Car insurance can be a hefty additional cost and in the current financial climate, many people are looking to save as much as they can on bills and expenditure.

One way to do so is to shop around for the best value deal for your car insurance, which, according to moneysupermarket.com, could cut the cost of an annual premium by as much as £372.

Alternatively, adding an older driver who shares the use of the vehicle can lower the cost of a policy for younger drivers by as much as £165, while adding a partner could also reduce expenditure by £32.

There are a number of other options available too, including choosing full comprehensive car insurance and car-pooling with colleagues to cut down on the annual mileage clocked up on the vehicle.

Peter Harrison, insurance expert at the price comparison site, commented: “With the cost of Christmas undoubtedly making a dent in peoples' wallets, many will be looking for ways to reign in their outgoings in the New Year. Making savings on every day finances such as insurance can be made by shopping around and taking some easy steps to reduce premiums.

“Looking across the board at standard insurance products, a family could see savings of over £1,100 in 2012 – an impressive boost to the savings pot to start off the New Year.”

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