Get control of your running costs

Insurance premiums rose by an average of 10% as UK insurers suffered huge losses in 2010. Most firms have chosen to claw back costs from new policies and renewals, hitting motorists hard as they already suffer the reality of spiralling fuel prices.

Younger drivers are by far the worst hit. Reports have shown that insurance premiums for young “high risk” drivers have risen by more than 58% for fully comprehensive policies and over 70% for third party fire and theft cover. These prices have proved to be unaffordable for many young motorists who are choosing to either give up their cars or drive illegally without any insurance.

Drivers experiencing difficulty are advised to follow a few simple steps in order to ensure they are getting the best deals.

Reduce annual millage allowance

The less miles you travel in a year, the less likely you are to have an accident. Just remember to ensure you notify your insurer if you are likely to exceed your allowance as this may hinder your insurance void.

Compare car insurance

Motorists who compare car insurance premiums can often make savings over those who simply stay with one insurance provider. A huge range of comparison websites allow you to get the best deal from hundreds of difference companies.

Choose a car with a lower insurance group

Sport and luxury model car are seen as more of a risk by insurers. They often consume much more fuel and are statistically more prone to vandalism and theft.

Prices are not predicted to drop anytime soon, many insurance providers do not expect to “break even” until 2012 at the earliest.