1. Shop around

The difference in price between various companies can be
significant. What one company may consider a high risk factor another
company may not view as so important. Insurance companies arrive at a
price for your car insurance by adding or discounting money after each
answer you give to the questions they ask you. Each company has its own
rules as to what they consider should increase or decrease your
premium. By shopping around you get a better list of prices to compare.

2. Buy a lower group car

One of the important factors that insurance companies take into
account is of course your vehicle. There are thousands of different
cars on the road so companies divide them up into groups. Most
companies will adopt the ABI (Association of British Insurers) group
rating. This splits up vehicles into 20 different groups. Generally
speaking the higher the group rating for your vehicle, the higher your
premium will be. Some companies may also combine your driving
experience with the vehicle group to get a better idea of how high the
risk is. This is one of the reasons why young drivers should consider
buying a lower group car if they want to lower their insurance cost.

3. Consider Third Party Only cover

A Third Party Only insurance policy is the minimum amount of
cover legally required - it is also the cheapest. Generally speaking
you should consider opting for this type of policy if your vehicle is
of low value. In the unfortunate event of having an accident, any
damage to a third party vehicle will be covered but any damage to your
vehicle is not. However, if your vehicle is of little value then you
may not be too concerned. It may not be worth paying extra for a Fully
Comprehensive policy in these circumstances.

4. Maintain a good credit rating

More and more insurance companies are adopting credit scoring
techniques as part of the overall calculation of your car insurance
premium. By keeping a good credit history you may avoid any additional
premium that companies add to your price for having a bad credit score.

5. Buy on the web

Many insurance providers now offer some good discounts for
buying the policy over the internet. The theory is that by purchasing
your insurance over the web, you are saving the company money by not
requiring telesales agent time and incurring free-phone costs. This
saving is passed on to you in the form of a discount for buying online.
If you have got prices by telephone then check your quote again on
their website, you may be surprised at how much cheaper it is.

6. Have a higher voluntary excess

During the quotation process you will be asked how much
voluntary excess you want to have. Insurance companies will generally
include a compulsory excess amount on the policy but give you the
opportunity to increase this if you wish. The more the voluntary excess
the lower your premium should be. However, in the event of a claim, you
will have to pay a higher amount yourself, up to the total amount of
excess on your policy.

7. Reduce your annual mileage

How many miles you do a year is a common question that can
affect your car insurance premium. The more miles you do the more your
premium is likely to be. Quotation systems and telephone agents will
often suggest an amount of miles for you. Try and work out how many
miles you will genuinely do. It may be less than the amount suggested.
Of course, you should always give an honest answer to this and other
questions.

8. Keep a clean driving record

This may be easier said than done. However, by having few or
preferably no driving convictions, you can avoid being penalised by
increases in your car insurance premium. Getting caught with a speeding
fine is often not the only financial penalty you incur. Insurance
companies take very seriously all driving convictions and it is usually
an important part of their rating process. You can expect an increase
in the cost of your insurance if you do get caught with a driving
conviction, so it pays to be a safe driver.

9. Keep claim free

This ties in neatly with number 8 above. The biggest factor
affecting the cost of your car insurance premium is how many No Claims
Bonus Years you have. Full No Claims Bonus is generally considered by
most companies to be five years or more, this can give you huge
discounts, in some cases up to 75%. By being a safe driver and avoiding
potential claims, you can continually benefit by building up your
number of claim free years. Every additional No Claims Bonus year you
get, the lower your car insurance cost should be. Some companies give
you the option of paying a bit more on your premium to protect your No
Claims Bonus.

10. Be realistic about the value of your car

Most of us have an inflated view as to what our car is worth.
When asked the value of your vehicle during the insurance quotation
process, people will often state an amount that is unrealistic and
above the real value of the car. People do this as they believe that
this is what they will get back from the insurance company in the event
of a claim. The reality is that the company will only pay out what the
car is worth at the time of the claim and not what you stated for the
quote. In fact, by giving a high and unrealistic value, you can
increase your car insurance premium as this is often a factor affecting
your final price.

11. Remove unnecessary named drivers

Additional drivers on your policy usually mean a higher premium.
A lot of people add a number of extra drivers on the policy just in
case that person needs to drive the car. However, having all these
drivers will push up the cost. By only naming drivers on the policy
that will definitely driver the car, you can lower the final cost. If
you find that an unnamed driver needs to drive the vehicle then most
companies will allow you to temporarily add a new named driver for a
small cost.

12. Improve your car security

Theft of and from your vehicle are important considerations when
insurance companies calculate your price. Most companies will give you
a discount for having better security of your vehicle. An alarm and
immobiliser will usually attract a small discount whilst having a
tracker device installed may give you a larger reduction. Some
companies may insist on having such devices installed on more expensive
and desirable cars before they even consider offering you a price.

13. Take an advanced driving test

Although not compulsory, taking an advanced driving test can not
only improve your driving skills but also help to lower your car
insurance premium. Some companies look favourably on people who have
taken the advanced test as it shows commitment to safe driving thus
lowering the chance of having a motoring accident.

14. Pay your premium in one go

By paying for your car insurance all in one go, you can avoid
paying additional interest charges that would be added on if you opted
to pay by instalments. The interest charges can be quite significant,
so if your finances allow, you can save a good amount of money by
paying for the whole lot up front. In some cases, companies may even
give you a small discount for doing this.

15. Get married

Okay so this may seem like a dramatic final way to lower your
premium. However, a number of insurance companies offer lower premiums
when your named drivers are insured and spouse as opposed to two
unmarried drivers. Some companies believe that this shows an element of
stability which is a hallmark of safer drivers and give you a discount
on this basis.