Cheap Car Insurance

With the spiralling cost of insuring cars in the UK, we are shopping around more and more for a better deal. Typically, we are obtaining quotes from 3 or 4 companies before deciding who to give our money to. And rightly so.

There are a number of new players entering the market, using the opportunity provided by the internet to provide 24 hour service whilst reduce their operating costs. Reduced costs of course should mean cheaper premiums for you.

If you are going to shop around for the best deal, do make sure that you are comparing like with like. It is very easy to focus on the price, and lose sight of the fact that some policies may be offering higher levels of cover. For example, some may offer a courtesy car in the event of a claim, some may not, some include large excesses to keep the premiums lower. The cheapest isn't always the best value.

When you do ask for a quote there are a number of things that you can do to minimise the cost of your insurance:

• Consider installing some additional security

  Some Insurers offer premium discounts if the car is fitted with an insurer-approved alarm or immobiliser. It's worth checking what level of discount may be offered as systems can be expensive and it could take several years to get payback on the outlay.

• Restrict driving

  Think about who is going to drive the car regularly. You can save money by restricting cover to just one or two drivers, rather than going for an 'any driver' policy.

• Increase the excess

  Check the level of compulsory excess being applied to your policy. Typically this would be £100 (£50 for windscreen damage), but if you are willing to take a higher excess, say £250, you should see a healthy reduction in premium.

• Garage your car

  Most Insurers give discounts, if you are able to keep your car in a locked garage overnight. Even if it's not in a garage, off road parking often benefits from a premium discount.

• Mileage

  Think about how many miles you do each year. If you drive less than the average 8-12,000 miles a year it's worth enquiring about a limited mileage policy, which some insurers offer. Discounts are offered for limited mileages, but be wary of high penalties that can be applied if your selected mileage is exceeded.

• Qualifications

  Some insurers will offer a premium discount if you pass an advanced driving course. This can be as high as 10%.

  For young drivers, there is a scheme called Pass Plus, aimed at newly qualified drivers and backed by the Government. Insurers are offering discounts for those drivers who are prepared to take a few extra lessons. In a market that is nervous of young drivers, and it is increasingly difficult to find cover for three figure premiums, Pass Plus has to be worthy of serious consideration.

• Pay the premium in one lump

  Paying by instalments is very convenient, but most companies charge a fee of around 10% for the convenience. If you can afford to pay in one go it makes sense to do so.

• Pay extra and protect your No Claims Bonus (NCB)

  You typically pay an extra 5% on your premium to protect your NCB, but in the long term it is money well spent. One claims that is not your fault that you cannot recover the cost of from the other driver would be two steps back on your NCB scale, meaning a 65% discount would become only 40%.