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If you own a car, motor insurance is not just an option—it is a legal necessity. And you wouldn't want it any other way. If you are involved in an accident or have your car stolen, owning the right kind of auto insurance can help to ease a difficult situation. The information below will provide some answers and help you ask the right questions in order to find the most appropriate solutions.

Shopping for motor insurance? The price you pay for your motot insurance can vary by hundreds of pounds, depending on your driving record, the type of car you have and the insurance company you buy your policy from. Here is a list of things you can do to save money.

Shop Around

Get at least three price quotes. You can call companies directly or access information on the Internet.

Get quotes from different types of insurance companies. Some sell through their own agents. Some sell through independent agents who offer policies from several insurance companies. Other companies sell directly to consumers over the phone or via the Internet. The price may vary depending on the sales method.

But don't shop by price alone. You want a company that answers your questions and handles claims fairly and efficiently. Sources for finding the right kind of company include: word of mouth, i.e. friends, relatives, co-workers; where you can find consumer complaint ratios by company; and consumer magazines. You can also check the financial health of insurance companies through independent rating companies.

Before you buy a car, compare insurance costs

Your premium is based in part on the car’s value, the cost to repair it, its overall safety record and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft, such as air bags, anti-lock brakes, daytime running lights and anti-theft devices.

Cars that are favorite targets for thieves cost more to insure. For more information on car theft, check the National Insurance Crime Bureau (NICB).

Ask for a higher excess
Your excess is the amount of money you pay out-of-pocket before your insurance policy kicks in. By requesting higher excess, you can lower your costs substantially. For example, increasing your deductible from £100 to £300 could reduce your comprehensive coverage premium by 10 to 25 percent. However, keep in mind that you’ll need to have the amount of the excess on hand should something happen to your car.

Reduce coverage in older cars

Consider dropping comprehensive coverage on older cars. It may not be cost-effective to continue insuring cars worth less than 10 times the amount you would pay for coverage. Any claim payment you receive would not substantially exceed your premiums minus the excess. Claims occur on average only once every 11 or 12 years. Auto dealers and banks can tell you the worth of a car, or you can look it up online.

Buy your homeowners and Motor coverage from the same insurer

Many insurers will give you a discount if you buy two or more types of insurance from them. Also, you may get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce premiums for long-time customers. But shop around carefully; you may still save more money buying from a different insurance company even with the multi-policy discount.

Take advantage of low-mileage discounts

Some companies offer discounts to motorists who drive a lower than average number of miles per year.

Ask about group insurance

You may be eligible to get insurance through a group plan from your employer, or through professional, business and alumni groups or other associations. Group plans often provide substantial discounts. Ask your employer, or any groups or clubs of which you are a member, about this option.

Seek out no claims discounts

Most insurance companies offer discounts to policyholders who have not had any accidents for a number of years. You may also qualify for a cut if you have recently taken an advanced driving course, if you are over 50 and retired.

When you comparison shop, be sure to inquire about discounts for the following (availability will vary according to the company):

No accidents in 3 years
Drivers over 50 to 55 years of age
advanced driving course
Student drivers
College students away from home
Air bags
Anti-lock brakes
Daytime running lights
Anti-theft device
Low annual mileage
Motor and homeowners coverage with the same company
More than one car insured with the same company
Long-time customer
But don’t forget that the key to savings is not the discounts but the final price. A company that offers few discounts may still have a lower overall price.