Watch out for these seven car insurance tricks!

Insurers love to try and catch us out in a bid to secure our cash - take heed of these tips and you'll be one step ahead.

Insurance is certainly one those outgoings that we just love to hate. And one of the worst is car insurance. We all know how vital it is, but that doesn't make paying for it sting any less - particularly as premiums seem to rise, even if we have an extra year of claim-free driving under our belts.

And some of the annoyance has to lie with the insurers themselves. With so many providers now flooding the market, all offering slightly different things, it's becoming almost impossible to compare and decide which is the best quote.

Even more irritating are the sneaky tricks employed to persuade us to use them (and part with more of our cash). Here are some to watch out for.

Increased renewal quotes

Renewal quotes arrive on the doorstep purporting to be competitive - and many of us simply accept them.

But if you were to apply as a new customer to the same insurer for a quote, more often than not that quote would be cheaper than your renewal. Aargh.

Never, ever simply accept that inflated renewal premium - spend a little time applying for new quotes (and don't forget to add on your extra year of no-claims discount, if applicable) and chances are you will be able to find equivalent (if not better) cover, for less.

They'll charge you regardless

Second thing to watch out for (if you pay annually) is that carefully worded line in your renewal quote stating that you "don't have to do anything to renew- we will simply take the payment from the credit/debit card you used last year".

I loathe this for many reasons - but mainly because if I take up a policy with another provider and forget to call my insurer, it will charge me regardless. Then I'll be doubly insured which I know will be a nightmare to claim back.

Additionally, I find it maddening that they've had the audacity to store my card details after a one-off transaction a year ago - after all, in this age of security breaches we could all do without our personal financial information being stored by all and sundry. Not to mention that I may not even want to pay by that method this year.

This is why I always call my insurer as soon as I receive that renewal quote and state I "do not know yet if I do want to renew, but regardless I do not wish to pay by this method, so please delete my card details from your system".

I can always call them up with payment details in the unlikely event I decide to renew.

The great direct debit rip-off

If you tend to spread your payments by paying by direct debit, always read the small print.

Insurers hardly ever offer this service for free, and some charge up to a stomach clenching 30% APR for the privilege. Gulp.

A £300 policy would therefore cost you £345 over the year if you paid in installments. Strangely enough they always seem to gloss over this point!

Don't pay this scandalous charge - always try to pay your premium upfront (if necessary a 0% card for new purchases can help spread the cost).

And prepare yourself for next year's premium - £20 squirreled away into a savings account each month adds up to a £240 lump sum this time next year.

Watch that excess

You need to keep your wits about you when searching for quotes, too. Insurers are so desperate to offer one of the cheapest quotes that they hike up voluntary excesses (sometimes to £500+) to reduce the premium shown. Yikes.

Other tricks include removing legal cover, personal accident cover and courtesy cars from their quotes in order to seem cheaper. Add them on and suddenly they're not so competitive....

Now of course this is fine if you don't want these things in the first place. But for those that do, it's worth spending a few minutes checking that every bit of cover you want is included - and only then can you compare quotes.

It ain't over till the fat lady sings...

Don't rest on your laurels once you've selected a quote, either. My car insurance ran out last month and as I was in the process of accepting the best offer, I was amazed to find it had increased by £45.

Closer inspection revealed breakdown cover had been automatically added, regardless of the fact I hadn't requested it. What a scam!

Check, check and check those details again before entering those payment details - and make sure you only pay for the cover you want.

Better is not always..er better

On a slightly different note, while you may think a 5* Defaqto rated policy may be the bees knees, it depends on what you need it for.

The one I chose a while ago, for example, offered insurance terms above and beyond the call of duty in the event of an accident.

But provide cover for two vehicles while I was in the process of selling one? Not on your Nelly.

Always read the small print and make sure the cover offered is the cover you need.

Don't believe the hype

Finally, while we all know women have fewer accidents, don't limit yourself to only applying for quotes from so-called "women only insurers"- they certainly don't always offer the cheapest deals.

Keep your wits about you, always check the small print and make sure you get the best cover for the most competitive price you can.

Good luck!

More: 10 ways to slash that car insurance premium | 5 ways to cut the cost of car hire