Cutting the Cost of Car Insurance

With most of the world still in an economic crisis, car insurance is the last thing you want to be paying excessive amounts for. Research from Moneysupermarket.com, the UK's leading price comparison site, revealed that out of the six million insurance quotes it processed for the full year of 2008, the average annual car insurance premium for men of all ages is £743, which is considerably higher than a female's annual car insurance price at £454 – this is a massive £289 more expensive each year, and adds up to a difference of around £17,000 over a lifetime of driving.

As car insurance is something we all need, Moneysupermarket.com came up with this guide to help drivers reduce the amount they spend on their Car Insurance premiums.

One of the most effective ways we have found to help reduce your car insurance premium is to shop around for quotes. If you decided to go with the first quote you were given then you could end up paying up to 35% more than you would if you were to compare prices from at least 5 other providers. As there are so many comparison websites such as Moneysupermarket.com out there, comparing quotes has never been faster or easier.

Purchasing your insurance over the internet is also an easy way to save some money. When you purchase your insurance over the net you are reducing the amount that the insurance provider needs to spend on administration costs. This saving is then being passed on to you as a form of an online-discount. This online discount can sometimes be as much as 20%.

Improving the general security of your vehicle is also a brilliant way to bring down the price of your premium. A vehicle that is fitted with an alarm and immobiliser will have a substantially lower premium than a car that has no security device fitted. Equally, if your car is fitted with a tracker you are likely to see the price you pay fall even further. If you choose to park your car in your driveway rather than on the road you can also expect to see the premium dropped by as much as 5%.

Easier said than done, but keeping a clean driving record is probably the most effective way to reduce the amount you pay for car insurance. Keeping a clean record and building up your no-claims bonus for at least 5 years can see your premium discounted by as much as 75%. This is a massive saving and is well worth it at the end of the day.

Advanced driving tests and paying for your car insurance premium annually, rather than monthly are also good ways to reduce the amount you pay.

The car insurance experts at Moneysupermarket.com say that following these simple guidelines can and will significantly reduce the amount you pay on your car insurance.

This is a sponsored post by Dan Collins from www.Moneysupermarket.com.