Many people will tell you that there are just a few set tips and tricks to use to make sure you get inexpensive car insurance, most of the tips work and I will go over them one by one later in the hub, but the first thing that I will say is that the key to getting the best deal on car insurance is by shopping around and not being afraid of trying out new comers to the market.

Shopping around for the best deal.

I can remember when I worked in the insurance industry the company had a once a year roadshow where basically the CEO of the company would drive around the major centres of the country and present an annual report which would generally outline all the great results we had for the year. One year when the CEO was displaying a graph which showed the average insurance premium per car insurance policy he was saying “as you can see we have managed to maintain healthy profits whilst retaining the lowest cost per policy.... apart from this new competitor who’s average policy costs 25% less than ours” this was a bit of a shock for everyone there as there shouldn’t have been any way that a company could have such low premiums and still maintain profit.

This new competitor as it turns out was a good example of a strategy some insurance firms use when they are trying to break into a new market. Basically they will offer low premiums for a set period knowing that they will make a loss in order to pick up public profile, once their market share increases they will increase their premiums and eventually make profit. Investigating companies like this is a great way of saving a bundle when it comes to car insurance, generally when you notice an insurance company that you’ve never heard of that is advertising a lot, this is a pretty good sign that they are new to the market, and probably will to offer loss leading rates.

Apart from seeking out the new fish in the insurance market the other advice for getting the most inexpensive car insurance is pretty standard and can basically be summed up in a few lines:

• Increase your deductible to the highest level that you are comfortable with – the higher that you raise your deductible the lower your premiums will be.
• Pay your annual premium up front – this will generally save you about 10% off the annual premium, and if you can afford to do it 10% is a lot more than you are going to make on that money in the bank.
• Insure all your assets with the same company – if you have a house and contents as well as a car make sure that you insure all three at the same place as this will end up saving you up to 25%

So there you have it, a few discounts that you should be able to pick up from any insurance firm, and one that you can only pick up by keeping your eyes open and searching out the new comer to the market. If you combine all of these tips you should be able to save a fair whack on your insurance bill.