The recent economic recession has left many people in a less than preferable financial situation. Many are looking for ways to cut down on expenses and reducing your car insurance premiums is an excellent way of saving money. The following tips will help you decrease this monthly expense.

Increase your excess and decrease the premiums:
This is one of the most effective ways of decreasing your car insurance monthly payment. The excess is the amount of money that you would have to pay when making a claim from your insurance. If you request a higher deductible or excess then you will benefit from a lower premium.
Are you over insured?

Many people have more than enough cover. This means that you would be paying a lot more than you need to. For example, if you have an older car then comprehensive cover would be unnecessary. It would make a lot more financial sense if you downgraded to a more basic insurance plan and simply built up an emergency fund from which you can make a withdrawal if your car needs to be repaired or replaced.

Decrease the amount of driving you do:
Many people do not realize that they can benefit from excellent specials and discounts if they decrease the amount of driving done. Using public transports, walking and carpooling are all more environmentally friendly and can actually help you save money on your insurance policy.

Make the car safer and more secure:
Your premiums are largely based on your risk profile. If you can improve your risk profile then you can reduce your premiums. Fitting the vehicle with airbags, ABS braking systems, an alarm system and a tracking device can all help you decrease your risk and result in lower insurance payments.

Use one insurance company for all your insurance needs:
If you use one insurance company for all your insurance needs then you can benefit from umbrella packages and discounts. It is also a lot more convenient if you manage all your insurance policies with one insurance company. For example, you can use one company for your life insurance, car insurance and home insurance policy.