Financially speaking, there is no denying that at the moment times are hard and possibly only getting harder. Price increases across many sectors are forcing consumers to tighten the purse strings and only spend on those essential expenses. However even these essentials are becoming more and more expensive.

Take car insurance, for example. Reports show that over the last two years drivers have faced a 24% increase in their car insurance premiums, meaning that the typical cost of a premium has increased by around £100. It is also predicted that insurance prices are set to continue rising well into the future, which isn't great news for those who own a car.

But what are the reasons for this price increase? Well insurers claim that they are actually paying out more in insurance claims than they are taking in, which could account for the rising costs of premiums.

Another factor could be the number of drivers on the road who are driving whilst uninsured. Driving without insurance is illegal, yet many drivers take the risk in order to save money or perhaps they are ignorant enough to believe they won't need it. At the moment it is estimated that there are around 1.6million drivers on Britain's roads without insurance, which may unfortunately add up to £30 to law-abiding drivers' premiums.

Unfortunately, car insurance is essential for all drivers and not something that can be cut out of a budget. But it may be possible to control the cost of your insurance and ensure your premiums remain affordable.

Firstly insurers are investigating the benefits of electronic insurance documents as opposed to paper ones, which would significantly cut company overheads and therefore costs for motorists.

You should also consider the level of cover you have in place and if you actually require such protection. For example if your car is kept in a locked garage overnight and you inform your insurance provider of this, chances are your premiums will come down. Changing the level of excess will also affect how much you fork out each month, so consider this carefully.

Attached as you may be to your fancy car, the fact is that insurance prices are highly influenced by the type of car you drive. If you can face it, consider downgrading to a less expensive, more fuel efficient vehicle, a move that will undoubtedly save you money in the long run.

Consider doing an online search to find cheap car insurance with the right level of cover for you, a price comparison site can normally offer you a few worthwhile options.

The author of this article is a part of a digital blogging team who work with brands like Confused.com. The content contained in this article is for information purposes only and should not be used to make any financial decisions.