Nine golden rules to help keep the lid on the spiralling cost of motor insurance

1 NEVER automatically renew car insurance. Website Gocompare says more than five million motorists allow their insurance to renew automatically every year, often paying over the odds as a result.

It also reveals that more than 40 per cent of 18 to 24-year-olds say they renew out of loyalty to their insurer – but there are no rewards for loyalty when it comes to insurance.

Shop around by using a price comparison website such as Gocompare, Moneysupermarket, comparethemarket and Confused.

It is well worthwhile as annual savings of as much as £250 are possible.

2 RENEWING early can also prove a smart move. With some insurers, you can buy cover 30 days ahead of the renewal date, and this can save around £100 compared with buying the day before.

This is because some insurers view organised people as more risk averse, and therefore less likely to take a chance behind the wheel – or miss a premium.

3 WHILE paying for your insurance in monthly instalments

can help you spread the cost, it often works out more expensive than paying in one go upfront, as insurers treat your premiums as a highinterest loan.

4 OPTING for a higher voluntary excess can reduce your premiums. But in accepting a big excess, make sure you can afford this cost if you need to make a claim.

5 FITTING a car alarm or immobiliser can bring down the cost of your insurance.

Also, if possible, try to park your car in a garage or driveway rather than leaving it on the road. Insurers look kindly on this.

6 BY ADDING a safer driver – such as a parent – to your policy, it can reduce your insurance premiums significantly.

But take care not to fall into the ‘fronting’ trap. This is where a more experienced driver claims to be the main driver of a younger motorist’s vehicle to obtain cheaper insurance. This is illegal and fraudulent.

7 TRY tweaking your job title because job descriptions are important and determine how risky an insurer will view you.

According to MoneySavingExpert, an illustrator will often get cheaper car insurance than an artist.

The same goes for an editor rather than a journalist and a PA rather than a secretary.

8 DO NOT assume that third-party cover is the cheapest option – this is not always the case. Comprehensive cover can sometimes prove a smarter purchase.

9 BY GETTING a ‘black box’ fitted to your vehicle, your insurer can monitor your driving behaviour, and reward good, safe motoring with lower premiums. Try providers such as Smartdriverclub, Marmalade, Insurethebox, Co-op Insurance Smartbox and Admiral LittleBox.

Smartdriverclub offers insurance costing up to 42 per cent less than a traditional policy for good drivers.

Additional services include a crash alert (to the insurer), warnings of emerging mechanical problems, fuel monitoring and theft tracking.