Gocompare.com: Car insurance premiums

Commenting on the AA’s rate index, Hayley Parsons, managing, director at Gocompare.com, said: "The increase in premiums for comprehensive motor insurance emphasises the importance of shopping around for insurance, but drivers should be mindful not to compromise on cover for the sake of price.

If rates go up, it doesn’t necessarily mean you can’t still get a good deal on your insurance. The market is very fragmented with cover levels and the benefits on offer varying greatly between companies. Some firms are stripping down policies to compete on price and others are adding additional benefits such as reduced excess levels, personal accident cover or legal assistance for little, or in some cases, no extra cost. Consumers are advised to shop around for the best price but then compare the cover levels carefully to find the best value.“

Gocompare.com provides the following tips to help reduce the cost of your motor insurance premiums:

Keep it clean - The more convictions on your licence, the higher the premium. Speeding is one of the more common convictions which will leave you paying a fine and more than likely higher insurance costs.

Pass Plus to drive down cost – If you are a learner driver, you can help reduce your premiums by taking a course which shows you are a proficient driver. This is a Pass Plus scheme for which some insurance companies may cut premiums by as much as 30%. There is also an Advanced Driver course which can reduce your premiums.

Don’t pimp your premiums – Modifying your car so that it looks like it should be in a James Bond film is all well and good but any differences from the factory standard will increase your premium.

Park safely - The safer the place you leave your car the lower the risk. If you leave your car on the street overnight then an insurance company will say that this is a greater risk than a car kept securely overnight in a locked garage.

Watch out for additional monthly fees - Something some insurers don't make so clear is that although they offer a good service by allowing you to pay monthly instead of one lump sum, they may well introduce a fee for doing this. This would make the total amount you pay higher than the original quoted premium.

Secure your car for a better deal - A vehicle with a car alarm, immobiliser or tracker will potentially lower the quote that an insurer will offer you.