Purchasing insurance can be a daunting and laborious task and all too often very expensive, but it needn't be as long as you follow these four easy steps:

Choose your level of cover

The amount of insurance that you need may vary depending on several factors. For example, it might be better to insure an old vehicle with 3rd Party insurance as the premiums on comprehensive insurance for the car might outweigh the advantages of full cover. The amount of insurance you require could also depend on things like the amount of money you owe and own, your assets and how much out-of-pocket cost you could afford.

It may also be worthwhile looking into a combined house and car insurance policy as various insurance companies provide lower premiums for these policies. Some insurers offer discounts on multi-vehicle policies too.

If you are uncertain as to what level of cover you require, it may be best to contact an insurance broker for assistance.

Comparison shop

Shopping around for the best motor insurance deals could save you hundreds of dollars. Numerous websites in the US, UK, Canada, Australia and South Africa provide online insurance quotes and comparison shopping services. If you have a couple of insurance companies in mind, call them directly for a quote or contact a broker to do this for you. The important thing is to get several quotes from different insurance companies.

Once you have your quotes compare the premiums, but don't make your decision solely on this. A car insurance policy may cost less because it offers less cover or has more restrictions. It is also wise to go with an insurance company that has a good record for paying out claims.

If you are considering buying a new car or motorcycle, it may be wise to shop around for insurance quotes before you make your purchase. Premiums differ vastly depending on the make and model of the vehicle. For example, certain car models are more popular with thieves making them a greater risk for insurance companies. Some cars are more expensive to repair and some damage more easily. The amount you will need to pay for insurance may sway you to buy a lower risk vehicle. Even if the price of insuring your new car isn't very important to you, having quotes to return to once you buy your car will help get you covered a lot faster.

Get intimate with the policy details

Understanding the fine print of your insurance policy might save you both money and grief if you should need to claim. Make sure that you understand the terms and cover of the insurance policy you decide to purchase, especially:

• Who and what is insured

• What exclusions and limitations apply

• When the cover starts and ends

• What level of cover is provided

• How much your premium will be

• When and how to claim

If you are unsure about any details of an insurance policy, it is best to ask an insurance broker or agent to explain.

Reassess Your Policy Periodically

It's a good idea to shop around for insurance quotes on a yearly basis, but certain important events in your life might warrant another look at your insurance needs. This could include:

• Getting married or divorced

• Starting a family

• Renting a house or apartment

• Buying a new house or car

• Significant changes to your income

• Retiring

Following these simple but extremely important steps can help you save money and hopefully change your perception of car insurance as being a 'grudge purchase'.