Published: 31/07/2007

The cost of car insurance has been getting more expensive and with claims for accidental damage and personal injury on the rise, the cost of insuring your car is likely to increase year on year. Some may counteract these rises by telling a few fibs on their application. However telling your insurance company that your car is kept in a locked garage overnight, when it is in fact squeezed between No 14's caravan and the skip outside No 18, is like giving them a 'get out of jail free card'.

A recent study has shown that one in ten of us will misrepresent the truth when purchasing a car insurance policy to get a cheaper premium, with the most regularly used fib being where the car is parked overnight, the next untruth will be deliberately under estimating the value of the car.

One of the most common little gems that insurance companies are getting wise to is parents insuring a car for their teenager with the policy in the parents name and the son or daughter listed as a named driver. Insurance companies know this as 'fronting' and take a dim view of it. In the event of a claim you can expect some searching questions from the insurance company about who is really the main driver and if the insurer doubts the validity of what you are telling them may refuse to pay out. Obviously there are very few grannies out there whose taste in cars stretches to a Mini Cooper with blacked-out windows and big alloys! So be careful with this one, your child can only genuinely be a named driver if they are occasional users and you are the main driver - any other situation means that the car must be insured in the child's own name.

However, don't despair there are a number of ways that you can legitimately reduce your premiums – here are a few:

• Search and buy online - Always search the market to find a competitive premium. Choose a relevant (not just cheap) policy that covers you for the things that matter to you and be sure to compare policies on a like for like basis. This latter part is often overlooked. Insurers also tend to offer you an extra discount if you buy online.
  
   
• Third Party cover v. Comprehensive cover – If your car is of low value think about insuring for third party fire and theft. This will almost definitely reduce your quote.
  
   
• Excesses – Always check the excess you are obliged to pay in the event of a claim. By opting for a higher voluntary excess you can reduce the cost of your cover. But remember this is the amount you have to pay before your insurer pays out.
  
   
• Drive Carefully – A good driving record is key to getting a low insurance premium. Respect the rules of the road; avoid claims and convictions as these will instantly add to your premium. By building up your no claims bonus insurers will in return reward you with lower premiums.
  
   
• Security - If you have access to a garage, make the effort to use it rather than parking your car on the roadside. Alarms and immobilisers will act as a deterrent to thieves. Always remove detachable stereos and valuable items from the vehicle. Insurers will take into account any security measures you have in place.
  
   
• Annual v. Monthly premiums - Pay your premium in full each year if you can afford to. This way you will avoid the high APR's that many insurers charge for monthly instalments.
  
   
• Annual mileage - Inform your insurer if your annual mileage is low. If you use your car to commute to work, expect more expensive premiums.
  
   
• Tell the truth - Never twist the truth when getting a quote for your car insurance. Insurers can refuse to settle a claim if the information you have initially provided them with is found to be untrue.
  
   
• Update - You must remember to keep your insurer up to date of any changes to your driver profile. You are obliged to inform your insurer of any convictions, changes of address or modifications to you vehicle – all of which can affect the premium you pay.
  
   
• Car Rating – If buying a new car consider the insurance rating. It may be worth going for a lower performance vehicle if there is a substantial saving on your insurance premium.
  
   
• Optional Extras – there are a number of optional extras that can be added to your policy such as free courtesy car, legal expense or breakdown cover. Consider if you really need these as they all add to the premium.
  
   
• Younger drivers should avoid buying expensive high performance cars. Instead they should invest in a smaller cheaper car to start with. Although it is more expensive in the short term they should look to take out a policy in their own name as early as possible. This way they can build up their no-claims discount and benefit from cheaper premiums later on.