MOTORISTS are in for another bumpy ride as insurers are planning to hike premiums again.

Despite rises of 15pc in the past year, most insurers plan rises of at least 10pc next year.

A recent survey, by consultancy firm Deloitte, found that half of the country's motor insurers plan increases of between 5pc and 10pc. Another fifth of insurers expect to pump up their premiums by more than 10pc and a staggering 85pc of insurers said they plan increases in premiums.

The hikes come on the back of a rise of 15pc in premiums in the past year, according to the latest figures from the Central Statistics Office.

The planned hikes are in spite of a dramatic improvement in safety on our roads, with injuries and fatalities down for the third year in a row. Less fatalities and less injuries mean less claims and lower payouts, which should drive down insurance costs.

The Injuries Board is up and running smoothly, as well as delivering savings of €100m each year. Prices across the economy have come down by 6.5pc. This has to feed into the industry's cost base.

So what can motorists do to avoid being hit by new hikes by insurers?

Pay the premium in full, upfront

If you have the money, then it will save you to pay your premium in one lump sum rather than paying monthly in instalments.

Of course, it is convenient to pay your premium in small chunks each month, but you will pay heavily for the privilege. An interest rate of 24pc added to the overall premium is not uncommon.

Do not automatically renew

You can save up to €400 on your premium by shopping around, according to the Financial Regulator.

Start early, seeking out quotes when your insurance is coming up for renewal. Get yourself at least four or five quotes.

It is dangerous to assume that just because you got a good deal from your broker or insurer the last time you renewed your insurance, you will get a good deal the next time.

In fact, the opposite is often the case. Insurers often "try it on" by sending out outrageously high renewal quotes in the hope that some people will be fooled into accepting a rip-off such as this.

Accept an excess

Be prepared to accept an excess, ie an amount you are prepared to fund yourself when you make a claim.

Accepting an excess of €300 or more can make a dramatic difference to the premium you are asked to pay.

Park securely

The safer parking location for your car, the lower the premium you will have to pay.

If you have the car in a garage, and it has an alarm and/or an immobiliser, that would be preferable from a premium point of view.

Word your occupation carefully

Your occupation can affect your car insurance premium. Some occupations attract higher premiums than others.

So if you are a journalist or estate agent, for example, you are likely to pay more because people in these professions generally claim more and are classed as higher risk, according to the British website lovemoney.com.

If you are unemployed, then state your previous occupation and the fact that you are seeking a job. For example, state "unemployed architect" instead of "unemployed". Some insurers are refusing to cover those who have lost their jobs.

Buy insurance online

Financial products tend to be less expensive when purchased over the internet and online savings can be expected for car insurance.

Companies like uchoose.ie, 123.ie and quotedevil.ie tend to be cheaper than going directly to insurers.

Go for third-party insurance

Decide whether you need comprehensive insurance or third-party fire and theft. Don't over insure, advises the Financial Regulator. Remember, insurers will only pay out what the car is worth at the time of the accident.

Drivers would be wise not to under insure either, because that will make it difficult to replace your car if you need to.

Women pay less

Women tend to have fewer claims and so pay lower premiums than men.

So one option is to put the car insurance of a couple in the wife's name and have the husband insured as a "named driver".

Some have argued that to do this you need to re-register the car in the wife's name. But a number of insurance brokers asked about this said there was no need to re-register the car.

There is nothing illegal about insuring the family car or cars in the wife's name, as the property of a couple is regarded as common property.

No-claims discount

Build up your no-claims discount. You can lower your premiums by up to 70pc if you have not made a claim or a claim has not been made against you. If you want to switch insurers, check first whether you will be able to carry over your full no-claims discount.

- Charlie Weston

Irish Independent