Question: We have just got our car insurance renewal and our cover has gone up by nearly £200 over last year.

We have made no claims or changed any of our other circumstances. We insure both cars on the same policy. What can we do to reduce the cost?

Answer: Ouch! Unfortunately premiums are on the increase.
According to comparison site comparethemarket.com the average premium rose by £51 to £704 over the last year due to the rising cost of second hand cars and higher repair bills.
That said there are ways to bring your costs down, and the same report claims the average person could save £122 by shopping around for their cover.

So my first piece of advice would be to shop around.

Try comparison sites such as comparethemarket.com or moneysupermarkert.com, but also remember firms such as Direct Line are not on these site so need to be visited separately.

You may also find cover is cheaper if you separate the two cars rather than combine the cover in a multi-car plan.

Once you have new quotes, and if they are cheaper than your initial renewal, you can always go back to your existing insurer and ask them to match or better the new prices.

There are a number of other ways you can reduce your premium even further if you want. You say you have two cars on the policy but not how many named drivers — the more you have the more expensive the premium.

Do you all need to drive the cars you are named on? This is especially true for any younger drivers insured on their parent’s more powerful cars.

Can you increase the voluntary excess? The excess, the first part of any claim you pay, is made up of two parts, a compulsory excess and then a voluntary one. Increasing this voluntary one will reduce your premiums. But make sure you can afford to pay the new higher excess if you have to make a claim.

Think about how you describe your occupation, as what you do has a bearing on the price you pay. For example a journalist could legitimately describe themselves as a writer to reduce costs, and a chef a caterer.

How many miles do you actually drive each year? The lower the mileage the cheaper the cover will be. You could save up to 13 percent by reducing your mileage from 10,000 to 9,000 miles a year.

Consider having a black box fitted. These are a great way to reduce premium for young drivers and those who only drive limited amounts and typically not late at night.

Can you afford to pay your premium annually rather than monthly? Insurers usually charge interest on monthly premium payments.

Finally according to GoCompare.com the further from the renewal you get a quote the better the saving. Its customers saved over 55 percent on average buying their insurance 27 days before their renewal date, compared with those renewing on the day.