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Insurance is compulsory for all vehicle owners and the cost of premiums seem to be going up year after year. Motorists have to carry the cost for many of the uninsured drivers on the roads, and the soaring cost of compensation claims after relatively minor accidents. There are however many things you can do to keep your premium costs down.

Firstly and most obviously, it’s important to try to remain accident and claim free, as having a good amount of no claims bonus will dramatically reduce your premiums. If you have accumulated a good level of no claims bonus, it is worth considering whether to protect your bonus so that if you do have to make a claim, you will still retain your no claims entitlement. Most insurers offer this as a standard add on to most policies.

The other main tool to reduce premiums is to use one of the many cash back websites on the internet. When you click on a banner or an advert on a standard website, the referring website usually gets a payment from the insurer or the advertising company for sending you to their website. However, the cash back websites do not take these payments themselves and pass the savings on to you. Typically cash back payments on a car or motorbike policy can be anything from £25 to £100. Although it can take many months to get the money paid into your bank account by the cash back site, it is always worth factoring in the amount of the cash back payments when shopping around for quotes for your new policy. Most of the good cash back sites will also pay out on more special premiums such as multi bike policies. It is important to follow this same procedure every year when renewing your policy as the amounts of cash back varies from month to month. Changing insurers every year may be the best way of making sure you always have the most competitive quote. Although multi bike insurance is a relatively specialist product at the moment, many of the mainstream insurers are quickly diversifying their product offerings and more and more are starting to offer those sorts of products to respond to what their customers are asking for.

Cash back websites should also be used for all major online purchases where possible. If you are going to be buying over the internet anyway, it’s always worth trying to get a few percent back from the website. Many major names in the finance and retail world are linked to the cash back sites as are all your favourite high street names.