Searching for cheaper car insurance can be a daunting prospect. Premiums can vary widely depending on the insurance provider and it is often hard to tell if you are getting the best deal. There are steps you can take though in order to reduce your premium.

Firstly, shop around. Car insurance companies have their own individual criteria, and will use different methods to calculate your premium by adding or subtracting money after each question asked. Get as many quotes as possible and remember to compare quotes on a like-for-like basis. An expensive premium may turn out to be cheaper when all the extras are taken into account. For example, one insurance policy could include breakdown cover as standard, while with another you may have to buy it separately. Consider using a broker if you can't spare the time to search for the best quote. You could also save time by using an online comparison site as this will allow you to automatically compare car insurance quotes from several providers. It should also be remembered that insurance providers will often raise prices after the first year. Search around for quotes each year before you renew. Car insurance quotes are always changing and you may find a better deal elsewhere.

If you buy online you could save as much as 10% on your premium; because the process is automated, it costs the provider a lot less to process your application and so these savings can be past on to you the customer. You can then print out your policy there and then.

Consider the kind of policy you want. Some providers offer cheaper basic policies without add-ons such as a courtesy car, or breakdown cover. If your car is not worth very much it may make more sense to purchase third party insurance which is the minimum cover required by law. There is little point having fully comprehensive cover if the cost of repairing your car after an accident exceeds its value. When arranging your policy, think about paying your annual premium in one go. This will save you money as many insurers charge interest for spreading out the payments. Some car insurance companies charge as much as 15% APR on instalments. You can also opt to increase your voluntary excess. This is the amount you are required to pay towards a claim and by increasing it, your car insurance company should reduce your premium.

Adding your spouse to your policy can sometimes get you a discount on your premium. Insurance companies often view marriage as a sign of stability and therefore see married couples as safer drivers. If you are a younger driver, it may be worth adding an older, more experienced driver to your policy as this too can reduce your premium.

You should also try to build up and protect your no-claims discount. This is probably the best way of reducing the cost of car insurance. The more years of no-claims you accumulate, the safer a driver your insurance company will perceive you to be. This in turn can lead to a discount on your premium of up to 75%. In order to maintain your no-claims discount, it is a good idea to avoid claiming on minor damage as even this can push up your premium.

Your car insurance premium will considerably increase if you have driving convictions. Maintaining a clean licence sends the message to insurers that you are a safe driver and keeps your premiums down. Taking and passing the advanced driving test will also demonstrate to your insurer that you are a highly skilled driver and less likely to be involved in an accident.

Try to reduce your annual mileage. Insurers factor in mileage when calculating your premium and if you can lower yours; you are likely to reduce your premium.

Think about buying a cheaper car with a smaller engine. The make of a car, its engine size, age and value are all used when calculating insurance quotes. Most car insurance companies use the Association of British Insurance Group Rating which rates vehicles from 1 to 20. If your car falls into a higher group, it is likely your premium will be higher also. If you buy a car with a lower group rating, there is a good chance your premium will be lower. You should also avoid modifying or customising your car as this too can result in higher insurance premiums.

Increase your cars security. Install an alarm or immobiliser in your car and park it in a garage or other off-road location such as a driveway. This will deter thieves and can lower the cost of car insurance.

Finally, be honest. Lying to your insurer about such things as the type of car you have, its mileage, or who is driving it will invalidate your insurance.