You could be paying hundreds of pounds over the odds for car cover. Robert Winnett highlights the best ways to cut costs 

Ten tips for cutting the cost of car insurance 

MOTORISTS are facing a rise in car insurance premiums of up to 25% this year. When you come to renew your cover, you are likely to find your policy is between £40 and £50 more expensive. 

But the cost of your insurance is dependent on hundreds, or sometimes even thousands of factors. Your age, where you live and what car you drive are obviously the major variables - but there are a range of other more obscure causes of high insurance premiums. 

Peter Wright from Berry, Birch & Noble, an insurance broker, says: "There are several steps that you can take to knock quite large chunks off your annual car-insurance bill. Many drivers are paying hundreds of pounds a year over the odds." 

These are the experts' top 10 tips for slashing the cost of your cover: 

1 Shop around for the best value cover 

A recent survey carried out by insurer Swiss Re found that almost 70% of drivers can get a better deal - by half, in some cases - by switching insurers. Yet only two out of 10 people automatically look for cheaper cover when they renew their policies each year. 

Families living in "low-risk areas" are usually best calling direct telephone-based insurers - such as Direct Line (0181-686 2468) and Axa Direct (0800 747576). 

Younger drivers, or those with convictions, high-performance cars or other specialist needs should try a local broker. The British Insurance Brokers Association (0171-623 9043) will put you in touch. Older drivers aged over 50 are offered specialist and often cheaper cover by firms such as Berry, Birch & Noble (0800 854074) and RIAS (0800 502100). 

Internet sites will offer quotes from several insurers and find the cheapest deal available. Sites worth checking out include www.screentrade.com and www.ironsure.com 

2 Make sure your car is totally secure 

Fitting your car with a range of security devices may cost several hundred pounds, but this is often recouped very quickly through lower premiums. 

Immobilisers - which help prevent thieves hot-wiring your car - come as standard on new cars, but it is usually worth fitting them on older vehicles. Jack Straw, the home secretary, is considering making it compulsory for older cars built between 1991 and 1994 to be fitted with one. 

An immobiliser costs between £75 and £100 and Norwich Union estimates that it can cut the cost of insurance by about £56 a year for an average family driving a Ford Sierra. You could also get a car alarm, or satellite tracking device that can trace your car if it is stolen. 
3 Keep your car in a garage at night 

Insurers will typically offer you a discount of up to 20% if you park in a garage overnight. Over 10 years you could save almost £1,000 in insurance premiums. 

4 Increase the amount of your excess 

Most policies insist that you pay the first £100 of any claim. But you can ask to increase the so-called "excess" and qualify for a discount. For example, by increasing the excess to £250 you could save up to 10%. 

However, if you do need to make a claim, the savings could be wiped out, as you will have to pay the bigger excess. 

5 Restrict the number of people who drive your car 

The cheapest policy is usually for husbands and wives because they are statistically less likely to claim. Insuring children can be prohibitively expensive, particularly on large family cars. 

Therefore, if your son or daughter is at university, it may be cheaper to add them as temporary drivers for weeks of the year when they come home. 

6 Cut the number of miles you drive each year 

The fewer miles you drive, the less likely you are to have an accident - and your insurance premium will reflect this. For example, if you drive less than 3,000 miles a year, your insurance can be about 10% less. 

7 Buy older cars or British vehicles 

Older cars are worth less, so cost less to insure. For example, a new BMW 3 series costs more than £600 a year for a typical middle-aged couple from Kent, but a three-year-old model costs £579. 

British-manufactured cars tend to have lower ratings because parts are cheaper. 

8 Don't modify or customise the car 

Adding body kits or alloy wheels may improve your car's looks, but they are likely to increase your premium because the car will become more attractive to thieves. 

9 Don't make claims for minor damage 

When you make a claim, you have to work out whether it is worth losing any no claims bonus discount. Insurers reward drivers who do not make any claims by knocking up to 70% off the premium. 

10 Check the details of your insurance policy 

 Make sure you are not paying for unnecessary add-ons. For example, do you really need cover for driving abroad, or for your stereo? 

Oddly, comprehensive cover is often cheaper than third-party cover - which does not pay out for damage caused to your vehicle in an accident. This is because insurance records show that those driving with third-party cover are riskier drivers. 

Sunday Times 3 October 99