Motor insurance can be expensive and reducing it often means getting down to the specifics of insurance jargon-terms like no claims bonus and excesses. It also comes down to common sense and cutting premiums is not a herculean task but a matter of using some foresight and logic. Four years ago the RAC warned that car insurance costs would soar and indeed they have. Four years later they remain at a peak and cutting premiums is an absolute necessity, especially for those who have just passed their driving test and are looking to buy a new car.

Protecting your no claims bonus is one of the main ways to address the spiralling costs. A full no-claims bonus can reduce your insurance premium by almost 75%. All it takes is a small additional premium to protect this bonus and by doing so will reduce your premium. Those that have not done so have often realised that are after making a claim, their premiums increase by a large amount, in part because they have lost their no-claims bonus.

Sometimes grouping together insurance deals can cut your premiums and lead to discounts. For example, Norwich Union Direct will discount your car insurance by 10% if you have a home insurance policy with them. So if you are already with an insurance provider, taking out another policy with them will be rewarded by way of a discount.

If you have just bought a new car, you can reduce your premium by 10% if you add an older driver to your policy. In the typical scenario, you can add your parents to it if they will occasionally drive your car.You can also pay a higher excess. Many insurers will insist on a minimum amount that you have to contribute to any claim which is called an excess payment. Usually, insurers ask mature drivers to contribute between £50 to £100 towards the cost of a claim while younger drivers are expected to pay more. By offering to pay a higher excess, you can cut your premium substantially.

Security is of course a prerequisite and impresses all car insurance providers. All insurers recognise Thatcham-approved alarms and will cut your premium. If you have a garage it should be used as your car is less likely to be stolen from your garage or from your drive than if it is parked in the street. This is an example of common sense, but drivers often are lazy and leave their cars out on the street outside their homes leaving themselves vulnerable to theft and vandalism. Taking advanced driving courses are shown to cut insurance quotes by over a third, the government recommended Pass Plus course can reduce your premium as you will be classed as better qualified driver.

Finally, although most people prefer to pay their insurance in monthly statements to suit their financial needs, this does have the disadvantage of perhaps paying a deposit and more important being charged high rates of interest-anywhere between 15%-30% and can end up costing you far more in the long run by taking the monthly instalments route. By paying it all in a lump sum, you are saving a great deal.