Buyers' Guide - Car insurance

Car insurance premiums are rising sharply so it's more important than ever to choose your policy carefully. But it's not just a case of picking the cheapest one. Let Moneywise help with our Buyers' Guide.

Car insurance is so expensive it's tempting to cut corners, but there are plenty of ways to save money without cutting your cover.

Compare deals at price comparison sites, but don't blindly plump for the cheapest - you may not get the cover you want. Third-party is often cheaper, but fully-comp provides more peace of mind.

Make sure you check the excess and whether you'll get a courtesy car if yours is off the road.

To save money watch the number of miles you do - some insurers reward low mileage customers with cheaper premiums.

It's also worth paying for your insurance upfront as most charge interest if you pay monthly.

Adding another driver to your policy - female, or older and more experienced can also save you cash.

Young drivers may get cheaper premiums by taking a 'pass plus test' or choosing a company with a special 'pay as you drive' scheme aimed at new motorists.

Some policies let you protect your no-claims discount for a fee, so even if you claim, your no-claims record remains intact.

Even if you've made several claims you should still be able to get cover. Speak to a broker if your history is causing you problems.

Once you're covered be mindful of claiming for small prangs - even if you're not at fault. Insurers don't like claims of any sort and may charge you more next year.

And when your cover is up for renewal shoparound. If you haven't claimed, moved or changed your car your premiums should go down, but the chances are they won't.

Your Comments

I got driving licence a week ago which insurance policy is best to me my age is 41 years

Hi Dan

I assume from your question that you have just passed your driving test if this is the case you will be paying top price for your insurance. I would suggest the first thing you need to do is use the comparison web sites ie or comparethe there are others which I have not mentioned which you could also try. It will also depend on the car you wish to drive as a new car will cost more to insure than an old banger,dont forget to also try Aviva insurance and direct Line as these two companys are not listed on comaprison sites.