Just passing your driving test and buying your new car, you are likely to be bemused by the range of car insurance quotes out there. One thing that will downright shock-or annoy-you, is that car insurance is so very high these days. The cost of premiums and interest charges are small fortune. The reason why is a combination of factors.

The first is the lack of research done by drivers when buying their policy. Many drivers who believe that they are opting for a cheaper car insurance policy may actually be paying more for less coverage.

For instance, insurancewide.com believes that drivers over the age of 35 who take out third person, fire and theft (TPFT) policies could be paying more than if they took out more complete coverage offered by a fully comprehensive policy.Both young drivers, who are more likely to claim, and motorists with high performance cars but low cash flow tend to take out TPFT, thereby raising the cost of premiums for this type of deal.

Premiums are higher than they might otherwise be because of the high incidence of uninsured drivers who are most prone to having accidents. This is paid for by law-abiding motorists. The Association of British Insurers says that uninsured drivers are ten times more likely to have convictions for drink-driving and are six times more likely to be behind the wheel of an unroadworthy vehicle. About one in 20 cars is being driven without insurance. The ABI says claims from accidents involving these motorists cost more than £500 million a year, and the cost of uninsured driving adds an extra £25 to £30 to the average annual premium.

The compensation culture is another reason that is blamed for the high prices with more people claiming compensation than ever, raising premiums in the process. The Association of British Insurers estimates that for every £1 insurers collect in premiums, they have to pay out £1.15. People are more inclined to sue these days after an accident and so file a personal injury claim, the compensation that is duly awarded must be made up somehow, and this is where higher premiums come into the picture.

If you want to keep car insurance premiums to a minimum the first rule is to shop around on the internet using the price comparison websites. There are hundreds to choose from but they don’t all cover all the policies in the market or all the insurers so get quotes from several. The difference between the best quote and the worst quote can be several hundred pounds. You should do this every year when your policy comes up for renewal as premiums can change dramatically. However, make sure the cover is sufficient and that you understand all the restrictions and limitations.

You can also keep your premiums down by restricting the cover to named drivers only if possible, if at all possible including those over the age of 25 with no motoring convictions. You should also restrict the mileage – if you do under 10,000 miles a year premiums come down considerably.