Shop around for car insurance. You can use Compare the Market, Confused.comMoney Saving Expert and other comparison sites to compare deals. However, make sure you check the details of each policy. Prices may not always be accurate and policies have different levels of cover.

You may find some great deals and freebies by searching online and checking out individual company’s websites. Phone operatives may have the ability to negotiate the price of their quote, so if you haggle using details of other deals you have been offered, they may drop their prices to avoid losing business.

Types of Cover

Third party/third party fire and theft

This covers you, passengers in your own car and damage to other people’s vehicles only. Fire and theft includes cover if your car is stolen or set on fire.

Fully comprehensive

Includes cover for damage to your vehicle if you cause an accident, and also covers accidental damage and vandalism. If you have one of these policies you can also drive hire cars and other people’s cars without extra insurance.

As with all insurance, the less cover you have the cheaper it costs. Figure out what you need and then find the right policy.

Claims, excess and bonuses

Depending on your policy, you will have to pay a certain amount as excess when you make a claim after an accident. You will also lose your no claims bonus, which will increase your insurance when it comes to renew.

Payment and renewal

Pay in full up front if you can. The insurance company will add extra charges for paying monthly, and buying over the internet could save more money.

Follow the same procedures as when first buying insurance for when you renew, as going with the same company as a new customer can bring extra benefits and a cheaper price.

Younger drivers

Young drivers 18-25 will generally have higher premiums, so try to find insurance companies that will cater for your age group, such as 4YoungDrivers, OnlyYoungDrivers, Co-Op Insurance and Swinton.

Tips for reducing insurance premiums for young drivers

  • Have a named driver. If they have been driving for longer and have a clean record, they can lower your premium.
  • Take a Pass Plus test. Insurers can give up to 20% off if they know you have take a Plus Pass Test.
  • Park in a garage or driveway to decrease the risk of theft and vandalism.
  • Security devices such as alarms will reduce the policy, as long as they are professionally fitted and approved by the insurer.
  • Modified cars will increase the insurance premium.
  • Don’t drive recklessly – keeping a clean licence will greatly reduce your insurance.
  • Reduce your yearly mileage. 10,000 miles a year is average, and keeping below that will earn you significant mileage discounts.
  • Do not lie on your policy. This will invalidate your insurance and mean that you will not be able to get any money. You will also find it hard to get insurance in the future and could face criminal charges.
  • Think about what car you have – a small car will be cheaper to insure and keep running compared to a large, expensive gas guzzler.

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