Car Insurance - New Year New Start

With the credit crunch affecting everything from mortgages to credit cards, many consumers will be sitting down and analysing their finances at the start of a new year.

An important aspect of your financial portfolio to consider is your car insurance policy. With car purchases down in 2008 as a result of the credit crunch, many are putting off buying a new car this year because of money worries.

However, there are a few things you can do to help yourself whilst searching for a car insurance quote, you may even save yourself some money in the process:

* Ensure that your vehicle is secure. Parking in a garage or driveway rather than on the street, and fitting some additional security devices – such as alarms, immobilisers and steering locks can help reduce your premium by helping prove to your insurance company that you’ve taken measures to keep the vehicle safe.

* Try to resist the urge to ‘pimp your ride’ though. Any modifications you make to the vehicle – be it cosmetic or mechanical – can push up the cost of your premiums as a result of making the vehicle more attractive to thieves.

* Consider the cost of a policy against your vehicle – if you have an older vehicle it could work out cheaper for you to purchase a third party, fire and theft policy rather than a fully comprehensive cover. This will still offer a level of cover, but can be useful in that it can help reduce your monthly outgoings.

* Also consider upping your excess level – by agreeing to pay just that little bit extra in the event of an accident, you can save yourself some money on the policy itself.

* If you are able to, try to pay the policy up front, monthly payments may be useful for keeping track of your motoring finances, but it could work out cheaper for you to pay the policy off in one instalment.

* If you only travel a short distance every day – consider switching to a pay-as-you-drive policy. The less you drive, the less you pay, which could work out cheaper for you in the long run, plus you can keep up to date with payments in much the same way as a mobile phone bill.

* Build up a no-claims bonus by driving safely and carefully. By accumulating a good period of time without claiming, you can save yourself a chunk of cash on your car insurance.

By driving carefully and taking the time to shop around and compare car insurance quotes, you can help to ensure that your vehicle is protected and save some money in the process.