When it comes to buying your car insurance without a doubt the cheapest deals can be found online, this is simply due to the fact that companies who sell car insurance online dont have the overheads that high street companies do or have to have large amounts of staff and so can pass these savings onto you by offering cheaper premiums and incentives.

Not only can you get the cheapest premiums but you can do so all from the comfort of your own home, you are able to shop online at a time that suits you 247. Along with this you can also take full advantage of being able to get almost instant quotes and also compare a huge range of premium costs with a lot of companies at the same time. By doing this you ensure that you get the policy that you need while making the most savings. Another added benefit to shopping online for your car insurance is the amount of information you can find when it comes to the many different types of policy available.

The type of policy that you buy for your car insurance covers you for exactly the same as it would had you bought it from the high street, the only difference is that you make savings. When making a comparison check for the cheapest premiums it is essential that you make sure you know what the policy involves.

Some companies throw in incentives to get to sign with them such as offering free breakdown cover for a specified amount of time or similar offers and this is where you are able to make the biggest savings.

Bear in mind that if a policy is exceptionally cheap them it will probably only cover the very bare essentials and somewhere in the small print it could state that you will have to add additional cover. This is when the cheapest isnt always the best, as having to add on cover can boost up the premium considerably.

Before making comparisons for premiums you will of course have to know what type of car insurance you require and of course what that cover will give you. There are two main types of insurance and these are fully comprehensive which is the most expensive as it generally covers just about everything and third party which covers for incidents such as the theft of your car.

There are many other additional components when it comes to car insurance and you would be wise to check the options that are available. Of course the cover you need will depend on such as your age, type and size of car and how old the car is.

After so many experts have warned us that the cost of car insurance is on the rise, what’s happened? It’s fallen! It’s mostly down to the growing impact of shopping online.

In the second half of 2005 the average car insurance premium fell from 470.17 to 462.15. But it’s the silver surfers who’ve benefited most. During the last six months of last year, drivers over the age of 65 have seen their average premium fall by 4.5% from 342 to 347. What is most surprising are the huge differences in premiums between providers. Differences of 40% between the most expensive and the cheapest are common.

It seems that most motorists are not aware of this as every year, half of them automatically renew their insurance with their existing insurer. A further 19% only bother to get one competitive quotation.

And readers will be surprised who sells the expensive policies. A recent survey in Which, the consumer magazine, shows that Norwich Union – the UK’s biggest insurer – failed to come top in any of the 36 driver categories surveyed. Direct Line, another well-known name, only managed one top spot.

This is down to the marketing strategies of the big brand names. They have been building up their client base with low prices and heavy advertising and then gradually increase prices. They are clearly relying on apathy and brand loyalty to keep their clients. And with 50% automatically renewing, it works!

But if you decide to shop around, be careful. A low price isn’t everything. Some policies have mouth-wateringly low prices but skimp elsewhere.

For example, when your car is being repaired, do you want a courtesy car? Some policies only pay 100 or so for stolen audio equipment. Is that enough? Do you want to insure your personal belongings whilst they’re in your car? And crucially, some comprehensive policies won’t provide third party cover if you to drive another person’s car – even with their permission!

Before you decide, it’s wise to consider all these aspects.

But going back to price, if you think prices are cheapest on the Internet, you’re right! Internet quotations are normally 5% – 10% cheaper than telephone quotes.

When Internet shopping, most people look for the cheapest quote and then read the details about the cheapest policy to check out that they provide the cover that’s needed. You can hunt for the best deals by searching under car insurance but some of the discount insurance sites are more easily found if you type in discount car insurance or cheap car insurance.

But please remember, when renewal time comes around go shopping again. Don’t automatically renew! It’s so easy on the Internet as I found this year. My previous insurer quoted me 945 and I eventually bought it for 702. A saving of 243 for 30 minutes work.