After an expensive festive period, paying for your car insurance may look like a frightening prospect, especially if your New Year’s resolution is to tighten the purse strings. However, by investing a little time and effort into it, you could save yourself spending unnecessary money.

Bell, part of the Admiral Group, which specialises in saving money for drivers with zero no claims bonus, has come up with a list of tips that can help to reduce the cost of insurance.

• Security. Keep your car in the most secure area available. If possible park it in a garage or on a driveway. Also, include extra security on your car, such as an immobiliser and alarm.
  
  
• Mileage. Consider how much mileage you're actually going to do as you could be paying more than you need to because of an over-estimated mileage figure.
  
  
• Excess. Opt for an additional voluntary excess on your policy to bring the premium down.
  
  
• Usage. If you’ll only be using your car socially and for commuting, make sure that you’re only covered for these uses. If you’re also covered for business use, your premium will be higher.
  
  
• Named drivers. Remove any named drivers you have on your policy who will not be regularly driving the car. They can be added temporarily when needed at a small cost.
  
  
• Car value. Be realistic about the value of your car. By giving an inflated price, you could end up increasing your premium.
  
  
• Second car. If you regularly drive other cars, mention this, as it can decrease your premium.
  
  
• Car type. Don't be tempted by an expensive, powerful sports car. Driving an inexpensive car with a small engine can get you a great saving.
  
  
• Modifications. Customising your car with alloy wheels and spoilers can increase your premium greatly. If the modifications are extreme, they can even void your policy.

Commenting on these tips, Bell managing director, Sue Longthorn, said, "These tips show that there are many ways in which car owners can reduce the cost of their insurance premium. Many people are not aware of the factors that influence car insurance, and may not realise that simple changes may positively affect the cost.

“For example, a 35 year old male living in London, with zero no claims bonus driving a 2005 BMW 520i, can save around 30% by keeping the standard alloy wheels, giving an accurate annual mileage, having a £250 voluntary excess and regularly driving other cars. If he drove a Vauxhall Corsa instead of the BMW, he could then save a further 30%.”

 

Issue date: 29th December 2005