Car insurance is a legal necessity in the UK, but that doesn’t mean you have to pay excessively for it.

There are a host of ways to reduce your car insurance premiums. Here we offer our top tips:

- Choose your car carefully: If you’re in the market for a new car, consider insurance costs before you buy. Generally drivers of cars with smaller engines and no modifications will pay less for car insurance, so keep your choice conventional. Vehicles are categorised into insurance groups from 1-20 (expanding to 1-50 in December, 2009). The higher the insurance group, the higher the premiums.

- Shop around online: Most insurers offer discounts if you buy online due to the savings they make on overheads. Comparison websites allow you to compare rates from as many as 100 insurers with one search so you get an overview of what’s available.

- Get a quote from a specialist: There are now a number of specialist insurers for different categories of motorists such as for drivers of modified cars, women drivers, young drivers and more. Consider these quotes alongside those from conventional insurers as they may offer special features you can’t find elsewhere.

- Only get the cover you need: Clearly the more cover you have the better, but don’t pay for policy options you’ll never need. For example, if you drive a relatively cheap vehicle you may prefer a third party, fire and theft policy over a comprehensive deal. Similarly, if you opt for comprehensive cover, consider how you will use the car – don’t pay for business use if you only use the car for social, domestic and pleasure use and commuting. You may also be able to skip a courtesy car if you have a second car in the household.

- Limit the number of drivers: The more drivers on your policy, the more risk you pose to an insurer so only add drivers who use the car regularly – you could always add others on a temporary basis.

- Agree to a mileage limit: If you use the car infrequently or have a second vehicle you may be able to agree to a mileage limit – according to the AA, agreeing to drive less than 12,000 miles a year can slash premiums by around five per cent.

- Boost security: Adding car alarms, tracking devices and immobilisers could all slash your premiums. Thatcham-approved products are particularly favoured by insurers.

- Park in a garage: Insurers can offer discounts of as much as five per cent if you park your car in a garage overnight and in a secure car park during the day.

- Take an advanced course: Proving yourself to be a good driver will earn you favour, so take an advanced driving course such as the Pass Plus – consult with your insurer about which courses offer the largest savings beforehand.

- Increase your voluntary excess: The excess is the amount you agree to pay in the event of an accident – the higher it is set, the less likely you are to make a small claim and so insurers reduce premiums. However, don’t set the bar too high – only set the excess at a level you can easily afford.

These 10 tips should put you on track to significant savings, but remember that you can keep your premiums in check by driving carefully, building up a no-claims discount and avoiding driving convictions. The better your driving record, the more money you should save.