Published: 05/03/2008

1. 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 excess. Excesses usually vary between nil and £250 and the higher it goes 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 remember, the higher the excess the more you will have to contribute to any claim.
   
   
    
2. Don't Pay In Instalments- There are usually added costs if you choose to pay your premium in monthly instalments. If you can afford it, reduce your premium by paying the annual cost up front.
   
   
    
3. 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.
   
   
    
4. Avoid Penalty Points on Your Licence- Driving carefully has another bonus - you avoid points on your license for speeding or other offences such as careless driving. Not only does this avoid the fines that the courts impose but penalty points are also one of the major causes of higher insurance premiums. Don't give your insurance company any excuse to load your premiums.
   
   
    
5. 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.
   
   
    
6. Protect Your Vehicle- By fitting alarms and/or immobilisers you not only protect your vehicle from thieves but you will also qualify for a discount from many companies.
   
   
    
7. Reduce Your Annual Mileage- Not only will you be helping to save the planet and get fitter you'll save money at the same time. The higher your annual mileage the more chance you have of an accident and therefore the higher your premiums. How many more reasons do you need to leave the car at home?
   
   
    
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 taking 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 quotes - loyalty rarely pays when it comes to choosing insurance or other financial products. The Moneynetcar insurance comparison service enables you to compare 98% of the available market in one search and if you like the quote you can buy online.