10 steps to save on insurance

Clever comparison
Don’t waste your time by randomly phoning insurance companies. Without some background research into how competitive they are, you’ll greatly reduce your chance of getting the best deal.

Use online comparison sites such as Parker’s Compare, confused.com and gocompare.com to see who are going to be among the cheapest companies for YOU – it varies from person to person.

Use at least three to get a feel for the market (different companies are signed-up to different comparison sites) and then, once you’re happy with the results, take the top four or five results and hit the phones to push the price down even further.

But before you get to the phoning stage, there are already a few tricks you can try to shave a few more £££s off…

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Buying new? See what the dealer can offer
This trick works best for younger drivers who pay large insurance premiums. Older drivers with many years no-claims bonus have less to gain.

Car makers will often offer free insurance as an incentive to buy a car. But there’s nearly always a catch – you’ll have to take out the manufacturer’s finance. It’s nearly always more expensive than getting a loan from a bank. So compare how much the total repayment of the loan is with a bank or building society with the dealer’s. Parker’s finance comparator is a good place to start.

Then find out how much insurance usually is for the car you’re interested in. If the dealer’s finance is competitive, then go for it – the insurance is genuinely free. Otherwise you’re better off with a lower cost loan and arranging the insurance separately.

You also have to consider whether the car is any good by checking reviews and whether it suits your needs.

Check out what offers – including free insurance – are currently available in Parker’s Manufacturer Promotions round-up

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Don’t forget the basics
Give yourself the best chance of saving money by telling the insurance company of how you can reduce the risk to them (which in turn reduces the amount you pay them).

Tell the insurer of any security devices fitted, even if it’s a steering wheel lock. Mention if the car is garaged or securely parked overnight.

Low mileage driver? Opting for a larger voluntary excess can help reduce the premium, though it does leave you with more to pay in the event of a claim.

Build up your no-claims discount. It takes a few years of incident-free driving, but lower premiums make it all worthwhile.

Driving a more insurance-friendly car helps lower premiums. If you can live with a less glamorous model, it will be cheaper to insure.

Did you know? Younger drivers can sit a Pass Plus exam, which offers more advanced driver training and can save as much as 30% on insurance premiums.

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Play the job title name game
Be more precise about what you do for even bigger savings - you’ll be surprised at what's on offer.

But be honest. This trick is about finding a better way to describe your job – not lying about what you do. Insurance companies need an accurate description of what you do, but there are often several ways to describe the same job.

You need to ask yourself whether someone could reasonably describe it as your job. Putting electrician if you work in a supermarket is illegal and will invalidate your insurance. But the word reporter is an acceptable alternative to journalist and makes a difference to your premium.

Did you know? Parker’s saved around £7 by putting its occupation as a reporter rather than a journalist.

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Add a named driver… or two
Adding family members as named drivers onto your insurance can actually reduce the premiums, especially if they have an unblemished driving history, have a few years driving experience and are (sorry chaps) female.

You should always try it, even if the named driver rarely (or even at all) uses the car.

The reason it works is that insurers see the risk as being lower as it’s spread across a number of drivers. Lower risk = cheaper premiums.

This is different to ‘fronting’ – where the main driver is listed as only a named driver to save money – which is illegal. Typically this happens when young men are insured on their mum or dad’s car.

Many people think the savings are worth the risk. But insurance companies look for any reason to avoid paying a claim and could investigate you after an accident or theft.

That means the cover could be invalid and you’ll have to cover all costs yourself. It will also make getting insurance more difficult (and expensive) in future.