Young men are a higher risk than women

- A-Z of insurers

Motor insurance is a legal necessity - and a costly one at that. Here are some ways you can cut those premiums significantly:

1. Consider restricting your cover to third party rather than comprehensive. With the former you are insured for the damage you do to other vehicles but generally not to your own car.

2. Build up your no-claims bonus (i.e. don't claim!). Protect your no-claims bonus even if you do claim by paying a little more. No-claims discounts can cut premiums by up to 75 per cent, though generally they are much less.

3. Drive less! The fewer miles you drive each year, the less your cover will cost. Make sure your insurer has an accurate estimate of your annual mileage. Driving less than the 8,000-12,000 average should get you a discount.

4. Installing security measures such as car alarms, immobilisers and tracking devices makes you a better risk and so should help cut your premiums.

5. Parking the car in a garage, or at least on a private driveway, should also bring premiums down. Generally, having to park on the street, especially in a city, will bump up your costs.

6. Paying your insurance in one lump sum can work out cheaper than paying monthly or quarterly. Insurers may also give a discount if you pay by direct debit.

7. If you have a family, try and restrict the number of drivers on your policy to just one other person. It may also be cheaper for you to insure offspring temporarily, such as during school or university holidays.

8. Most policies carry a compulsory excess - the amount you pay on a claim before the insurer pays the rest. Low-risk drivers may choose to increase this, and the insurance company will offer lower premiums in return.

9. Cash in on your sex! Young men are notoriously high-risk drivers, and women will frequently be offered lower premiums. If you're part of a couple, it may be cheaper to insure the car in the woman's name.