You'll often here cynical people say "In this world nothing is certain but death and taxes". Unfortunately I fear they may have missed 'Motor Insurance', perhaps because it's too complicated. Finding the right motor insurance can be a lottery and as the question comes up more and more on our forum I figured it was about time I tried to clear the murky waters a little.

You've got three levels of cover to choose from bargain basement, to full cover and legal costs.

Third party is the least you can get away with. It will only pay for damage to a person, property or car involved in a coming together with your vehicle. Any damage to your own car or worse still you, will not be covered by your insurance. Should the worse happen you can only pray that your insurance company can prove you weren't to blame, which will be harder than you think, but if they do the other parties insurance will pay for your car. Third party, fire and theft. As above but if your car gets stolen or set on fire your insurance company will pay out, less excess, which I'll come to later.

Comprehensive is the one to get. Regardless of whose to blame it'll pay for your car and anyone else that is involved. Comprehensive doesn't actually cost that much more because this is the level of cover insurance companies want you to take. Now I know what you are thinking, and don't: insurance companies aren't being nice and offering you the best cover at a low price for your benefit. Oh no. If a case isn't black and white and they can blame both parties ("knock for knock") they obviously get to split the costs 50/50. Not always fair but that's insurance for you.

There are many extras you can take out with your motoring insurance some of which I feel are necessary others are down to the individual.

Protected no claims bonus. Your 'no claims bonus' is literally that: a bonus for not making a claim. You usually get about 30% for your first claim free year and after six years you can get as much as 65%. Now if you're thinking this sounds a little unfair, "what if some crashes into me and it's not my fault", as long as your insurance company proves you weren't to blame, your 'bonus' will stay intact. Unfortunately knock for knock counts as a claim as you're both to blame.

For a few extra quid on your insurance you can protect your 'bonus' but unless you have a full 'bonus' I wouldn't bother. With protection you usually get an allowance of two claims per year and come renewal your 65% reduction should still be available.

Excess. I said I'd get round to this. Excess is the amount you pay towards the cost of any repair. More often than not there will be a compulsory excess, this will vary depending on your age, car and location. You can volunteer an excess which will reduce your annual policy, but don't forget this goes on top of the compulsory excess.

Now the big question, what's it all going to cost? There are many factors involved from what you drive, where you work, where you live, how you drive, your age, sex, the list goes on.

What you drive. Insurance companies class cars in 20 groups. The grouping is based upon performance, price and cost of parts. It's simple really, a Citroen 2CV is Group 1 and a Ferrari F40 group 20.

Where you live. Insurance companies use your post code to decide your risk of accident and theft. So inner city dwellers will be paying more than someone out in the sticks. There's less to hit and fewer car thieves.

Your age. The younger you are the more they'll want from you and the goal posts keep moving. There was a time when people were telling me "wait till you're 25 it'll be cheaper then". Unfortunately as I hurtle towards 30 it doesn't seem to be getting any cheaper, in fact the same people are now saying "when you're 40...".

"Don't lose your temper, don't waste your time arguing over whose fault it is and certainly don't admit any liability, even if it was your fault."

Your occupation. Insurance companies think that the more time you spend at the wheel the more likely you are to have an accident so if you're a salesman you'll pay more. I however think that the more practice you get the better you are, just look at the old dodders that come out on a Sunday. Also if your occupation involves a professional sport or acting, it is presumed you will be ferrying around the likes of David Beckham.

Your history. If you've made hundreds of claims chances are your insurance is going to be through the roof. If you have loads of points for speeding or running red lights, again the insurance company are going to take a dim view.

Where your car is kept. If you do happen to live in an inner city, the chances are you'll have to park on the road. This obviously puts your car at a greater risk of prying eyes. If you have a garage and you're going to use it, tell your insurers, it'll get you a reduction.

How you protect your car. If you have an approved alarm or immobiliser then your insurer should offer you a discount. On higher grouped cars you may find it is a term of the policy. Don't waste your money on a non approved system.

Modifications. Now this is another big question, "what will it cost me in insurance to add...". At the end of the day it's down to the individual insurer but if you make your 316 look like an M3 expect to pay M3 money for insurance. What looks good to you looks good to a car thief.

There are many ways to reduce your policy, try the following: Named driver. Get a quote in your name only as 'any user' policies will always be more expensive as insurers will consider the lowest qualified as the greatest risk. Limited additional drivers, insurers tend to load a policy if there are hundreds of drivers on a policy, so keeping it to a minimum will save your money. Spouse. Adding your spouse, especially if you are male can often reduce the cost of your cover. Limited mileage. As I said before the less you drive the lower the risk (in insurer's eyes) so if you can guarantee you'll only do a few miles per year tell your insurers as it'll get you a discount. This is especially so with regards to Classic cars that you will only get out when the weather is perfect.

Specialists. If you're young, old, drive a sporty car or even if you crash a lot, there will always be an insurer who specialises in you. So check out the back of magazines and shop around. Don't avoid the big players either, on the basis they are mainstream, at the end of the day they can afford the risk, so may be cheaper.

Scams. Don't even bother trying to blag your insurance company, if you lie and they find out they have the right to invalidate your policy. God forbid if they find out mid claim.