Quick answer
According to WHEELSTREET data, Lithuanian drivers overpay on car insurance by an average of 30-50% simply by not comparing providers. The easiest savings come from raising your deductible to €300-500 (saves 15-25%), bundling KASKO with MTPL (saves 10-15%), and using telematics devices that can cut premiums by up to 20%.
Insurance is a compulsory expense. But that doesn't mean you have to overpay.
This article covers concrete steps to reduce your premium without losing meaningful protection.
Insurance Types: What You Must Have, What You Don't
Compulsory: Third-Party Liability (MTPL)
What it is: Motor Third Party Liability insurance — the legally required cover in every EU country.
What it covers: Damage you cause to others — other people, their vehicles, their property.
Cost: 150–400 €/year (depends on car, driver history, and your no-claims class)
Can you avoid it? NO. Required by law everywhere in Europe.
Optional: Comprehensive (CASCO)
What it is: Insurance for your own vehicle.
What it covers:
- Accidents where you are at fault
- Theft
- Vandalism
- Natural events (storms, flooding, hail)
- Animal collision (deer strikes are surprisingly common)
Cost: 300–1,500 €/year (varies heavily with vehicle value)
Do you need it? It depends — see below.
Partial / Mini-Comprehensive
What it is: A middle option — selected cover only.
Examples of what it can cover:
- Theft and fire only
- Natural damage
- Glass/windscreen cover
- Animal collision
Cost: 100–400 €/year
Best for: Older cars where full comprehensive would cost a disproportionate share of the car's value.
Do You Actually Need Comprehensive Cover?
Comprehensive is worth it when:
| Situation | Why |
|---|---|
| New or nearly-new car | High value = high financial risk if written off |
| Finance lease / HP agreement | Often contractually required |
| Expensive car (>15,000 €) | Too much to lose without cover |
| New or inexperienced driver | Higher statistical accident risk |
| No emergency savings | Can't self-fund 5–10k € for repairs |
You can drop comprehensive cover when:
| Situation | Why |
|---|---|
| Old, low-value car (<5,000 €) | Premium can equal 10–20% of car's value |
| Experienced, claim-free driver | Lower risk profile |
| Have emergency savings | Can absorb repair costs without insurer |
| Work car — cosmetic damage acceptable | No financial case for full cover |
Calculate Whether It's Worth It
Simple rule:
If annual comprehensive premium > 10% of car's value → probably not worthwhile
Example:
-
Car value: 8,000 €
-
Comprehensive: 600 €/year
-
600 / 8,000 = 7.5% ✅ Still worth considering
-
Car value: 4,000 €
-
Comprehensive: 500 €/year
-
500 / 4,000 = 12.5% → Consider dropping full cover; explore partial options
10 Ways to Reduce Your Insurance Bill
1. Compare Quotes (Every Year, Without Exception)
The problem: Most drivers renew with the same insurer out of habit, without checking alternatives.
The fix: Get quotes from at least 3–5 insurers every renewal.
Where to compare:
- Insurance comparison websites (vary by country: comparethemarket, check24, uswitch, etc.)
- Direct insurer websites
- Insurance brokers
Typical saving: 10–30%
2. Increase Your Voluntary Excess
What it is: The amount you pay yourself before the insurer pays out on a claim.
Example:
| Excess level | Comprehensive premium | You pay on a 500 € claim |
|---|---|---|
| 0 € | 800 €/year | 0 € |
| 150 € | 650 €/year | 150 € |
| 300 € | 550 €/year | 300 € |
| 500 € | 450 €/year | 500 € |
Saving: 15–40%
Recommendation: 150–300 € excess — a good balance between lower premium and manageable self-exposure.
3. Pay Annually
The problem: Monthly or quarterly payment plans include a hidden finance charge built in.
Saving: 5–10%
Example:
- Annual payment: 600 €
- Quarterly: 4 × 165 € = 660 €
- Monthly: 12 × 58 € = 696 €
If you can pay upfront, the annual option is always cheapest.
4. Choose Lower Engine Power
How insurers calculate premiums: Engine output is a significant rating factor.
| Engine power | Typical MTPL impact |
|---|---|
| Under 70 bhp | Base rate |
| 70–100 bhp | +10–20% |
| 100–150 bhp | +20–40% |
| Over 150 bhp | +40–80% |
In practice: A 2.0 TSI 190 bhp can generate a premium 50% higher than a 1.5 TSI 150 bhp version of the same model — same car, very different premium.
5. State Your Annual Mileage Accurately
How it works: Lower mileage = lower statistical risk = lower premium.
| Annual mileage | Typical effect |
|---|---|
| Under 5,000 km | −10–15% |
| 5,000–15,000 km | Base rate |
| 15,000–30,000 km | +5–10% |
| Over 30,000 km | +10–20% |
Important: State an honest figure. If you significantly exceed the declared mileage and make a claim, the insurer may reduce or refuse the payout.
