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There are several ways you can cut down on your car insurance bill if you know how your insurer manages the risk of claims. With this knowledge, you can encourage your insurer to think there's a low risk of you making a claim.

General car insurance is based on the idea that all policyholders collected together pay into a fund that ends up with more than enough money to pay all the claims. To calculate the premium, the insurer uses math and statistics based on gender, age, lifestyle and other key factors. The aim is to predict the likely number and value of claims. This total is divided between all the policyholders. If the insurer gets it right, the amount collected will be enough to pay all claims and make a profit. Let's say the insurer has only one class of drivers, i.e. young male drivers with new driver's licenses. It's able to calculate the likely claims from this group and charge a huge premium. The problem with this calculation is the premium charged is standardized. No matter how reckless young male drivers can be, not all will get into an accident every day. Some are lucky and never have an accident.

Don't let them indulge you the equivalent of size 12 shoes, if you wear size 6. As a safe low mileage driver you deserve lower car insurance quotes.

The statistics show an infrequent or low-mileage driver has a lower risk profile. The same can be said for different types of driving. City drivers have a higher risk than suburban or country drivers. People who drive family cars have better safety records than those who drive sports cars. To cover these possibilities, look for "Pay as you drive" options. This depends on the use of telematics or tracking devices, which allow the insurer to monitor your actual driving in real time. Your driving style and vehicle performance are beamed continuously to the insurer, giving precise information of how well and how far you drive. This option actually pays you to adopt safer driving practices. If you work from home or switch to public transport, you avoid peak traffic and become a lower risk driver.

"Pay as you drive" or "pay how you drive" options are not the same as standard car insurance because they give you a direct reward for the type of vehicle you drive, the shorter distance travelled, whether you have a safe driving style, the time you drive, and where you drive. These options are a here-and-now response to the one-size-fits-all pricing for general car insurance. Traditional car insurance is handicapped by relying on historical statistics. It takes years for these charts to change and reflect current driver behavior.

If you're a safe driver or infrequent driver, don't get herded into standardized insurance. Get free car insurance quotes offering the "pay as you drive" options to shave a big discount off the standard rates.