Published: 03/03/2009

• Review your existing cover
• Select a Higher Excess
• Don't Pay In Instalments
• Build up Your No-Claims Discount
• Avoid Penalty Points on Your Licence
• Choose a Car With a Low Insurance Group
• Protect Your Vehicle
• Consider Third Party Fire & Theft Insurance
• Think About Where You Park Your Vehicle Overnight
• Shop Around For Cover
- many of us will shop around for a cheaper deal when we receive our renewal notice, but when was the last time you checked the details of the cover you are paying for? A lot of people won't have looked at their policy details for years even though their circumstances may have changed.

For example, maybe you can Reduce Your Annual Mileage, not only will you be helping to save the planet but you'll be saving some money into the bargain. The higher your annual mileage the more chance you have of an accident and therefore the higher your premiums. Perhaps you've changed your job which means that your daily commute and therefore your annual mileage is now lower than you're insured for. Another area that increases the cost of your cover is if you have Additional Named Drivers on your policy. Just check to see who is named on your policy and consider if they really need to be included on your insurance any more.

- The excess on a policy is the amount that the insurance company will deduct from any claim you make. For example, if you make a claim for £500 and there is an excess of £50 the insurance company will pay out only £450 leaving you to pay the excess. Excesses usually vary between nil and £250 and the higher the excess, the cheaper your premium will be. When you get your quote ask for a range of prices with different excesses and see how much you can reduce your premium. But just bear in mind, the higher the excess the more you will have to contribute to any claim.

- There are usually added costs if you choose to pay your premium by monthly instalments. If you can afford it, reduce your premium by paying the annual cost up front.

- One of the best ways to reduce your premium is to drive carefully and avoid accidents. In this way you will build up your no-claims discount and reduce the premium payable. You can usually start building up your no-claims discount after one year of claim-free driving. After one year you could expect a reduction in your premium of 25-30%, building to a maximum of around 70% after 5-6 claim-free years, although the exact amount of discount and terms will vary from insurer to insurer.

- Driving carefully has another bonus - you will avoid points on your license for speeding or other offences such as careless driving. Driving within the law will help you avoid the fines that the courts impose. But it's not just the fines that will hurt your pocket; picking up penalty points can also significantly increase the cost of your insurance premium. Don't give your insurance company any excuse to load your premiums.

- All cars are rated and grouped by insurance companies in order to determine the insurance premium charged. Groups go from one for the lowest price insurance right up to twenty for the most expensive. You can check which group your car falls into at www.parkers.co.uk/insurance. If you're happy with a car in a low insurance group you will definitely save money on your insurance and in many cases you'll also benefit from cheaper car tax and a lower fuel bill too.

- By fitting approved alarms and/or immobilisers you not only protect your vehicle from thieves but you will also qualify for a discount from many insurance companies.

- If your car is of low value you may find it more cost effective to opt for third party fire and theft insurance rather than fully comprehensive. Whilst this could leave you to pick up the bill for repairs to your own car if an accident is your fault the risk might be worth considering if the difference in premiums is great enough.

- If you can get your car off the road and onto a driveway or tuck it away in a garage overnight you could be eligible for a reduced premium. But, don't be tempted to lie about it because the insurance company will refuse to pay out if the car is stolen and you can't prove where it was parked.

- Always shop around for your cover as premiums vary considerably. Never accept the renewal quote offered by your existing insurer without comparing with other providers - loyalty rarely pays when it comes to choosing insurance or other financial products.

There are currently some great deals on offer from the likes of Swiftcover who certainly live up to their name by offering the quickest and simplest quote system in the market. Alternatively there is a promotion until 1st April with Tesco Car Insurance where you can bag a 15% online discount and an additional free £50 gift card for club card customers.

To check out the rest of the market, take a look at The Moneynet car insurance comparison service which enables you to compare products from over 30 leading insurers in one search, and if you like the quote you can buy online.