Your Money: How to drive down your insurance costs

THE average car insurance premium has surged by £90 over the last year to reach £666, according to research from Consumer Intelligence.

So how can you cut the cost?

Study renewal documents

New rules introduced in April require insurers to clearly show the premium a customer paid the previous year alongside their proposed renewal premium – so you can spot the difference more clearly. The changes were made to help people shop around – so make the most of this information.

Consider a ‘black box’ insurance policy

This could particularly help younger drivers, who may be frustrated at having to pay more for their insurance due to higher accident rates among their age group.

But if you can prove to your insurer that you are a careful driver, you may be able to get the cost of your policy down. Telematics or “black box” policies involve a device being installed in your car which monitors your driving.

This enables insurers to reward good driving with cheaper policies, rather than you having to pay for a deal based on average driving abilities for your age group.

Compare deals

Make the most of comparison websites. Remember it’s important to find the deal that’s most suitable for your needs, not just the cheapest.

Negotiate with your existing insurer

If you’ve found good deals elsewhere, try speaking to your current insurer to see if it can improve on its quote.