Not all motor insurance policies are the same. To meet the individual needs of customers, insurers offer a wide variety of products. By shopping around, you will have the best chance of finding a policy with your preferred combination of price, excess and requirements relating to use and repairs.

As a general rule, the lower the premium, the more restrictions may apply to what is covered, how much you would be paid in the event of a claim, and what your options may be in the event of a claim. For instance, low-priced policies might come with restrictions as to where you can send your vehicle for repair or whether new or reconditioned parts are used. More expensive policies may allow more flexibility in your choice of repairers, etc.

The following are important things to consider when buying a motor insurance policy:

• Are there restrictions on who can drive the vehicle?
• What extra cover can you buy?
• Does the policy meet the requirements of your bank or finance company if you are buying the vehicle on hire purchase or a car loan scheme?
• How much excess will you be required to pay should you need to make a claim?
• Does the policy require you to take your vehicle to an Independent Damage Assessment Centre (Idac) for damage assessment?
• Does the policy have restrictions on who is permitted to repair the vehicle?
• Will reconditioned parts be used for repairs?