If your car insurance is up for renewal, take a look at these top tips to help keep the costs down...
Car insurance might not be the most exciting topic ever, but it's one that affects many of us. And from early next year, it's going to affect even more of us.
That's because new proposals will be introduced which will mean that it will be an offence to simply be a registered keeper of an uninsured vehicle - even if the vehicle is not being driven.
Right now you can only be prosecuted if you're uninsured and caught behind the wheel. But from early 2011, all of this will change, and no evidence that the car was in use will be required.
That said, if you're currently not using your car and it's been left uninsured for one year, you can still seek exemption if you make a statutory off-road notification (Sorn). You also won't have to pay vehicle tax in this case.
But for those of you who will need to get your car insurance sorted before the end of the year, or for those of you simply looking to renew your policy, here are some top tips for keeping your costs down.
Shop around
No surprises here - but the first thing you should do is to shop around for car insurance policies. Prices can vary considerably, so it really is worth doing. In fact, shopping around could save you an average of £300 each year, according to the AA.
And it's really easy to do - just take a look at our online comparison tool where you can compare a wide range of policies and see what works out cheapest for you.
Increase your excess
The excess is how much you have to pay out when you make a claim. When you apply for your insurance, you'll be asked how much voluntary excess you would like - in other words, how much you want to pay on top of your compulsory excess.
The higher the voluntary excess you pay, the less you're likely to have to pay for your car insurance premium - so it's certainly worth thinking about.
Keep it secure
Keeping your car in a secure place can help to reduce your car insurance premiums. So if you have a garage or driveway, make sure you use it and state that you are doing so on your application. It's also worth adding an immobiliser, alarm and tracker to your car as this will reduce the risk of it being stolen, and therefore bring your premium down.
Avoid paying monthly
If you decide to pay for your car insurance in monthly instalments, rather than in one go, you're likely to end up paying around 10% to 20% more. So you're much better off paying the full amount upfront.
If you think you will struggle to do this, it's worth paying with a 0% on new purchases credit card. The Tesco Clubcard Credit Card, for example, offers an interest-free period on purchases for 12 months - so you'll have a whole year to pay off your balance without worrying about paying interest. Just make sure you do pay off the balance in full by the time the 12 month period is up - otherwise you'll be hit with an interest rate of 16.9%.
Add a driver
If you're a younger, less experienced driver, it can be a good idea to add an older driver to your policy as this can bring down the cost. That said, you need to be aware of fronting - in other words, when you put a fake 'front' on a car insurance policy you've taken out in order to bring down your premiums.
An example of this is if you insure a car in your own name and then add your teenage son as a named driver to the policy, but your son is actually the main or only driver. This is illegal. You can read more about this in This lie could cost you thousands.
Consider your needs
If your car is getting on a bit and really isn't worth much, it can work out cheaper to simply get the bare minimum of cover for your car. This is called third party cover and only covers your liability to others - so you won't be covered for any damage to yourself or your vehicle.
Meanwhile, third party, fire and theft will give you third party cover, as well as cover to pay for repairs or a replacement of your car if it's stolen or destroyed by fire.
Comprehensive cover, on the other hand, is more expensive, but will provide cover for any damage caused to your car, and other cars that might be damaged by your vehicle if you have an accident, as well as injury to yourself or others.
Go the extra mile
If you want to bring down your premiums even further, you could take an advanced driving course. Taking the Pass Plus training course could shave as much as 30% off your car insurance premium because it's designed to help new drivers become safer and more confident. Although the course is aimed towards new drivers, you can take the course at any time.
Bear in mind however, that you will have to pay between £125 and £160, but many local councils support the scheme and will subsidise the cost - Staffordshire County Council, for example, offers a subsidy of up to 66% off the course cost.
Protect your no-claims bonus
If you haven't claimed on your car insurance for a year, you'll earn a no-claims bonus which can help to bring your premium down. So successfully managing to build this up each year can be well worth it.
Once you've reached five years, you could save as much as 65% on your car insurance! What's more, at this stage, you can also choose to protect your no-claims bonus.
Should you decide to do this, your premium will increase slightly, but you're likely to save money in the long-run. That's because this protection allows you to make at least one claim (usually two) before losing your bonus. So it's definitely worth considering.
Modifications
Try to avoid modifying your car - adding spoilers, alloy wheels, or boosting the engine size is likely to increase your premium. And in some cases, they could void your policy. So avoid tinkering with your car too much.
Pay as you go
If you don't drive your car on a regular basis, you could consider a pay-as-you-drive insurance policy. How much you pay will depend on how often you drive and at what time of day. You can find out more about this in How to save money on your car insurance.
Don't forget that if you want more tips on how to lower your car insurance premiums, lovemoney.com can help. First, adopt this goal: Slash your insurance costs. Next, watch this video: Don't make this car insurance mistake. Finally, why not have a wander over to Q&A and ask other lovemoney.com members for hints and tips about what worked best for them?
More: The best and worst value cars in Britain | Choose the right car insurance policy