Car insurance is one of the biggest yearly expenses for drivers and according to money expert Martin Lewis, millions across the UK are still paying far more than they need to.
With car insurance premiums estimated to rise by around 3% in 2026, Lewis says now is the time to act. On tonight’s Martin Lewis Money Show Live (ITV1, 7:15 PM), he plans to reveal practical ways to avoid overpaying and regain control over spiralling premiums.
“Prices should’ve fallen for many people but they haven’t,” Lewis explained in a preview post. “I’ll be showing viewers the key tricks and strategies to guarantee maximum cover for minimum cost.”
1. Check Your Job Title Carefully
Believe it or not, the way you describe your job could directly affect how much you pay for car insurance.
Driving expert Tim Rodie from Motorpoint says that even small variations in job titles can lead to different prices as long as you remain fully honest about your occupation.
“Wording matters,” he explains. “For example, listing yourself as an ‘office administrator’ instead of ‘office manager’ could sometimes save you money. Just make sure it’s still a truthful description.”
Drivers can use the MoneySavingExpert Job Picker tool to test safe alternatives that might bring premiums down.
2. Follow the 20–27 Day Renewal Rule
Timing your renewal can make a big difference. According to Rodie, insurers often offer their cheapest quotes 20 to 27 days before your renewal date.
This period is seen as the “sweet spot”, signalling that you’re organised and low-risk. Waiting until the last minute, on the other hand, can cost you hundreds of pounds more.
Rodie also advises against auto-renewing your policy:
“You’ll nearly always find a better deal by comparing quotes or switching insurers before renewal.”
3. Park Your Car Off-Road
Your parking arrangements can influence what you pay. Cars kept in garages, private driveways, or secured car parks tend to be deemed less risky, which means lower premiums.
“If you can park off-road, do it,” Rodie says. “Just make sure your insurer’s definition of ‘driveway’ or ‘garage’ matches your situation these vary by provider.”
Insurers also factor in the crime rates in your postcode, so updating your parking details accurately can help keep your policy valid and competitive.
4. Try a Black Box or Telematics App
Once seen as a tool for new drivers, black box insurance now benefits motorists of all ages. Modern versions don’t even require installation apps like RAC Black Box use your phone’s sensors to track driving habits.
Good driving behaviour (such as smooth braking, consistent speed, and safe cornering) builds a positive score over time, leading to future discounts.
“Your savings won’t appear overnight,” Rodie notes, “but after about a year of data, many drivers see real reductions at renewal.”
5. Choose Named Drivers Wisely
Adding the right additional driver to your policy can lower risk and therefore cost.
“For young drivers especially, including a parent or older relative with a clean driving record often helps cut premiums,” Rodie says.
However, he warns against “fronting” naming someone else as the main driver when they aren’t. This practice is illegal and could invalidate your insurance.
Certain occupations also come into play. Teachers and civil servants are often viewed as lower risk, while builders or delivery drivers may increase costs slightly.
The Bottom Line
With insurance costs creeping up in 2026, being proactive pays off. By checking your job title, renewing at the right time, parking smartly, using telematics, and adding the right drivers, you can make big savings without cutting corners on cover.
As Martin Lewis often says, “The goal isn’t just to save money it’s to pay what’s fair.”
FAQs: Car Insurance Savings
Here are 10 formal, generic FAQ entries focused on car insurance topics. These are written in professional language suitable for financial advice websites, comparison platforms, or policy documents. Each includes a clear question and concise, authoritative answer.
What Factors Determine Car Insurance Premiums?
Car insurance premiums are calculated based on driver age, driving history, vehicle type, location, annual mileage, job occupation, and claims record. Insurers assess these to determine individual risk levels, with higher-risk profiles resulting in increased costs.
When Is the Optimal Time to Renew Car Insurance?
The optimal renewal period is typically 20-27 days before your policy expires. This timing often yields the lowest quotes as insurers view proactive shoppers as lower risk, avoiding last-minute price hikes. Always compare multiple providers during this window.
How Does Job Title Affect Car Insurance Costs?
Certain occupations, such as teachers, civil servants, or administrative roles, are classified as lower risk by insurers, potentially reducing premiums. Minor, honest variations in job title descriptions can qualify for discounts—use comparison tools to identify suitable phrasing.
Does Parking Location Impact Insurance Premiums?
Yes, off-road parking (garages or driveways) typically lowers premiums compared to street parking due to reduced theft and damage risk. Insurers verify postcode crime rates and may require proof of secure parking arrangements.
What Is Black Box or Telematics Insurance?
Black box insurance uses devices or smartphone apps to monitor driving behavior, such as speed, braking, and acceleration. Safe drivers earn discounts after 6-12 months of data collection; it’s suitable for all ages, not just young motorists.
Can Adding Named Drivers Reduce Premiums?
Adding experienced drivers with clean records (no claims or points for 5+ years) can lower premiums by reducing perceived risk. However, the named driver must use the vehicle less than the primary policyholder to avoid illegal “fronting.”
What Are Average Car Insurance Costs in 2026?
UK average annual premiums are projected at £500-£600 for 2026, up 3% from 2025 due to inflation and repair costs. Costs vary widely by age, location, and vehicle young drivers under 25 may pay £1,500+.
Should You Auto-Renew Car Insurance?
Auto-renewal often leads to higher costs as insurers increase prices for loyal customers. Manually comparing quotes 3-4 weeks before expiry typically saves 20-50% set calendar reminders to shop around.
How Do No-Claims Bonuses Work?
No-claims bonuses (NCB) discount premiums by 30-70% after 1-5 claim-free years, proving low risk. Protect your NCB with separate policies if switching vehicles, as one claim can reset it to zero.
Are There Discounts for Low-Mileage Drivers?
Yes, drivers covering under 6,000 miles annually qualify for 10-20% discounts via “pay-per-mile” or low-mileage policies. Provide odometer readings or agree to tracking for verification.