10 easy ways to save on car insurance

Here are ten simple ways to pay less for your motor insurance:

1. Shop around using insurance comparison sites – self explanatory.

2. Don't pay monthly – Your insurer charges you about 24% extra over the year for the privilege. Even if you pay by credit card and pay it off over six months it will still work out cheaper than spreading it over 12 months at 24% interest.

3. Don't accept a renewal quote - Customer loyalty means nothing to insurers. All the big boys chase new customers by offering big discounts, often charging half the price they charge existing customers for the same cover.

4. Don't make small claims, and set your excess high – Claims under £500 are often not worthwhile, your insurer will take them out of next year's premiums, or refuse to re-insure you. Setting a high excess level when you apply for the insurance can potentially bring the premium down substantially.

5. Be more specific about your job - Certain occupations aren't favoured by insurers, but even the sub-divisions within a sector can make a big difference to your premiums. Go to http://www.moneysavingexpert.com/insurance/car-insurance-job-picker to find out what difference a slightly different job title can make to your premiums.

6. Use security devices – And tell your insurer about them.

7. Don't pimp your ride – Insurers don't like modded cars and will charge you extra or not insure you at all.

8. Don't use the address of a country dwelling family member - It might cut your premiums, but if you ever need to claim and your insurer becomes suspicious it might invalidate your insurance policy.

9. Add another driver to your policy - If they have a clean record it can actually reduce the total premium.

10. Buy a different car - The model you drive is the single biggest factor in determining your premiums, choose wisely.

More at: http://www.guardian.co.uk/money/2008/jun/16/carinsurance

Struggling Direct Line and Churchill insurance owners look for rescue package

The insurance arm of Royal Bank of Scotland (RBS), the struggling parent company of top UK insurance brands Direct Line and Churchill, is subject to an advanced bid valued in excess of £3 billion. If successful private-equity group CVC and Swiss Re, the world’s largest reinsurance group would take a 51% stake in the business, according to The Times.

This could affect as much as half the population as, with 26 million policies, RBS Insurance is the second-largest general insurer in Britain, the largest motor insurer and the second-largest home, travel and pet insurer.

Like most other banks RBS has been hit hard by the credit crunch, and recently lost chief executive Fred Goodwin who resigned after the bank was forced to sign up to a rescue deal likely to make the British government its controlling shareholder in the short term.