IAM: Drivers have some control over car insurance costs

As car insurance premiums rise, it is worth noting that drivers can do their bit to cut the cost of cover.

This is according to Neil Greig, director of policy and research at the Institute of Advanced Motorists (IAM), who suggested that people should have the cost of insurance in mind from the moment they buy a car.

Selecting a model which is in a lower insurance bracket will help, he said, which may including choosing a vehicle with low emissions and other eco-credentials.

"Most new cars will display this in documentation before you buy," he pointed out.

Some insurers are now offering incentives for people who buy eco-friendly cars, by offering carbon offsetting and donations to environmental charities.

Buying a green car insurance policy can also lead some companies to carry out carbon offsetting.

Other ways of lowering policy prices include going on advanced training courses, Mr Greig identified.

The IAM offers education to already-qualified drivers, as does the Pass Plus initiative, which is primarily aimed at new motorists.

Courses take at least six hours to complete and, once finished, entitle the driver to a certificate which will help them to obtain cheaper car insurance.

Perhaps one of the easiest ways of reducing insurance premiums is by storing a car in a garage, rather than on a driveway or, worse still, on the street, Mr Greig said.

He continued: "Let the company know you have one. With the more expensive [car] models make sure they are fitted with a Thatcham alarm - the research body that sets the standard for car alarms."

Making a vehicle more difficult for thieves to steal will prove beneficial, he said, as insurers look favourably on those who aim to prevent theft from the outset.

"Unfortunately, most of the cost still comes down to your gender, age, type of car and where you live that are the biggest determinants - little of which we can do much about," Mr Greig commented.

Whatever the cost of cover, it is important for people to make sure they have it in place, he stressed, as failing to take out insurance is illegal.

The expert commented: "There are at least a million uninsured drivers, with the police seizing more all the time.

"Their powers have increased and they have new number plate recognition technology."

Furthermore, tax, MOT, registration and insurance databases all now work in conjunction with one another, which makes it more difficult for consumers to evade the authorities.

Mr Grieg noted that car insurance premiums are on the rise due to a number of factors.

"The cost of claims is rising all the time due to these no-win no-fee claims. People now also claim for things they didn't use to," he identified.

It is possible that more car insurance claims have been made during the recession, which in turn has pushed up the cost of cover, the expert claimed.

His comments are supported by recent findings from Consumer Intelligence, which showed that the average premium is now £564.69, marking a 19.6 per cent increase from January 2009.

By shopping around for cover, premiums can be reduced by up to 35 per cent, the research shows.

Over half (55 per cent) of those people who switched in the last year were able to save more than £50, it discovered.