Car insurance premiums are at a four-year high, according to research by MoneySuperMarket, the comparison website.

NAOMI CAINE
 

Car insurance premiums are at a four-year high, according to research by MoneySuperMarket, the comparison website.

The average annual premium is now £423, up £24 compared with March last year.

But there are ways to cut the cost of car cover. The Herald has put together ten top tips for cash-conscious motorists.

Don't stick with the same insurer at renewal

Almost a quarter of motorists (23per cent) automatically renew their car cover with their existing insurer. But loyalty rarely pays. MoneySuperMarket calculates that you could save more than £200 by shopping around for quotes at renewal.

Drive carefully

More insurers these days use technology to monitor driving habits. They then reward careful drivers with lower premiums.

Aviva, for example, encourages motorists to record their journeys with the Aviva Drive app, which uses GPS technology to track the vehicle's progress. When you have recorded 200 miles, you are given a score out of 10 - and the higher the score the bigger the saving. The company's figures show that 38per cent of customers scored 7.1 or more and saved an average of £104 on their annual premium.

Dashboard cameras fulfil a similar function and are becoming more popular with motorists. Some insurers offer discounts of up to 12per cent on premiums.

There's also telematics, or black box insurance, which works in much the same way. The insurer fits your car with a black box that records when, where and how you drive. Again, the safer the driver, the lower the premium.

Don't claim

If you don't claim on your policy, you can earn a discount on your premium - and the discounts can be generous. If you can manage five consecutive claim-free years, you could earn a discount of 75per cent or more. It therefore makes sense to pay for any minor claims out of your own pocket to safeguard your no-claims bonus.

Some insurers run accelerated bonus schemes that allow you to build up your first year's discount in 10 months rather than 12. The schemes can be particularly useful for younger drivers who tend to pay higher premiums. Motorists can pay extra to protect their no-claims discount (NCD). They can then typically make a number of claims within a year without jeopardising their NCD. To protect a five-year no-claims discount, the costs vary from only £5 £to over £35. Levels of protection also vary, so it's essential to read the small print. Most insurers, for example, allow only a limited number of claims. Some insurers also exclude claims if the policyholder is at fault.

Don't pay in instalments

Many insurers offer the option to pay for your car insurance by monthly direct debit, which might be convenient but is not always cheap. You usually have to pay an admin fee, plus interest, if you want to spread the cost of cover over monthly instalments.

Drive fewer miles

As a general rule, the more miles you drive, the more expensive the policy. For example, if you can cut the annual mileage by 5000 miles you could save about £50. Make sure you agree a realistic limit, though, or you could jeopardize any future claims. A lower mileage limit can be particularly useful if you own two cars, as you will probably drive one less than the other.

Use your car for pleasure not business

Insurers bump up the cost of cover if you use your car for business or professional purposes, perhaps if you drive to visit clients, or carry stock or equipment in the boot. Limit the use to so-called social, domestic and pleasure to secure the cheapest deal.

Also, don't be tempted to cover only third party fire and theft to save money. Comprehensive policies are almost always cheaper.

Opt for a higher excess

The excess is the amount the policyholder pays towards each claim. For example, if your policy has an excess of £200 and you make a claim for £500, the insurer will pay only £300. Policies come with a compulsory excess, but if you agree to a higher amount, you can usually negotiate a lower premium.

Keep your car secure

Most cars these days are fitted with alarms and immobilisers as standard. But if you car is older it might be worth installing appropriate security devices - just make sure they are approved by the insurer.

You will pay more if you have to park your vehicle on the street, less if on a driveway or ideally in a locked garage.

Don't modify your car

Pimping your ride will almost certainly push up the price of car cover, even if you make only minor alterations. A new steering wheel, for example, can bump up the cost by 18per cent, according to MoneySuperMarket. Modifications to the gear box can boost the premium by almost half (48per cent) and a turbocharger can almost double the cost, adding 98per cent to the average premium.

If you must make changes, how about adding safety features? Fitting parking sensors can cut the cost of insurance by 11per cent and the addition of a secure tow bar can bring down premiums by 6per cent.

Don't insure everybody

If you insure your car for any driver, you will pay more than if you insure the car for a select number of named drivers. Also, try not to add a young, inexperienced driver to the policy as it will almost certainly push up the premium.