We've rounded up some tips to help you take the first steps to reduce your premium, writes Geraldine Herbert
Shop around and compare
You may feel tempted to accept the renewal quote that pops through the door but don't fall into that trap! Once you have received your renewal quote always go to the website of your current insurance provider and get a quote as a new customer and not an existing one. Insurance companies do not reward loyalty so you will always get a better one as a new customer.
You can then go back to your insurance company and ask them to match the online price. Also, compare other insurance companies online for the best deal. The more quotes you get the better your chance of finding the cheapest one. Remember to compare all insurance quotes on a like-for-like basis though - some may offer breakdown cover as an optional extra, for others it may come with the policy so check all these details.
Always put a realistic value on your car - when asked to value our cars most of us have a pretty inflated price in our mind so it is worth checking similar makes and models online to get an idea of the replacement cost. Remember in the case of an accident the insurance company will only pay out the market value of the car at the time of the claim.
Look carefully at the excess
Increasing the amount of the excess on your policy will bring down the cost of your premium but remember it will mean paying more when you claim.
Pay in full
Avoid paying for your premium monthly, it is always cheaper to pay in one payment.
Get the right cover for you
Choose between a comprehensive or third party cover carefully. Always check the differences between the price of both, as it might not be financially sound to pay the difference depending on the car's value but remember third party cover is not always the cheapest option.
Keep your car safe
The safer your car is tucked away at night, the happier your insurance company will be, so any additional security features you add can make a difference to your premium including an alarm, immobiliser or keeping your car in a garage overnight.