Cutting the cost of your car insurance is more important than ever these days. According to the AA's British Insurance Premium Index, the average annual comprehensive motor insurance premium is running about £822 annually. That's it's highest rate ever. But you can cut your car insurance premium in half if you shop around carefully and pay attention to a few little factors that can raise or lower your car insurance costs.

1. Shop around.

Shopping around is the key to getting the best possible rate on your car insurance. Whether you're buying cover for the first time or renewing your existing policy, you should check insurance comparison sites to find the best possible deals. Ask for quotes from a number of different insurance providers - but be sure that you check the same options with each provider so that you are comparing like with like.

2. Get quotes from an insurance broker.

Insurance brokers represent many different insurers, so when you work through a broker, you can check prices from a range of insurers at the same time. Do keep in mind, though, that your insurance broker has an agenda as well - and will only tell you about the insurance providers that he or she represents.

3. Buy directly from the insurer.

When you cut out the middleman, you'll save because there's one less cut to be taken out of the pie. One way to benefit from both the variety offered by an insurance broker is to check quotes through a broker and then get a direct quote from the insurer's web site.

4. Check multiple quotes through an insurance comparison site.

There are two kinds of insurance comparison sites. One is a broker site, where many insurers are represented and the web site owner gets a commission for each referral to an insurance company. The other type is the independent price comparison search engine which offers honest comparisons and reviews. You can apply for quotes online both through the broker site and at the insurer's own web site and decide which offers you the best deal.

5. Get quotes for no-frills and internet-only car insurance

If you want comprehensive car insurance but are not bothered about all of the optional extras included in many policies, you could save money with simple, no-frills cover. These offer all the comprehensive cover basics to keep you on the road but cut out some of the options many drivers never use to save you money. You could also cut your premiums by using internet-only insurers who keep their overheads low by only selling and administering their policies online. They claim that these savings are passed onto the customer in lower premiums. Again, the key is to shop around and confirm these claims for yourself.

6. Buy your insurance online - but not before double-checking your quote on the phone or in person.

Buying online will typically save you 10% to 20% on your premium, but it's not a hard and fast rule. Be sure to check with the insurer directly as well though.

Shopping around can really pay off but, keep in mind that there are other things you can do to cut your premiums as well. The top five tips for reducing your car insurance premium in addition to shopping around for the best deal are:

1. Reduce the number of miles you drive annually.

2. Add your partner to your policy.

3. Avoid making claims for small accidents.

4. Pay for your insurance annually.

5. Take an advanced driving course.