Choosing car insurance

Few of us think to shop around for a better deal on our car insurance renewal quote.

However, there are some easy ways to make savings. Spend 10 minutes finding out how to get the best deal.

In a competitive market, providers are always looking to offer new and better deals, and increasingly there are specialist policies available for low-risk groups such as female drivers.

If you're about to renew your car insurance, take 10 minutes to check out your options.

Before you begin: Dig out your documents
If you've received a reminder to renew your car insurance, have it handy. It's worth having your motor insurance certificate and your insurance policy notes document ready, too.

You'll also need other information handy, such as when you passed your test; any driving convictions may have had in the last five years, details of any registered disabilities, and details of any modifications you've recently made to your car.

Step 1: Familiarise yourself with your current car insurance
To compare like with like, you need to know what type of insurance you currently buy from your insurer. Is it Third party only? Third party, fire and theft? Comprehensive?

Also look in your policy notes to find out any special features for your policy, such as:
- Courtesy car (when you car is being repaired)
- Protected no-claims bonus
- Roadside assistance
- Free legal advice
- The amount of excess on the policy

Make a note of the amount your insurer is quoting to renew your policy too.

Step 2: Decide what type of cover you want
Don't automatically choose the same policy you had before, or go straight for Comprehensive cover. You can save up to a third on quotes if you choose third-party, fire and theft or third-party-only policies. If your car is not worth a great deal, you may want to consider these cheaper options.

Step 3: Decide on your must-have car insurance features
All car insurance policies cover the same basic ground. They pay out when another driver claims against you for damage you cause to them or their car.

Where many policies (even very similarly-priced ones) can differ is in the additional features they offer (see Step 1). To help you shortlist quotes, you need to decide which of these features, if any, are must-haves.

For instance, if you can't do without a car for even a few days because you need it for work, you might only consider policies offering a courtesy car for when yours is being repaired. Or, if you car is old and sometimes breaks down, you may favour policies offering free roadside assistance.

Step 4: Get some car insurance quotes
The quickest way to get a list of the best quotes is to use one of the many comparison websites that do all the leg-work for you.

You simply register on the site and fill in one form. You are then presented with a list of insurers and their best quotes, based on the information you provide. Your details are on file, so if you want to change any of them, it saves you having to fill in the whole form again.

Step 5: Find out if you're in a low-risk group
Certain groups of drivers can benefit from lower premiums when they take out a policy with a specialist insurer. Women, for instance, now have a range of female-only insurers who offer preferential rates. Older drivers too, usually with several years of claim-free driving, have a number of companies that cater specifically for them.

Step 6: Compare car insurance quotes
To start filtering the quotes you receive, start by discarding quotes that:
- Are much more expensive than your renewal quote say, by more than 10% - Do not come with your must-have features
- Have a high premium for paying by instalments (if you want to pay over a year or six months)

Now you have a shortlist of quotes and companies to compare. Factor in your own experience of companies and policies, and ask family, friends and colleagues for their thoughts. A personal recommendation can go a long way.

As a clincher, ring up a provider you're considering and tell them you're thinking of becoming a customer. Is it easy to get through? Are you treated with respect? Are they helpful?

Step 7: Negotiate with your current insurer
Even if you haven't unearthed a better offer, it's always worth calling your insurer and asking them if they can improve the price, or add a feature you want. Tell them you've got a better offer and see what they do.

If you have got a better quote, ask your current insurer to match it. Providers are very keen to retain customers, and may well lower their price if you threaten to leave.

If they are prepared to cut their price, and you're satisfied with the service so far, you're probably best sticking with your current insurer. If not, it's time to call the company that's top of your shortlist.