How to cut the cost of your car insurance

The obvious way to cut your car insurance costs is to shop around at least every two years, preferably annually.

But it is also often the case that people pay for the level of cover they receive. The more bolt-on “goodies” you have, the higher the cost of your motor insurance.

So decide which of these you want and which you don’t need:

Is a courtesy car provided as standard? Is it offered if your car is stolen or written-off? Do you have to pay extra to insure the courtesy car?

Is legal protection included? This type of protection applies in cases where, for example, you have a traffic accident involving your car that is not your fault. The policy offers the chance to be able to claim back your uninsured losses from the driver responsible. Generally, you will be offered cover up to £50,000 or £100,000 of legal fees. But bear in mind that the final decision as to whether the legal support is granted depends on the “winnability” of any court action being considered.

Does the policy offer roadside breakdown assistance? Is Europe covered? If so, this can cost a lot more.

Do you pay extra for overseas cover? Most car insurance polices do so as standard nowadays, but a few insurers make you pay extra.

How high is the policy excess? Are there any mandatory excesses for accidental or malicious damage? Many companies issue policies that have a “compulsory excess” - and sometimes a “voluntary excess”. This refers to the amount of money you are willing to pay in the event of an accident. The more money you`re willing to pay in excess, the lower your motor insurance premium.

Does cover include personal injury, personal belongings or replacement locks?

Does it offer legal advice and medical counselling telephone lines?

Will your insurer immediately authorise repairs from recommended agents? If you have to obtain quotes, the cost may be less.

Will your no-claims bonus be affected if the accident wasn`t your fault or the cost cannot be recovered?

Can you transfer a no-claims bonus built up while driving on somebody else`s insurance? For one or two insurers this is standard. They may also offer you a no-claims bonus if you are the named driver on someone else’s car insurance policy.

Can you transfer your no-claims bonus on to a second car?

Can you protect your no-claims bonus? How many claims are you allowed under the scheme before your no-claims bonus is affected?

Will you be charged extra for paying your car insurance by monthly direct debit?