What happens when your year of free car insurance runs out?

Thousands who got free cover with their new car last March will soon find out Thousands of drivers across the UK could be in for a nasty shock when they see the cost of renewing their insurance policies. Last March saw more new cars sold than in any month in the last five years, with almost half a million being driven off the forecourts. And many of these will have been sold with the benefit of a year's free insurance cover.

Since the introduction of the bi-annual number plate change system in 1999, March has consistently been a focal point for new car buying, accounting for almost 20 per cent of the vehicles purchased each year. According to the Society of Motor Manufacturers and Traders (SMMT), attractive dealer packages and consumer confidence in the economy combined to raise the total vehicles bought to 466,955 in March 2004.

The one year's free insurance offered by manufacturers such as Ford, Vauxhall and Renault is an offer which has proved particularly attractive to young drivers, many of whom will now be faced with having to buy car insurance for the first time. Aware of the high cost of car insurance for younger drivers, motor insurance quote finder www.motorinsurance.co.uk is offering advice on how to reduce insurance premiums.

Consumers can find advice on how to reduce the cost of their car insurance by going to www.motorinsurance.co.uk/free-insurance-end.

Tips for cheaper car insurance: When it's time to renew your insurance, make sure you shop around. Research has shown that a third of people who are offered free insurance renew their policy with their existing insurer, even though just a little time spent investigating could save them money. Consider using an insurance broker, who'll search a panel of insurers to find the best deal Buy your motor insurance online, as it tends to be cheaper. In fact, most insurers offer a discount for policies bought via the Internet Ensure that your car is fitted with an alarm and an immobiliser. The more difficult it is for thieves to break in to your car, the easier it will be to reduce the cost of your car insurance Park your car in a secure location. A locked garage is ideal, but a secure off-road parking space can also potentially lower your premium Many insurers will reward drivers who hold advanced driving qualifications. Look out for courses which meet the standards of the Institute of Advanced Motorists Arrange with the insurer to pay a higher excess. Most will have a compulsory minimum excess, but agreeing to pay more will usually reduce your premium If you only drive a few thousand miles each year make sure that you let the insurer know; this low mileage may well be reflected in the price of your insurance. However, be careful not to exceed your stated mileage, or you could find your insurance invalid Andrew Dunkerley, Managing Director of www.motorinsurance.co.uk, comments: "We've heard of cases where young drivers in particular have found it cheaper to buy a brand new car with a year's free insurance than picking up a used vehicle and sorting out their insurance separately. However, many who bought in March last year will be faced with a shock when it comes to renewing their policy. The cost of insuring a young driver can be very high but straightforward actions such as fitting your car with an immobiliser, or taking the time to search for a better deal, can provide significant savings."