The cost of car insurance is predicted to rise 10% this year having shot up 5% between April and June – so it’s worth checking now if you can lock in a cheaper price. This guide explains the basics of car insurance, what to watch out for and reveals how you can slash the cost of cover in six easy steps. If you are under 25 check our Young Driver’s Insurance guide for more.

At its most simple, car insurance covers you if your car is stolen or involved in a road accident. It also protects other road users if you cause damage to their vehicle or property.

The cost of insurance – your premium – is based on how much of a risk insurers perceive you to be. For example, if you are a youngster ready to hit the highway after just passing your test, or you have had more than a prang or two, you will pay more.

However, if you can prove you are not a risk by keeping accident-free and storing your car safely, you will pay much less.