Finding the best Deal

Get proof of your driving history - If you are taking out insurance in your own name for the first time but have a good record, get a letter from your past insurer or company scheme.

Use your age - There is a remarkable drop in premiums after your 20s. IInsurance companies target the over 50s for special policies and discounted premiums. The lower rates for older drivers reflect the fact that older people make far fewer claims than average as they tend to drive fewer miles and avoid being on the roads at peak times. They are also, apparently, less likely to make fraudulent or inflated claims. The savings begin at 50 and reach their peak for drivers in their mid 60s. But once drivers reach 75 rates start rising sharply again.

Use your gender - Female under-25s obtain premium quotes which are about 20% less than males, but the picture reverses after that, with insurers charging older female drivers slightly more than older male drivers.

Protect your no-claims bonus - Most firms will let you make two claims in three years before you lose your discount.

Avoid unnecessary extras - For example, if you drive abroad, look for a policy that offers free European cover rather than an add-on.

Don't lie - The most common lie is to register cars outside London or the other high-rated metropolitan areas, either at parents or at fictitious addresses. Doing this automatically invalidates your insurance.

Become a valued customer - You may get a discount for insuring your home with the same insurer as your car. Likewise, two cars in the same family might be better with the same insurer than separate ones. You may also be given a loyalty bonus if you stay with a firm for several years.

Exotic problems - Beware of the temptation to buy import cars at reduced prices. Many vehicles do not meet British standards of specification and insurers are becoming very nervous about providing cover.