Published: 26/08/2009

With the new 59 car registrations due out next week, we thought it was a good time to share some of our tips with you on how to get a better price for your car insurance.

1. Review your existing 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.

2. Select a Higher Excess - 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 rest. Excesses usually vary between nil and £400 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.

3. Don't Pay By Instalments - 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.

4. Build up Your No-Claims Discount - 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.

5. Avoid Penalty Points on Your Licence - 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.

6. Choose a Car With a Low Insurance Group - 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 http://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.

7. Protect Your Vehicle - 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.

8. Consider Third Party Fire & Theft Insurance - 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.

9. Think About Where You Park Your Vehicle Overnight - 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.

10. Shop Around For Cover - 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.

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