Young drivers and insurance - the facts - How to cut insurance costs

Teenagers complain about insurance premiums that are higher than the value of their car, but there are things you can do to help lower the cost:

• Shop around. There are numerous insurers out there, so take time to find the best one for you. Price comparison sites such as confused.com are a good starting point, but there's no harm in directly approaching the insurer they recommend afterwards.

• Try specialist insurers such as www.youngmarmalade.co.uk (tel 0845 223 9080) or Norwich Union's (tel 0800 092 9564) 'Pay-as-you-drive' scheme (click here for more information), which uses GPS to track your car. Premiums are then calculated on how often you drive, where you drive and at what time of the day.

• Take an advanced driving test such as the Pass Plus certificate (www.passplus.org.uk), which can earn a discount of up to 25%.

• Limit your mileage. Agreeing to cover less than 5000 miles a year can save you around 10% of the insurance cost.

• If you join a high-profile car owners' club you will often be eligible for preferential insurance rates, saving up to 15% on standard premiums.

• Look around for offers of free insurance with new cars, which manufacturers often give as a sales incentive. Be sure you can afford to pay the premiums in year-two, though.

• Fit approved alarms and security devices for typical savings of around 5%.

• Parking your car off the road or in a garage will often net a discount of 5-10%.