Although car insurance premiums have been steadily rising in the UK, there are some tried and tested steps you can take to ensure a competitive quote at renewal time.

Know What Cover You Need

The first and most important step is to know exactly what type of motor insurance you need together with any added extras and excess levels. Everyone has different driving habits, history and needs so only you can judge what options and cover levels are right for you. Many drivers never look at their car insurance policies until they need to claim, so break the habit of a lifetime and dig out your current and any previous policy documents to see exactly what you have paid for in the past. The question you should be asking is do you need all of the options and bolt-on protection that some comprehensive policies provide? Maybe you'll be surprised at the lack of protection you have out on the road and want to extend your cover. Whatever you decide is or isn't needed, write it down.

Shop Around for Maximum Savings

Armed with a firm idea of what you are looking for you can shop around with confidence and compare like with like more easily. The fastest and easiest way to do this is online using quotation or price comparison websites. Alternatively, if you don't feel confident buying cover online or if you need advice, use an insurance broker who has access to the whole market and can do the leg work for you. If you're happy buying car insurance online it's important to remember to stick to the same type and levels of insurance so that you can get fair comparison quotes.

Maximise Your Discount

Whether you use a price comparison site or quote engine, narrow your selection down to two or three companies and approach them directly to confirm the premiums and cover are correct. Contact your shortlist and ask about any new customer premium discounts and do your best to haggle the price down. Also remember to consider quotes from insurers you already have other types of cover with such as home or breakdown insurance. Many online providers now offer discounts for existing customers anywhere from 5% to 20%. This can also apply if you are a member of any associations, specialist groups or work unions.

Reduce the Risk of a Claim

One of the most effective ways to consistently reduce your motor insurance costs is to reduce the risk of a claim. As the two most common reasons for motor claims are accidents and theft, you can reduce the risk by improving your driving abilities through advanced driver training and ensuring your vehicle is secure and parked in a safe location at night. Another tip is to give more thought to your annual mileage when applying for a policy rather than guessing and declaring more miles than you actually drive just to be sure. Remember, statistically, the less miles you do the less risk there is of a claim.

By following these few simple steps, you can save yourself a lot of money and combat the rising cost of car insurance premiums.

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