Budget & cheap car insurance

Certain car-related costs can't be changed, like the price of fuel, tax, and to some extent MOT and servicing. But car insurance costs can be brought down, which is why many people take out budget car insurance as a way of keeping overall running costs as low as possible.

Low cost car insurance usually takes the form of a no-frills policy like Hastings Essential. It allows you to pay for the basics, without paying a penny for cover you don't think you'll need.

A policy like Hastings Essential does what it says on the tin: it covers the essentials. If you're involved in an accident, we'll provide cover for damage to your car, and we'll also pay out if your car's stolen or damaged by fire – minus the agreed excess. Hastings Essential does offer comprehensive cover.

But in order to keep your premium as low as possible, your personal belongings inside your car aren't protected and you won't be covered for medical expenses, personal accident or legal expenses.

The main benefit of a budget car insurance policy is it can be cheaper to buy than other types of cover. But that's not to say it's always the most affordable option; in fact, the average price of this type of cover has increased in recent years, due to the number of claims made from drivers on these policies.

The best thing to do is be open-minded when you search for car insurance and compare all levels of cover: third party, third party fire and theft, and comprehensive. That way, you can be sure you're getting the best level of cover for your needs and budget.

Aside from affordable car insurance, there are some things you can do that may bring down the price you pay for cover. Here are three top tips:

Improve security

Fitting additional, approved security features to your car could lower your insurance costs, as an insurer may consider it to be at less risk of being stolen. It's one of the only modifications you should make to your car if you want to lower insurance, and not increase it!

Improving security also means keeping your car somewhere safe each night, like on your driveway or in your garage. If you parked your car on the road before, then your insurer could lower your premium.

Change what and how you pay

Increasing your excess when you take out cover could lower your insurance costs. But don't set it very high – you need to be sure you'll be able to pay the excess if you end up needing to make a claim.

Paying for cover in one lump sum is also sometimes cheaper than monthly instalments, as the cost doesn't incur any interest.

Drive safe

A clean driving record and claims-free history will help you to secure affordable car insurance year after year.

If you've only recently started driving, a telematics policy like Hastings SmartMiles could help you to save on insurance. It allows your insurer to monitor your driving, with your premium largely based on how good a driver you are!