Insurance companies reward safer drivers. By making a few small yet crucial changes to your car and your motoring habits, you could knock a good chunk off your annual car insurance premium. Here’s how to go about it. 1. Drive more safely: It’s as simple as that.

A safe driver is less likely to be involved in accidents that might jeopardise their no-claims bonus – and a no-claims bonus of five- to ten- years can represent almost 70 per cent off your premium with companies like Ensure and Cooperative. If you’re a born boy-racer, you might even think about insuring your no-claims bonus so that you don’t lose it in the event of an accident.

2. Make your car safer: Owners of ‘safer’ cars are likely to be charged a lower premium on their car insurance. If you decide to change your car, you should check with your insurer that the new model won’t be significantly more expensive to insure. To make your existing car safer, consider fitting an approved alarm, immobiliser or tracking devise. This can represent a discount of between 5% and 10% depending on your insurer. Lastly, think carefully about your parking options. Cars which are parked in garages are on driveways are far cheaper to insure than those which are kept on the roadside. See if you can negotiate off-street parking, or clear the junk out of your garage and keep your car in there.

3. Agree to a mileage restriction: It’s a simple calculation – the more time you spend on the road, the more likely you are to have an accident. Some car insurance companies will offer you the option of restricting your mileage in order to save money on your premium. Others, such as Norwich Union, working in conjunction with ASDA Finance, even offer a ‘pay-as-you-drive’ car insurance scheme aimed at younger and low-use drivers.

4. Prove your ability: You may be a careful driver, but it’s important to offer your car insurance company proof of this. By joining the Pass Plus scheme or taking an advanced drivers course, you can show them that you are a low-risk proposition. Some insurers will offer discounts of up to 35 per cent to those prepared to take further driving lessons.

5. Don’t compromise your policy: Adding a young and inexperienced driver to your policy may be false economy. It is likely that the premium will be calculated on the youngest driver, who will generally not have a no-claim bonus.

With the exception of a bank or savings accounts, car insurance is the financial product most commonly held by consumers in the UK.

This is hardly surprising really as motor insurance is compulsory if you drive a vehicle. The road traffic act requires all motorists to be insured against their liability for injury to others (including passengers) and for damage to other people’s property. It is an offence to drive your car or allow others to drive it without insurance.

What some might find as a surprise is that car insurance premiums, which rose steadily through the late nineties and early 2000’s are now generally levelling out and in some cases actually falling. This is partly to do with the proliferation of online insurance brokers coming into the market.

Compare Prices

The fact that there is now so much more choice, not just in for car insurance but in the whole auto industry with new and used cars now easier to buy everywhere from specialist online car finders such as Fish4 to Ebay, offers even greater incentives to shop around and find a bargain.

The best technique for getting cheaper car insurance is to compare car insurance quotes. It’s a lot easier than it used to be too with many car insurance companies/brokers/agents offering comparison tools which allow customers to search for and compare quotes from dozens of top insurers and brokers in the UK. Just simply type 'car insurance' into Google and see what comes up, you're sure to find an assortment of insurance comparison websites.

Renewals

Too many of us stay with the same insurer for too long and often end up paying hundreds of pounds a year more than we need to. We tend to only look into new policies when premiums become very noticeably too dear.

Think closely about accepting a car insurance renewal quote from your existing insurer without checking around. Have a good look at the market before every renewal, as your loyalty (or perhaps that should read ‘lethargy’) is unlikely to be rewarded by your existing insurer offering discounted rates.

Modifications

Statistically many insurers have found that a driver of a modified vehicle is more likely to be involved in an accident, or a more costly accident.

Unless you want to pay a fortune on your car insurance avoid modified cars. Modifications don’t just include fitting larger engines or other performance-enhancing changes; they can also be defined also including fitting noisy exhausts and even simply painting Go Faster Stripes.

Almost half of all insurers won't quote for a 'mod' and most of the rest will charge you extra as the reduced competition amongst insurers inflates prices.

Many insurers tend to be more willing and more flexible over the phone if your vehicle has a modification. People like dealing with people. It’s often worth getting a “non mods” quote online with a reputable car insurance UK provider such as Co-operative Insurance, for example, and then call the insurance companies to discuss your particular requirements in person. Do this with the best three or four online quotes you receive using the best price you get as a benchmark and see whether it’s possible to get the prices down.

Occupation

Insurance rates can be dramatically influenced depending upon your profession. If you’re a journalist, in the licensed trade, HM Forces, a professional entertainer, sportsmen journalist, musician, in the media or are in what is considered a high-risk occupation it’s likely that you’ll be regarded as a relatively poor risk and your insurance will work out more expensive than say a teacher or a nurse. Steady respectable jobs attract better premiums.