Car insurance - don't pay more than you need

We're coming up to one of the busiest times of the year for buying car insurance. However, most drivers will fail to shop around for cover and as a result, will end up paying over the odds. Motorists can make an average saving of £152 a year by taking the time to shop around and compare premiums.
Minimising the cost of your renewal is not as difficult as you think and with our tips below you can quickly be driving a hard bargain.
Don't get caught in the renewal 'jam'
Put the brakes on automatic renewal. It's easy to understand why so many drivers stick with their current insurer when their policy comes up for renewal - it's quick and convenient. And an increasing number of insurers are renewing policies automatically, so rather than you contacting your provider to confirm you want to renew the policy for another year, it will be done automatically unless you get in touch to say otherwise.

This is something to watch out for - even if your insurer offered the most competitive quote last year, it's renewal offer is unlikely to be the best. Insurers tend to offer their most competitive prices to new customers as they want to attract new business. This comes at the expense of existing policyholders.

When it comes to insurance, shopping around should be a must every year. Otherwise you are likely to end up paying way more than you need for your car insurance. And comparing prices is easy - by using our comparison tool - you can compare quotes from more than 80 direct insurers and brokers.
Pay annually rather than monthly

Many insurers charge interest - often in excess of 20% - if you opt to pay monthly. Instead, if you have the cash to spare, cut out interest charges by paying your premiums upfront.
Make security a priority

Unsurprisingly, the higher the perceived risk of theft or vandalism, the higher the insurance premium. Where you live and the type of car you drive are both big factors, but there are ways to reduce your premium even if you're classed as high risk.

By buying a car with an alarm fitted or having one fitted you can see your premium drop dramatically. Likewise, immobilisers and trackers also keep your premium down. Opt for a well-known brand such as Thatchams which is widely recognised by insurers.

Keep your vehicle parked preferably in a garage if you have one - you could slash 5-10% off your premium. If you don't have a garage, park off road and outside your own property, at night.
Flashy cars may look great but they cost

Think before you buy a new car. That swanky sports car may look rather nice but before you commit to buying it, investigate how much the insurance will be - you could be in for a shock. However, by opting for a model with a smaller engine or by going for a slightly older vehicle, the car of your dreams could still be yours.
Still determined to keep that sports car? Consider specialist insurers

If you drive a car that is deemed "high risk", such as a high-performance car, you could be better off comparing policies from specialist car insurers. Many insurers will offer unique policy options such as agreed valuations and offer cheaper cover. However, never assume that specialists are always the cheapest - make sure you shop around first and compare the best price.
Go 'green'

Not only are you helping the environment but you'll be boosting your savings too when you opt for a low emission motor. Insurers often offer extra discounts if you drive a more environmentally-friendly car.
Do you really need those extras?

One of the ways insurance companies make money is by encouraging motorists to opt for unnecessary extras. Don't take out comprehensive cover if your car isn't worth very much - it is simply not worth it. Opt for third party only or third party fire and theft policy and see the price reduce dramatically.

Courtesy cars are also another addition you may not need. Being insured temporarily on a friend or relative's car may be more cost efficient should you be unlucky enough to have your car stolen or damaged.
Agree to a higher voluntary excess

The more you're willing to cover in the event of an accident, the lower your premiums will be. However, don't go overboard - only set the excess at a level you could comfortably afford. Remember, if you do need to make a claim you will have to pay that amount and it could prove a false economy - opting for a £500 voluntary excess is unlikely to knock £500 off your premium.
Split the difference by avoiding small claims

Accidents happen but it's not always worth making a claim. Sometimes it can be worth getting an estimate from a repairer you trust before contacting a car insurance company about a minor accident or damage to your car. Many problems might cost little more than the excess to resolve yet a claim would lead to a higher premium next year and it could affect your no-claims discount.
Opt for temporary cover for extra drivers

Limiting the number of additional drivers on your policy will bring your premium down substantially. Insuring teenagers in particular can send your premium rocketing, Instead of having them on a policy all year round you could take out temporary cover as and when they need it.
Mobile phones ... why they're a bad call

Not only are you putting your own and other motorists and pedestrian's lives at risk by using a mobile phone while driving, you risk hiking up your insurance premium too. Its estimated that a third of Brits still use handheld mobile phones while driving despite the fact that this has been illegal since December 2003. Not only does this risk a £60 fine if caught but moneysupermarket.com research has found that it could also those caught using their phone while driving could result in a 50% increase in your premium. Some insurers won't even quote for divers who've been caught using a phone behind the wheel.

So switch the phone off, invest in a hands-free kit, or pull over to a safe stopping place when the phone rings.
Boy racers be warned - safe drivers get the best deals

Points don't always mean prizes - and certainly not in the case of motor insurance. Some insurers companies are willing to overlook a single speeding conviction but two or more will see your premiums rise by 25% on average, with some insurers even pushing up premiums by as much as 74% for repeat offenders. Even better, consider taking an advanced driving test or Pass Plus course for new drivers, if you want to see your premium go down even further as they are looked on favourably by insurers.
Pride yourself on your 'no claims bonus'

Just as you take pride in your car, take pride in your no claims record. Building up a no-claims bonus could potentially save 70% on your car insurance premiums over five years. While some accidents cannot be avoided you can reduce your risk by ensuring the car is well-maintained particularly over the winter months. Check all tyres for condition, pressure and tread depth; ensure lights and indicators are working and clean; examine the anti-freeze strength; and keep windows clean to enhance your vision. Be vigilant on the road, don't tailgate and be aware of other road users.
Why low mileage pays

Finally, if you don't use your car very often agree to a mileage cap. It is a simple but sensible option. According to the AA you could earn a 5-10% discount with a 12,000 cap on annual mileage, with lower caps earning higher discounts.