The best car insurance money saving tips

With car insurance premiums going up and up, you may be surprised to learn, according to the RAC, one out of every three Brits actually pays more money than they need to.

That's why, if you're desperate to reduce your premiums, these car insurance money saving tips can really help.

Quick tips to lower your insurance premium

Choose your car carefully - One of the smartest car insurance money saving tips is the easiest. Before you rush off to buy that car you absolutely must have, check what your premiums will be. Of course, you're desperate to drive a new Audi A4, but your budget might only accommodate the cost of insurance for a second-hand Toyota Yaris. You need to know that before you buy, and not after, when you're stuck with a car you can't afford to insure.

Remember, your insurance company is not your friend - Many people have the mistaken idea their insurance company is there to protect and help them. They're not. Their goal is to make money, and to take as much of it away from you as they can. Stop being so 'loyal' to an insurance company, and shop around, until they've proven they're giving you better rates than anyone else.

Don't automatically renew - A huge percentage of British drivers get that insurance premium renewal in the post, and they pay it immediately. Don't. If you want to save money on car insurance, get quotes from other companies to see what they can offer before renewing your insurance with your existing company. In some instances, you could save 20 percent or more on premiums.

Get protected no claims - If you have a four year no claims bonus, pay for 'protected no claims'. What that means is, should you have an accident or someone else causes damage to your car, you will probably not lose your no claims bonus (in some types of accidents you will). As a no claims bonus can mean up to a 60 percent deduction in an annual premium, it's well worth paying a protected no claims fee.

Pay higher voluntary excess - If you're willing to pay a higher amount towards the cost of a claim (say £250 instead of £100), that will immediately reduce your premium. After all, if you're lucky, you'll never have an accident, so won't need to pay it.

Who is insured is important too

Remember too, when you look at car insurance money saving tips, it's not just how you insure a car, but the driver you choose to insure that can cut your insurance premiums enormously.

If you live in a household where another person has a better driving record than you, put the car insurance in their name instead of yours. You can still drive it, you just won't be the primary insured.

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