meaning. It's typically much cheaper to take out cover while you (or your pet) are young. Doing so also means you're more likely to be covered for medical conditions that develop later in life.

Find out more: Best home insurance

4. Don't default to insurance autorenewal

Most kinds of insurance use 'personal pricing', which means everyone gets their own price based on their personal circumstances and level of risk. For some, this can be an advantage – if you haven't made a previous claim, you may get a discount, for example. 

However, it means it's not as straightforward to identify 'cheap' or 'expensive' insurers as it is for other kinds of financial provider. Which? can't publish tables of the best insurance rates in the same way as we do for the best savings accounts, for example. 

The only way to get an idea of how competitive your insurer's prices are is to shop around. We think you should shop around at every renewal, to see how your insurer's quote compares with rivals.

In your renewal notice, your existing car and home insurers should clearly tell you what you paid the previous year (or would have paid with your current level of cover, if you've made any changes). This can help you spot if there have been any substantial changes. However, even if their renewal quote seems reasonable, you may still find that another provider offers equivalent cover for less. 

Find out more: What's happening to car insurance premiums?

5. Haggle with your existing insurer

If you're happy with your existing provider and don't want to switch, it doesn't mean you have to accept the renewal quote. Insurers don't like to boast about how receptive they are to haggling – and not all are. But our research repeatedly finds that many are willing to negotiate their prices if you're not happy with their latest offer.

It needn't be an overly adversarial process. If the price has risen, simply phone the insurer and politely ask to discuss why it's risen – and let it know you're considering switching. If you've researched lower prices from rival insurers for similar policies, this will support your argument.  

Find out more: How to get cheap car insurance

6. Consider specialist travel cover

If you're trying to cover your travel plans but have medical conditions, these could be adding substantially to your price. For some, these can make travel insurance virtually unaffordable. Some insurers and brokers specialise in covering people with pre-existing medical conditions, but they aren't always easy to track down. 

However, there are two official directories listing genuine specialists, who may be able to quote you a fairer price for the cover you need. To check which firms are listed, try the MoneyHelper directory and the British Insurance Brokers Insurance directory.

• Find out more: Best travel insurance companies

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1. Inspop.com Ltd for the introduction of non-investment motor, home, travel and pet insurance, who are authorised and regulated by the Financial Conduct Authority (FCA) to provide advice and arrange non-investment motor, home, travel and pet insurance products (FRN310635). Inspop.com Ltd is authorised and regulated by the Financial Conduct Authority (FCA) to provide advice and arrange non-investment motor, home, travel and pet insurance products (FRN310635) and is registered in England and Wales to Greyfriars House, Greyfriars Road, Cardiff, South Wales, CF10 3AL, company number 03857130. Confused.com is a trading name of Inspop.com Ltd. 

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Enterprise House, Bancroft Road, Reigate, Surrey RH12 7RP, company number 05125701.

4. Alan Boswell Insurance Brokers Ltd (FRN 301), for the introduction of non-investment landlord insurances, who are authorised and regulated by the Financial Conduct Authority to provide advice and arrange insurance contracts. Alan Boswell insurance brokers Ltd is registered in England at Prospect House, Rouen Rd, Norwich NR1 1RE, company number 02591252.

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