So how do you avoid paying over the odds? Age and gender make a big difference to the premium, as does your address.

Any chance, though, that you could build a garage or negotiate off-street parking? This could cut your premium by about 10%. It might also help if you fit a security device such as a steering lock or immobiliser.

If you plan to buy a new car, choose the make and model with care. Insurers classify cars into about 20 different bands. If your car’s not worth much, think about insuring only for third party, fire and theft.

Be wary of glossy adverts promising spectacular savings and cast a sceptical eye over specialist insurers. I recently tested Sheilas’ Wheels, which promises women a “bonzer” deal. I got several cheaper quotes from mainstream firms.

But check out Privilege if you have a clean driving record: its premiums are often cheaper than rivals.

My top tip is to wait until you get older. If you are in your teens or early twenties, the premiums will make your eyes water. The only hope is to piggyback on your parents’ insurance or opt for a policy such as Norwich Union’s Pay As You Drive.

Drivers past the first flush of youth should try the following three ways to get a better deal:

1. Be a premium tart

ALMOST 75% of motorists renew with their existing insurer but loyalty is expensive. The AA’s Shoparound premium rose by less than 2% in the final quarter of last year to £467.82, more than £300 less than the typical premium.

There’s plenty of competition in the market. Alliance & Leicester, for example, started selling car insurance this month. You can also pick up a policy at the supermarket or Post Office.

I would start with one of the internet sites that compare prices from about 50 insurers. My favourites are insurancewide.com and confused.com.

The sites don’t always list every company, so contact a few insurers. Tesco and Direct Line are often omitted from comparison sites but tend to quote cheap premiums.

You might be able to knock 10% or 15% off the premium if you buy via the internet. Check out any cashback deals, too.

And why not haggle? If you take the best quote to your existing insurer, it might match the price to keep your business.

Always make sure you are comparing like with like before you buy, particularly online.

2. Pay premium in full

DRIVERS are often tempted to spread the annual cost by paying in monthly instalments. But all insurers charge more if you pay monthly — some of them a lot more.

If you really cannot find the money upfront, why not take out a 0% credit card and pay the premium with your plastic? As long as you clear the debt before the interest-free period expires, you will be quids in.

3. Drive carefully

YOU should try your hardest to avoid a speeding conviction. Some insurers take no notice of the first one, but then it gets serious. The premium could go up by more than 50% after a second speeding offence.

A motorist who has been convicted of driving without due care and attention could find it tricky to get cover.

Careful drivers might also be willing to pay more towards any claim, or be able to avoid claims completely. The standard “excess” is £150, but you can knock about 10% off the premium by agreeing to pay more towards the cost of a claim.

Drivers who do not claim for at least five years can earn up to 40% off their premiums.

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