As the cost of living generally and motoring costs in particular continue to rise, people are looking for ways to reduce the cost of car insurance that can be huge especially for younger drivers.

Shopping around for the best deal is essential if you are going to get value for money. Insurers rarely give long term customers the cheapest deal so it is important not to let the policy auto renew but rather to search for a better price even if you approach your existing insurer to see whether they can match any new quote.

Paying your policy premiums annually rather than in instalments can save money as some insurers charge an APR of 25% for paying monthly. It may be worth putting the insurance premium cost on a 0% credit card as this would be a cheaper alternative if you cannot afford to pay it all in one go.

If you drive lower than the average mileage in your vehicle it could be that you can save money by taking out pay by mile insurance which charges you based on the amount of mileage you actually do.

Finally beware of add-ons that can bump up the cost of your insurance premium. These can include things like breakdown cover and hire cars which you may not need.