After so many experts have warned us that the cost of online car insurance is on the rise, what's happened? It has been given! Basically it was brought about by the influx of online shopping.

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 month of last year, drivers over the age of 65 have seen their average premium go downhill by 4.5% from AUD $342 to $347. It's most surprising when the huge differences in premiums are very much visible among providers. A figure difference of around 40% between the most expensive and the cheapest are well very commonplace.

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 many readers will be amazed at who sells the most 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, one of the most renowned name, only managed one top spot.

This is down to the marketing strategies of the big brand names. They have ben promoting and building up their client base vigorously with low prices and massive ads and then gradually increase the price as the hype dies down. They are clearly relying on apathy and brand loyalty to keep their clients. And with 50% automatically renewing, it works!

When you decide to shop around, be cautious and vigilant. A cheap or rock bottom price is not everything. Certain policies have very enticing low priced offers but rather 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 comprehensive? 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 finally decide which to choose, it's wise to consider all these factors.

But reverting back to price, if you think prices are cheapest over the internet, you're definitely correct! Internet quotes are typically 10%-20% cheaper than over the telephone quotes.

When shopping online, most people search for the cheapest quote and then read the details about the cheapest policy to check out that they provide the cover that they 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 online car insurance”.

But please remember, when renewal time comes around go shopping again. Never opt for auto-renewal! 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.

Learn more and get your Online Car Insurance Quotes today.

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