It’s one of those things we hate spending money on, but something we’re so grateful for when we need it.

Car insurance.

With so many options out there, it’s tricky to navigate your way through the minefield of excesses, penalties for young drivers and making the decision between market value and agreed value.

But you can make it easier for yourself when it comes to insurance renewal time.

Here are some things to be mindful of when it’s time to renew that policy.

• Most companies allow you to pay monthly or annually. While not everyone has the cash to pay up front, your insurance company will reward you with a cheaper rate by paying in one hit.
• Seniors can often get a cheaper rate, with flexible payment options.
• By increasing the excess you agree to pay, you can lower your premium. This is a popular way to quickly and easily reduce your total policy cost – but remember, if you have an accident, you may be liable for the full excess amount.
• A lot of insurance companies offer discounts for good drivers, so if you haven’t had any accidents in the past few years, it’s worth asking for additional discounts.
• If you’re a member of a roadside assistance club, make sure you’re not paying for this service as an extra on your insurance premium.
• Don’t be afraid to shop around if you think the quote from your existing company is too high. Get quotes from a selection of other companies; at least three. If you want to stay with your existing insurer, sometimes they will price match a quote from a competitor.
• More insurers are offering a drive less, pay less option. If you drive less than the average person your age within your postcode, you may be entitled to a discount.
• Fitting an alarm or immobiliser can also attract a discount. Many new cars have them fitted as standard, so make the time to check.
• A lot of insurers offer house and contents insurance as well as vehicle, so bundle them together to save more on both premiums.
• Know what your car is worth and view your premium with that in mind. If your car is written off after an accident, your insurer may pay out an agreed value, but you’ll pay more on your premium than if you are paid market value.
• Where you park your car at night can also affect your premium; those who park on the street will pay more than someone who keeps their car locked away in a double garage. It might be worth clearing out some junk in the garage or carport to make room for your car – it could save you money.
• Protecting your no-claim bonus is the best way to save money. That rating one could knock off as much as 20% from your policy.

While these tips are useful reminders about how to avoid paying too much car insurance, the best way to keep your car insurance premium at a minimum is to be a safe and careful driver and maintain an excellent driving record.