We’re all aware that car insurance prices have increased over the last few years. The reasons for this are many and can make shopping around for the best car insurance deal a real headache. Of course, it is possible to get great car cover, but you need to know the tricks of the trade to get the best possible deal, whether you own a Range Rover or a Polo.

According to the AA and as reported in the Financial Times, the cost of car insurance has sky-rocketed in the last 12 months. In fact, it has risen at seven times the rate of inflation. For the average car motorist this has meant that they are paying 33 per cent more for their car insurance in 2010 than they were in 2009.

For young drivers, the increase was even more pronounced at an incredible 60 per cent. For those who chose to buy third party, fire and theft policies, usually the cheapest option, the cost rose by 72 per cent.

According to Simon Douglas from the AA, these rising costs are down to the increase in compensation claims relating to car accidents, a huge increase in fraudulent claims, rises in the numbers of uninsured drivers and the fall in the value of investments held by insurance companies.

While it may seem like a bleak situation, there are things you can do to get the best insurance premium for your car:

• Approach an appropriate insurance provider. If you have a classic car you may need a provider that specialises in this type of vehicle. If you’re a young person, you should look for companies that offer special deals to young drivers.

• Shop around for the best deals. Don’t simply rely on comparison sites as many insurance providers will offer great deals if you go direct.

• Buy the policy type which suits you best. With the increases to third party insurance you may find that a comprehensive policy now has more value.

• Take advantage of your no claim bonus and protect it whenever possible. Many insurance companies will offer up to 70 per cent off your quote if you have five years or more claims free. It is important to build this up as quickly as possible.

• Buy a car that is cheaper and easier to repair. A car with a smaller engine and good reliability will have cheaper insurance than a gas guzzler.

• Make sure your car has a good alarm system and an immobiliser fitted. If you can afford to get a tracker, then this is looked upon favourably by an insurer.

• Keep your car in a garage or on a driveway if you can.

• Avoid having too many named drivers.

• Experiment with what your premiums will be if you increase your excess. Of course, remember you need to be sure you can afford to pay the excess if you are involved in an accident.

Using these tips, you will be able to save precious pounds on your insurance policy.