6. Build and Protect Your No-Claims Bonus (NCB)
What it is: A discount that grows each year you drive without making a claim.
| NCB years | Typical discount |
|---|---|
| 0 (new driver) | Base rate |
| 1 year | −5% |
| 3 years | −15% |
| 5 years | −25–30% |
| 10+ years | −40–60% |
Important: NCB is transferable between insurers — always declare it when switching.
Protected NCB: For a small additional cost, you can protect your NCB so one claim doesn't reset it.
7. Multi-Policy Discount (Bundle Your Insurance)
How it works: Same insurer for MTPL + comprehensive = multi-policy discount.
Saving: 5–15%
Better still: Car + home + contents + life with one insurer can unlock larger loyalty discounts.
8. Choose Approved Repairer Network
How it works: Some insurers offer lower comprehensive premiums if you agree to use their approved repair network (rather than any garage of your choice).
Saving: 10–20%
Trade-off: You give up free choice of repairer. Consider whether that matters to you.
9. Named Driver Strategies
Young driver (under 25) or newly qualified: Adding an experienced named driver as the primary driver can reduce premiums significantly.
Saving: 20–50% in some cases
Important: The person listed as the primary driver must be the person who actually drives the car most. Fronting (naming someone else as primary driver to get a lower premium) is insurance fraud.
10. Remove Add-Ons You Don't Need
Add-ons to reconsider:
- Legal cover (if you have it through another policy or employer)
- Courtesy car (if you have another vehicle)
- Travel assistance (if covered by separate travel insurance)
Saving: 5–15%
Review what's included in your policy and remove anything genuinely redundant.
How to Compare Insurers Properly
When comparing quotes, ensure the comparison is like-for-like:
- Same excess amount
- Same annual mileage
- Same optional extras
- Same insured value for comprehensive
Varying any of these makes the comparison meaningless.
What to look beyond price
- Claims handling reputation: A cheap insurer with poor claims handling is worse value than a more expensive insurer that pays out quickly and fairly
- Network of repairers: Relevant if you opt for approved repairer cover
- Digital tools: App-based claims, dashcam integration, smart claims tracking
What to Do After an Accident
Immediate steps
- Ensure safety — hazard lights on, move clear of traffic if possible
- Call emergency services if anyone is injured (112 in EU)
- Document everything — photos, video, witness details
- Complete an agreed accident statement (European Accident Statement form)
- Notify your insurer — within 24–48 hours
Key rules:
- ✅ Do not admit fault at the scene — let the insurer determine liability
- ✅ Stay at the scene until police or both parties are satisfied
- ✅ Do not have repairs carried out until the insurer has inspected the vehicle
- ✅ Keep all receipts and documentation
FAQ
Does comprehensive insurance cover accidents where I am at fault?
Yes — that is the entire point. Comprehensive covers your vehicle even when you caused the incident. MTPL only covers damage you cause to others.
Can I have insurance in one country and drive a car registered in another?
Yes, within the EU. Your MTPL cover is valid throughout the EU under the Green Card system, though you should inform your insurer.
What if my insurer refuses to pay a claim?
- Request the refusal in writing, with reasons
- Escalate to your national financial ombudsman or insurance complaints body
- Legal action is the final option
Is it worth insuring an old, low-value car comprehensively?
Usually not. For cars under 5,000 €, the annual comprehensive premium often represents a significant fraction of the car's total value. Consider partial cover (theft, fire) or MTPL only, and maintain an emergency repair fund instead.
How long does no-claims history last if I don't renew?
Most insurers honour NCB for 2 years after the policy lapses. After that it may be lost. Check with your insurer.
Pre-Renewal Checklist
Before buying or renewing car insurance:
- Compared at least 3 insurers?
- Chosen the right excess level?
- Stated accurate annual mileage?
- Declared full no-claims bonus history?
- Removed genuinely unnecessary add-ons?
- Considering paying annually to avoid instalment surcharge?
- Read what is and isn't covered?
The best time to save on insurance is now — compare quotes, not just at renewal, but also mid-term. Insurers value new customers more than loyal ones, and switching is straightforward.
You might also find useful:
- 🛡️ Car insurance at WHEELSTREET — MTPL and comprehensive options
- 🔍 Car sourcing service — find a car with lower insurance group rating
- 🚗 Used cars at WHEELSTREET — cars with verified history and no hidden claims
- 💰 Leasing calculator — calculate full monthly cost including insurance
WHEELSTREET ☎ +370 610 33377 | wheelstreet.lt
