How to save money on your car insurance

According to the RAC, one in three drivers are paying too much for their car insurance. The cost of car insurance has been gradually rising over recent years and had reached an average of £924 by the summer of 2011. There are lots of ways that you can save money on the cost of your cover. Here, we outline the top six ways that you can pay less for your car insurance.

Build up and protect your no-claims

Most insurers offer discounts for drivers who haven\'t claimed on their car insurance. A \'no claims bonus\' can save you a significant sum on the cost of your cover and so it pays to drive carefully and avoid costly claims. The Daily Mail says that \'a long no-claims bonus is the single best way of cutting car insurance costs\'. So, you should also consider protecting your no-claims bonus. For a small additional premium you can ensure you don\'t lose your no-claims bonus even if you have an accident.

Increase your excess

Your excess is the amount of any insurance claim you agree to pay yourself. One way to reduce the cost of your cover is to increase your voluntary excess. If you agree to pay more towards the cost of a claim your premiums will fall. And, if you are not at fault in an accident, the excess can often be recovered.

Buy a car in a lower insurance band

Next time you change your car it can pay to choose a model in a lower insurance band. Your dealer will be able to tell you the insurance band of any car you\'re considering. If you decide to change your car, it is advisable to check with your insurer what effect the new model will have on your premium. Sports cars can attract a high premium and often a slightly different model or smaller engine can make a big difference in your favour.

Drive fewer miles

Consider a \'black box\'

Increasing numbers of drivers - particularly younger motorists - are allowing their insurance company to install \'telematics\' in their vehicle. This \'black box\' monitors the way you drive including factors such as speed and handling. It also tells the insurer whether you\'re on the road at dangerous times of the day (for example at rush hour). Blackbox insurance policies reward you if you drive carefully. If you can demonstrate that you are a good driver they can cut your premiums significantly.

Shop around

The Daily Mail says that \'the major crime most drivers commit against their personal finances is failing to shop around for the best premium and simply accepting your insurer\'s renewal quote\'. According to Money Supermarket, shopping around can save you an average of £237 on your car insurance. However, it\'s important that you compare cover on a \'like-for-like\' basis as cheaper policies may not offer the same level of cover. Online comparison services can do a lot of the hard work and you can adjust your named drivers and voluntary excess in order to compare prices. It is also worth checking prices from companies such as Aviva and Direct Line who don\'t feature on comparison sites.