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The British Insurance Brokers Association (BIBA) also suggests that drivers can save money on their premiums by considering:

• Lower car group

  The biggest saving for drivers can be made if the vehicle is in a lower car group, eg a Fiat Seicento or Ford Fiesta. Groups range from 1 to 50, 1 being the cheapest.

• Passing the pass plus test

  This entails learning to drive at night-time and on motor ways. Although there is a cost involved to complete the pass plus test, which can be over £100, there is potential for a 30% saving which can result in around a £400 saving on a premium for a young driver, so it is definitely worth considering.

• Earning no claims bonuses

  No claims bonuses can be an advantage, particularly for young drivers. By earning the first year's no claims bonus a young driver can get a 30% reduction in their next premium. This increases each year resulting in a 40% reduction if two years no claims bonus is earnt, 50% for three years and 60% for four years.

• Limiting mileage

  Limiting mileage can also be a benefit for reducing a premium. The fewer miles you travel, the cheaper the premium.

• Use an insurance broker

  Insurance brokers deal with many different insurers selling a wide variety of products, unlike direct insurers who only sell their own product. Brokers can match the driver with an insurer who is best suited to their needs to achieve the most competitive terms. A BIBA broker can be found on 0870 950 1790 or online

• Cover

  Opting for third party, fire and theft cover can also save up to 40% on a young driver’s premium so it may also be worth looking at that type of policy, rather than a fully comprehensive policy, for an older vehicle. However, be aware that while comprehensive cover will repair your car after a collision, third party, fire and theft policies are precisely that - covering only for fire or theft incidents.

• Security

  Your insurance broker can advise you on particular alarms or immobilisers which qualify for a discount from your premium.

• Excess

  Comprehensive cover with a large excess will reduce your premium but make sure you can afford the excess as this is the first part of a claim that you must pay for.

• Check your details

  Premiums are calculated on factors such as your age, address, profession and the size of your car's engine. It is important that all of these details are correct as any one of these affects the cost of your policy. Always check a new policy or, if any of your circumstances change, update the details. If you move house and are involved in an accident without having updated your details, your insurer could refuse to cover your claim.

• Pimping your ride

  Let your insurance company know about any modifications made to your vehicle. Statistically, modified vehicles are more likely to be involved in an accident than a standard model and this increased risk will be reflected in the price of the premium. You could be left to foot the bill for all parties involved in an accident if you don't let your insurer know about changes to your vehicle.

• Breaking the law

  If you are convicted of a driving offence, you must let your insurance company know immediately otherwise it could invalidate your policy under the grounds of fraud. It means a slightly higher premium to pay but it will mean you are covered should the worst happen.

• Spent convictions

  Don't waste money by declaring motoring convictions that are 'spent' after a certain period of time. Under the Rehabilitation of Offenders Act 1974, you do not have to disclose your conviction to the insurer once the relevant period of time has passed e.g. speeding penalties 'expire' after four years.