Car insurance is a necessary evil. To drive legally on British roads, you need to have an appropriate insurance cover for your vehicle. However, ask anyone familiar with obtaining car insurance, and they will likely bemoan the process of scouting around looking for different companies for the best price.

While there are many misconceptions around what criteria affect your premiums, there is some truth in that the calculations are based on many different factors—almost too many to comprehend when making your inquiries for a decent quote.

With car insurance prices on the rise, your quote can be volatile, to say the least. Reports suggest that the ideal time to gain a new quote is three weeks before your existing policy runs out. But we warned the closer you leave it to your renewal date, the more the prices increase. The more inquiries you make, the greater the likelihood of increased costs.

What can you do to reduce your car insurance policy when renewal time rolls around?

Limit Mileage

Limiting the number of miles you drive each year dramatically reduces your risk to insurers, making you an easier-to-insure risk. Giving an inaccurate estimate of your mileage may invalidate your insurance policy.

Avoid Peak Times

Not driving during hours can help you keep your insurance down. Not all quotes take this into account, but black boxes being fitted to cars these days can track your driving habits to help you lower your premiums. It monitors when you drive, and avoiding late-night driving, or peak-time traffic can boost chances of lowering your rates.

Pay Annually

When you choose to pay via monthly instalments, chances are you are being charged an APR as the company is funding the finance for your premium, making it effectively like a loan. Paying outright can help you save a few extra pounds each year.

Build Up Your No Claims

While this is impossible for new drivers, you have plenty of motivation to avoid any accidents on the roads. Your driving plays a big part in helping you to reduce the risk of crashes. You cannot control other people driving, just your own. The more careful a driver you are, the lower the risk, plus the better your reactions. If you are in an accident, whether it is your fault or not, you need to inform your insurance company immediately and contact adviceline injury lawyers if you have sustained injuries.

The more no claims bonus you accumulate, the lower your premiums. Once you get over four years, typically, many insurers offer to protect your no claims for an added fee on your quote.

Check Your Add Ons

Take the time to do thorough research on various insurance policies, so you don't overpay for something you don't need. Go for one that offers everything you need at a fantastic price. To find the right cover, it helps to compare insurance.

Look at the optional extras; what are you paying extra for, or can you include add-ons such as legal assistance, breakdown cover, windscreen repairs, courtesy car and more. Some insurers include these options as standard. Others don't. Always check what is included.

Increase Your Voluntary Excess

All insurance premiums have the option for a voluntary excess amount along with a mandatory excess. You can alter the voluntary excess to an amount you can realistically afford. The more you are willing to pay, the less the insurance company will pay and the lower your premiums.

Correct Occupation

Different occupations come with additional penalties as far as car insurance is concerned. Make sure you get it as accurate or as close to accurate as possible. If you are commuting, then make sure to enter this as if you have an accident on your way to work and you only ticked the social and domestic option on your quote, you will not be covered.

Level of Cover

If your car is less valuable, a third party fire and theft policy may help you save money over comprehensive insurance.

However, if your only source of insurance is a third-party provider, you might not be able to get the cover you need, and it might not be cheaper than a comprehensive policy.

Choose a Smaller Car

Small engine cars tend to be in the "cheap insurance" category, which causes them to have lower premiums. For example, a hatchback with a volume of one litre is more economical than an SUV with a massive engine. However, no vehicle type is treated in the same way by all insurers.