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Driving does not come cheap. Running a car involves forking out for car insurance, road tax, fuel, servicing and annual MOT tests. For most drivers, insurance is by far the most expensive cost associated with driving. Car insurance can be particularly expensive for those who live in certain locations or have an expensive profession to insure.

According to statistics, around a third of drivers in the UK pay more than necessary for their car insurance by simply not considering their options. There are a number of ways that you can significantly reduce your car insurance premium, it is all about considering your options when signing up.

Always compare the best deals

Don’t accept any price on your car insurance. When your insurance is due for renewal, don’t simply accept the price that is offered. Always shop around because it is likely that you can get a better deal elsewhere. When heading to comparison websites, always fill your details in carefully to ensure that you get a like for like quotation.

Think about where you keep your car at night

Where you keep your car at night can have a huge impact on the cost of your insurance. It is generally considered that if you keep your car on the road, it is at higher risk. Keeping your car in the garage at night is a simple way to keep your insurance costs down.

Choose higher voluntary excess if it is suitable for your car

Upping your voluntary excess can lower the overall price of your policy. Voluntary excess is the amount that you are willing to pay after an accident before the insurance company cover the rest of the costs. If you select a higher voluntary excess, your insurance cost will be reduced. Always be careful to work this out based upon how much your car is worth. If your car is ready to be scrapped, opting for a voluntary excess of £300 would be completely pointless.

Consider cutting costs with a black box telematics system

One option which many drivers don’t consider is installing a black box telematics system in their car. A black box monitors your driving behaviour, including your speed, braking and how cautious you are on the road. It also monitors the time of day that you drive. All of this information is collated to work out how safe you are as a driver.

The safer your driving is, the lower your insurance will be because you are considered to be lower risk. This system is favoured by young drivers who have incredibly high premiums due to the number of road traffic accidents that occur within their age group. A black box allows insurers to base your premium on your driving ability, not your demographic.

Don’t add young drivers unless you need to

Adding young drivers to your policy can dramatically influence the price of your premium. If you are a parent, don’t make yourself named driver on your child’s car as you will get caught out.

Olivia Lazenby is a renowned author of all things insurance and finance related. When getting the latest information on motor loans, Olivia visits