Our top tips for cheaper car insurance

Shop around for the best quote

It might sound obvious but shopping around is the best way to get a quote that gives you the cover you want at the right price. Thousands of people just automatically renew their insurance every year and so may miss out on a better policy for them.

There are 4 common ways of shopping for car insurance:

1. Use a car insurance comparison site

Rather than spend hours on the web or on the phone to different insurance companies, the easiest way to see what's available is to use an insurance comparison site like Gocompare.com. You will be able to compare prices and see what is included in each policy; this way you can make sure you have all the cover you want at a price that is right for you.

Advantages:

• Less time consuming
• Access to most of the UK's leading insurers
• Compare prices AND cover
• Get a quote 24 hours a day, 7 days a week

  Disadvantages:

• Can't speak to someone instantly to answer queries

2. Phone individual insurance companies

If you have the time, you can phone a number of insurance companies to get quotes.

Advantages:

• Queries may be answered straight away
• Good for modified vehicles or where different cover is needed as these cases will need to be considered individually

Disadvantages:

• Time consuming
• May be subjected to aggressive sales techniques
• You only get one quote from that insurance company
• No or limited comparison against other insurance companies
• Limited to looking for insurance during the company's working hours

3. Looking at insurance companies own sites on the Internet

The Internet has revolutionised the shopping experience and this includes looking for car insurance. Many insurance companies have an Internet presence where you can fill in your details and quickly get an insurance quote.

Advantages:

• Get a quote in your own time
• No pushy sales people to deal with
• Get a quote 24 hours a day, 7 days a week

Disadvantages:

• Time consuming
• No or limited comparison against other insurance companies
• You only get one quote from that insurance company

4. Visiting a broker or insurance company on the high street

For those of us with enough time and energy, another way to get a car insurance quote is to visit your friendly high street broker.

Advantages:

• Queries may be answered immediately
• Good for modified vehicles or where different cover is needed as these cases will need to be considered individually
• Brokers will compare a number of different insurance companies on your behalf

Disadvantages:

• Time consuming
• Limited to looking for insurance during the company's working hours
• Limited access to those insurance companies the broker deals with

Choose a small car

Get a car with a small engine, for example a 1.1 litre rather than a 1.6 litre, which is in a low insurance group. You'll also pay less road tax for a small car.

Avoid modifications

Modifications (upgrades to styling, audio or performance) may look good, but they mean a big hike in the price of their insurance. Alloy wheels, body kits and performance upgrades make vehicles more attractive to car thieves. Modified cars also tend to be more expensive to fix than ordinary cars.

Limit your mileage

Limit the number of miles you drive each year and make sure you tell your insurance company as they look at the number of miles you drive when working out your insurance premiums.

Get a Pass Plus certificate

Younger drivers may want to sit a Pass Plus certificate. This is a training scheme for new drivers, it will typically cost around £100 but if taken immediately after you pass your test it may cut premiums by up to 35%.

Improve security

Consider improving your vehicle's security. Fit an alarm or immobiliser, and if you have alloy wheels, invest in locking wheel nuts.

Park with care

If you can, park your car in a garage overnight. Parking off the road can lower the chance of your car being vandalised or stolen.

Increase your voluntary excess

Choosing a higher voluntary excess when you take out your policy will reduce the price of your insurance policy. Remember though, if you make a claim you may have to pay that excess before the garage will give you your car back.

Restrict the number of drivers on your policy

Only have one additional driver on your policy, adding more will increase the cost of your insurance. If you can, avoid having anyone under 25 on your insurance as the younger a driver is, generally the more expensive your policy will be.

Reduce your cover type

If you have an older car which is not worth very much, it may be worth getting Third Party, Fire and Theft rather than comprehensive cover.

Build up your No Claims Bonus discount

The best way to reduce your insurance costs is to drive claim free and build up your No Claims Bonus discount.

Is the cheapest quote automatically the best?

Not necessarily. Most of us want to pay as little as possible for our car insurance, but this can sometimes mean we miss out on cover we would see as essential should we make a claim on our car insurance.

For example, if you use your car for business reasons, you may need to make sure your policy provides you with a courtesy car if your vehicle needs repairs after an accident, so your work isn't interrupted.

The best way to go about buying an insurance policy is to have an idea of what cover you want and use a comparison service like Gocompare.com which shows you a range of prices and the benefits of each policy on offer. You can then make an informed choice based on your cover needs and budget.

Why has the price of my car insurance gone up?

That is the million dollar question! There are many reasons that car insurance premiums increase, some most common ones being:

• Insurers are having to pay increasing costs when paying out for claims
• Your insurer may have changed the type of customer they are looking for
• The discount you received for being a new customer has been removed
• You may have made a claim in the past year which reduced your no claims bonus level
• You may have had a motoring conviction in the past year
• You may have moved to an address that is considered a higher risk area
• You may have added a driver to your policy whose driving record is not as good as yours
• You may have changed your car to a more expensive or powerful one

On the other hand, you could have changed to a small car and if so your premium should go down from last year.

Gocompare.com will search through the UK market and offer some of the most competitive quotes available saving you the time and hassle of going to each individual company yourself. Don't forget, we're available 24 hours a day, 7 days a week.

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