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Astonishing figures recently released show that some people are willing to drive without car insurance or drink and drive after a night out in order to cut costs. More than 1.3 million motorists* are happy to take on the risks involved in drink driving simply to save on a taxi fare. If the recession is hitting some people that hard, perhaps it’s time for some sensible ways to find cheap insurance.

1. Consider Your Risks

Insurance is a game of risk. There are two reasons why an insurer may offer you cheap insurance: a low chance of you needing to make a claim and a low claim value. The insurer is trying to get the balance right (based on historical data and assumptions) between premium payments coming in and the claim payments going out.

With that in mind in your pursuit of cheap insurance, consider what you can do to present yourself as a lower risk. For your car insurance, this could mean parking your car in the garage or installing a tracker. For products such as life and health insurance, take steps to quit smoking and generally prove to the insurers that you live a healthy lifestyle.

2. Only Pay For What You Need

Sometimes you can uncover cheap insurance by simply removing the added extras which you’re never going to need. Likewise, if you’re offered cheap insurance, the first thing you should do is check to make sure the cover you actually need is included. Common examples include courtesy car cover when you have a second car in the household and buying health or life insurance which may already be provided to some extent by your employer.

3. Annual or Monthly Payments

If you have the option, you should find a way to pay for your insurance in one lump sum. If you chose to pay monthly premiums, the insurer could effectively be “loaning” you the full premium and are likely to apply interest on top – undoing your hard work in finding cheap insurance.

4. Don’t Just Accept Renewal Quotes

When your current policy is up for renewal, you’ll receive a notice from your insurer. Included in this will be a quote to renew with them. This is rarely the cheapest option. The insurers rely on laziness to retain your business and recoup some of their costs. To make sure your insurance is as cheap as possible, have a hunt around for the best deals.

5. Compare Online and Haggle On The Phone

The easiest way to compare the insurance market and find cheap insurance is to use an insurance comparison website. However, you can get very cheap insurance if you take it one step further and haggle a little on the phone. The insurance companies who provided your best online quotes will be eager to win your business – take advantage and ask for a discount.

* Opinium Research carried out an online poll of 2,359 British adults on behalf of Direct Line from Thursday 5th February and Monday 9th February 2009

Top Ways to Change Your Current Car Insurance into Cheap Insurance:

Get Theft Devices: Most new cars have theft devices. Some are automatic and some have to be started at the touch of a button, but all usually get discounts on car insurance. Also, some states provide extra discounts for such things as window sketching. Ask for a Multiple Car Discount: Did you know sometimes insuring two cars can be the same price as insuring one? If not the same price, insuring another car usually does not cost as much as you may think. If you have two cars, it is very wise to check with your insurance agent, or while obtaining your online insurance quote, to make sure you can get this discount on your car insurance. Also, if you are planning to sell a second car, the cheap car insurance trick would be to keep that car on just liability to get your multiple car discount.

Sometimes people are surprised when they call their car insurance company to take a car off of their insurance, only to find that their price did not go down but possibly increased! Stick With Yearly Policies: Choosing a yearly policy can extend your savings on your car insurance. Purchasing a yearly policy instead of a six month policy gives you a rate that cannot be changed for one year vs. changing every six months.

Look Into Comprehensive Storage Coverage: If you are planning to store your car for any period of time, you can save on your car insurance by only keeping comprehensive coverage during the storage time. Since the car would be stored, it is very unlikely it will get in a collision or need the liability coverage. Re-Check Your Mileage: This is a great way to get cheap car insurance: If you are really close to the “miles to work” break-off, you may want to check your mileage closely. When your car insurance company or insurance agent asks you “How many miles do you drive to work one way?” this is a crucial question that will designate you into a particular class.

Each class can have significant differences in prices. Look for a Group Discount: Many companies offer a discount on car insurance for being affiliated with certain organizations. These can range from credit unions, college sororities, or just having a certain credit card. Call your service center and ask them for a list of organization affiliations. Lower Liability, Comprehensive, Collision, or Medical Payments Coverages: Of course, you can lower your basic coverages but it may just give you the cheap insurance you need right no!. Comprehensive and collision are probably the first to look at lowering by increasing your deductibles on your car insurance. Most vehicles that are on bank loans can have up to a 00 deductible.

Next, lowering your liability and medical payments could help, but only if you are having a hard time paying for your premium and is not recommended for general savings. Make EFT Payments: Many car insurance companies are now charging up to .00 or more for mail payments, but sometimes nothing if you choose to have payments automatically deducted. And, sometimes the deductions can come from your credit card, so you don’t have to worry if the money will be in your bank account when payment time comes.

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