Of course, if you go to a multiple insurance quote service, such as BonaportDirect, they are doing all the legwork for you - saving you the hassle of shopping around!!

2. Rule two: type of car. A mini is going to be cheaper to insure than a BMW Z3 - before you buy your car, check what the insurance is likely to be. Using an online quote service is great for this - you can alter the car and specification having entered your details such as where you live, without annoying a call centre employee!

3. Security. It takes a few minutes to install an alarm or immobiliser - and this can make a BIG difference to your premium. Trackers offered by BSI registered tracking companies can also help reduce your premium. If you are going to fit a security product to your car, make sure that it's a Thatcham approved device, as this is the standard to which most UK insurance companies adhere. Remember to keep the installation certificate, as your insurer may wish to see this, in the event for a claim.

4. Area. Where your car is kept overnight makes a BIG difference to your premium. If crime rates are perceived to be high in your area, you may have to pay more for your insurance. The level of 'risk' is estimated by your postcode area.

BEWARE: some direct insurers REFUSE to cover certain postcodes online, as a matter of course. This can be extremely annoying, especially if you have just spent ten minutes entering all your details for nothing! Again, use a multiple insurance company service such as BonaportDirect - they are more likely to be able to quote for your postcode than a single agent service.

If you live in what is perceived to be a very high risk area, you may have to fit a Thatcham approved security device to get cover at all - but it may reduce the premium, so is worth it in the end.

5. Drivers. If your 18 year old daughter wants to drive your Jaguar S-Type, be prepared for a hike in the premium! When you choose your insurance you can usually choose:

Any Driver - this will allow anybody to drive your car (sometimes excluding those under 25, check the small print!) and is consequently going to be more expensive than:

Insured and named driver - yourself and one other driver (i.e. your spouse or partner) or:

Insured and multiple named drivers - yourself and other specified drivers.

A number of factors will affect the price of your premium, including the AGE of the driver, the EXPERIENCE of the driver (the longer they have been driving, the less you can expect to pay), CLAIMS and ACCIDENTS history and DISABILITIES.

Other factors may affect the premium: for example, some insurance companies rate homeowners as more stable 'better risks' than tenants - which is why you may be asked these questions when applying for car insurance.

6. How often/how the car is used. If you just use the car to potter to the shops on a Saturday, expect to pay less than someone who is using the car in their role as travelling salesman!

Insurers often allow you to choose 'social and domestic' usage of the car, including 'travel to and from one place of work.' Using the car to get to work is different to using the car 'for' work (i.e. travelling salesman - taxi drivers will need to apply for special cover as a taxi driver). Using the car FOR work purposes will increase your premium.

7. No claims bonus and Excess. This can make a BIG difference to your insurance premium - and may be worth protecting. If you have a so-called CLAIM FREE (not 'blame' free) record as a driver you can obtain a No Claims Bonus discount (or 'NCB'). A No Claims Discount can be as much as 60% after four or five claims-free years. Just look at the difference it could make to your premium:

If you have a maximum No Claims Bonus, some insurers will enable you to 'protect' this for a small extra fee. This would enable you to claim on your insurance, without losing the discount that you have built up over the years. Typically, insurers allow about two claims in a three or five year period - it really is worth considering, whatever your premium.

You may also be eligible for cheaper insurance if you are prepared to pay a larger excess. The majority of insurance policies operate a so-called EXCESS - this is the amount which you must pay in the event of a claim, usually starting at around £50. This means that if you have a claim for £500, the insurer may cover you for £450 but you will have to pay the first £50 yourself.

If you are prepared to pay more Excess (sometimes up to £250) this will decrease your premium. Using an online quote engine enables you to gauge just how much you can save.