Car insurance is a very expensive commodity than most of us particularly now that we have a credit crunch and most of us are decidedly feeling the financial pinch! Sadly though we have no choice, because, quite rightly, driving without insurance is a very serious offence which could result in offenders losing their driving licences. However, there are ways and means of reducing the premiums considerably, and a good place to start is the Internet.

Most people think that insurance policies have a fixed price but this is not the case. There is in fact a minimum price which is charged by the insurance company but brokers are usually free to charge whatever they wish, within reason, over and above this. This is also common practice with comparison websites. The moral therefore is to shop around as many sources as you have time for, to find the best bargain.

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Once you've chosen a good insurer take a look at what you actually need from your policy. If you're mileage is usually fairly low, to see if they give a reduction for people who cover lower distances than the average.

Be realistic about how much your car is worth. If you are all lucky enough to have it written off in an accident the insurance company will obtain an ad up-to-date valuation of a typical car of the same model and mileage, and that is the maximum that they will pay out on so if you have it insured for a higher figure you will just have wasted money.

If you file into a particular driving category; for instance if you have a high no claims bonus, or you are a young driver, or your car is particularly valuable, try searching the Internet for insurance companies that specialise in cover for people with your particular requirements. A policy from a specialist company can often come at a lower premium, or with better benefits, than one from an insurer which covers only run of the mill policies.

All this may sound like a lot of trouble but the fact is that if you follow these guidelines you would almost certainly save yourself money, and possibly a great deal of money, on your next and future car insurance policies.