Contract hire: Ways to save money on car insurance

Car insurance can be very expensive, so we’ve compiled some tips to help you save money

Contract hire is a very cost-effective way of using a vehicle, without actually owning it. Along with a low initial outlay, you pay a low fixed-monthly rental, so you can always keep track of your finances. Fuel and insurance are not included in the monthly rental, but if you choose to include a service and maintenance package in your plan, these are the only extra costs you have to bear. Have a look at our suggestions below on ways to save money on your car insurance http://www.direct.gov.uk/en/motoring/owningavehicle/motorinsurance/dg_067630.

• There are now hundreds of car insurance companies all vying for your business, so the competition is hot and you can take advantage of some good bargains. If you shop around you will almost certainly be able to beat the renewal quote offered by your current insurer

• Keep your car in the garage overnight. You will pay more in insurance for keeping your car on the road, because there is more chance of your car being broken into or damaged. As a second best option, put your car on a driveway

• Go through a car insurance broker's website so you can get access to quotes from at least 40 car insurers, by simply inputting your details once. When you've received a quotation, call them to discuss the details of the policy, and maybe even request a further discount

• Keep track of how many miles you do each year, if you travel less then you will save on premiums

• If you're aged between 18 and 21 then you have got the option of “pay-as-you-go insurance”. This is a new type of insurance pioneered by one particular insurance company. It's especially for younger people who find it hard to afford car insurance. You're charged for the miles you drive, and it gets more expensive per mile between 11pm and 6am. For a one-off fee of £199, your car is fitted with a Global Positioning System which communicates details of your mileage direct to Norwich Union, they then send you a monthly bill

• If you've got more than one car registered at your address, you can get extra savings by insuring them all in one policy

• High spec and performance cars cost more to insure, because statistically speaking, there's more chance of them being stolen or being involved in an accident. Save money by choosing something a bit more practical