1. Shop around

Use price comparison sites, ring up brokers and if you are buying a new car ask the dealer. There are millions of insurance policies out there and the more you compare, the more likely you are to find a good deal. It isn't exactly rocket science.

Bear in mind though that no comparison site looks at the whole market, and that firms such as Direct Line and Churchill are consistently omitted from searches. It is well worth approaching them directly because in insurance big often does mean better.

Also, remember that many comparison sites do not compare like-for-like, and will present one policy as being cheaper than another even though the more expensive option includes useful extras. Consider exactly what cover you need, and then ask brokers to compare prices for these terms.

2. Look for policies that exclude what you don't need.

Cheaper policies often offer limited cover, but this is no problem if you do not need it. Many insurers no longer include driving other cars as standard, but if you do not intend driving other vehicles this is hardly a great loss and could save you money. Similarly, you may have no need for the often expensive courtesy car option if you own two vehicles.

3. Keep up to date

Keep your insurer up to date with any changes to your address, vehicle or status. All of these effect the premium you pay, so you may be in for a pleasant surprise if some have changed. Beware though, that you must provide your insurer with completely accurate information, and that they may refuse to pay out if they have been deliberately misled.

4. Buy online

Insurers often offer an online discounts if you buy your policy over the web ? Direct Line offer up to 10 per cent. Don't be shy about ringing up to ask questions before completing the process over the internet.

5. Pay annually

Pay your premium in full each year if you can possibly afford to. Many insurers charge extortionate interest if use wish to pay in monthly installments.

6. Tell your insurer if your annual mileage is low

Many firms now offer discounts for drivers who only do a few thousand miles a year ? if you're not driving you can't crash. If this applies to you then ask your insurer for a suitable discount.

7. Get a garage

Having a secure place to keep your car will also reduce your car insurance premiums. If you have access to a garage then use it and make sure your insurers know you are using it. Roadside parking always leads to more expensive premiums, especially if your postcode is a bit dodgy, so finding a more secure spot may well save you more than it costs.

8. Immobilize your car

Some insurers will offer discounts to drivers who fit alarms or immobilizers. Always remove detachable stereos and valuable items from your car even if you are insured ? those kind of claims will drive your premium sky high when it comes to renewal time.