AA Insurance reports that the average comprehensive policy costs £464 this month, up more than 4 per cent over the last three months, and up 10 per cent on the same time last year.

But drivers can still save money by asking for a range of quotes. The AA figures are based on typical prices from the top 37 companies, including direct insurers. The average of the three lowest quotes for a comprehensive policy is £290, a saving of £174.

A 21 year-old female secretary from Manchester would pay £931 on average to insure her Renault 5 GTS for third party, fire and theft. But after shopping around, the price is just £478, a saving of nearly 50%.

A 44 year-old male teacher from Strathclyde pays £185 for comprehensive cover for his Ford Fiesta Popular. That drops to £123 if he accepts one of the lowest quotes.

Insurers say that motor insurance is no moneyspinner at current prices. They claim that they make an overall loss of 20p for every £1 of premium that they earn. So further premium increases are probably on the cards.

Top tips for drivers with policies coming up for renewal:

• ask for quotes from at least one insurance broker and more than one direct or telephone-based insurance company.
• don't be afraid to badger your current insurer for a lower renewal quote
• check for discounts you might receive by virtue of being a member of a union, car club or other society
• ask for quotes from companies trying to break into the insurance market, who tend to advertise widely. They'll often keep prices low in order to win business.