Once you are aware of the criteria or factors used by insurance companies to calculate your car insurance, you can use that knowledge to cut the cost of your policy.

The following are key tips to help you keep your insurance premium as low as possible:

1.    Compare rates

When buying insurance, it is important to look around for the best deal for you.

Try to avoid rushing the process to leave you with enough time to do this. You can contact various companies and enquire about their packages or – one of the easiest ways to compare prices – use a comparison website such as GoCompare or Comparethemarket.

Remember that you can buy the insurance directly from the insurer even after using a comparison website. This can sometimes help to keep your cost down.

2.    No claims bonus

Avoid making claims on your insurance unless absolutely necessary. Of course if you are in a major accident this is not an option however, if your car has sustained a mere scratch, it may save you money on your insurance premium to deal with this yourself.

3.    Increase your excess

The less the insurance company has to fork out in the event you make a claim, the lower your premium will be so try and take on some excess. This can be recovered in the event you are not at fault in an accident.

*On the other hand, be careful and ensure that you balance this out in relation to your car’s value.

4.    Drive carefully and get the ‘Black Box’

Keeping as clean a driving record as possible will help to lower your premium so it is important to drive carefully in order to avoid accidents or moving violations that can lead to licence suspension or revocation.

You can also take the initiative to buy a ‘Black Box’, which is basically installed on your dashboard to monitor how you drive. If you are a careful driver, then you can prove this to your insurance company and bring down your premium.

5.    Consider security

You will have to tell your insurance company where you keep your car. If you have a garage, use it, as this will keep your premium down with your car being kept or parked in a safe place.

Avoid parking by the side of the road as this will also drive up the cost of your insurance.

6.    Mileage

Try to use your car as little as possible. You can carpool to work or use your car specifically on weekends. Either way you have to disclose this information to your insurance provider, but the less you use your car, the lower the annual mileage, the lower the cost of your insurance.

7.    Avoid naming several drivers on our policy

The more drivers you list on your policy, the higher the premium. Only name the regular driver(s). You can easily add others later and needn’t do it when purchasing your insurance policy.

8.    Disclosing your occupation

Be sure to tell your insurance company your occupation. You can lower your premium depending on your profession so be aware of where you fall on the spectrum.

9.    Car value and age

If you are considering buying a car, it is not always best to buy one brand new. A second hand car that may be considered of lower value but is in good condition will also cost you less in insurance premiums.

10. Car modifications

Avoid making unnecessary modifications to your car if possible. The more you modify your car, the more you will have to pay in insurance.