The cost of insuring your car can be incredibly high at the best of times but there are a number of ways that you can cut the cost of your premiums whilst still retaining the level of cover that you need should anything go wrong. The most useful guide when it comes to lowering the cost of car insurance is common sense and you will also need to be familiar with terms such as excesses and no claims bonuses. Indeed, the cost of motor insurance has risen dramatically for everybody during the last four years alone and this is particularly true for new drivers who have only recently passed their test and are in search of buying their first car.

One of the simplest ways of cutting your car insurance costs is by protecting your no claims bonus. By ensuring your no-claims bonus remains fully intact, you can lower the amount you pay on your next premium by up to three quarters. This can easily be achieved by taking out an additional small policy to protect it. By doing this you will ensure that your no-claims bonus will not be affected should the need to make an insurance claim arise through no fault of your own.

Another way of reducing your car insurance is by taking out another insurance policy with your current provider as a large number of insurance companies will offer you a generous discount as a loyalty incentive. One such car insurance company is Norwich Union. They presently offer their customers a ten percent discount on car insurance policies if they already provide them with home insurance. Adding an older driver to your car insurance policy can also help to reduce your premiums and this is well worthwhile if you have an older relative who makes occasional use of your vehicle. Making sure that your car is always secure is another good way to ensure your premiums remain affordable and if you fit a recognised alarm system such as a Thatcham-approved alarm system to your vehicle you will also save money. This is because insurance providers are always much happier if there is much less risk of theft or vandalism to your car.

One of the terms you will come across when insuring your vehicle or shopping for a new car insurance policy online is the excess rate. This is the amount of money that you will have to pay towards any damage should you make a claim. By increasing the amount of money that you contribute to your claim, you are reducing the amount of money that the insurance company will have to pay out and this is will result in a much cheaper quote. As a general rule of thumb, younger drivers will often be expected to pay higher excess rates than older drivers.

Finally, perhaps one of the most overlooked ways of lowering the cost of car insurance premiums is by paying for your policy in a lump sum, especially as the interest rates attached to monthly instalments is usually quite high, sometimes up to 30%. Although this may seem expensive at first, in the long run you could save yourself an absolute fortune. Of course, the best way to save money on a cheap car insurance quote once you have followed the above guidelines is to compare what's on offer using one of the many available comparison websites.