The insurance market is incredibly competitive, particularly when it comes to car insurance. When it comes to shopping for a good deal the competition can make things rather confusing, but it also means that there are some great deals out there, if you can find them.

All the competitiveness has meant that companies are always trying different things to sell their policies. Gone are the days of just paying to have your car insured, there are now a raft of optional extras that can make the cheapest policy offer less good value. All of this can get a bit confusing, but its important to remember the point of car insurance.

First things first, youre going to buy insurance, so work out how much cover you want (forgetting, for the moment, anything else that might be available) the most important thing is deciding what time of cover you want for your car.

So the first thing to do is work out the things that all insurance companies base their policies on. There are many, but the main ones are the number of miles you drive a year, and the experience of the person behind the wheel. They also need to know whether you have off road parking, who else might be driving your car and finally, your address.

Once youve got these details to hand (you have to be as honest as possible otherwise your insurance policy may be void) you can get straight onto the matter of finding the best deal.

You may find, amongst these three or four, that there are all sorts of optional extras available and they can save you a lot of money in other departments. If you havent got breakdown cover, paying for breakdown cover combined with your insurance will be cheaper than buying them separately; the same applies for any servicing you have done on your car. Dont pay for any coverage twice, its a waste of money, and when it comes to things like cover for the contents of a handbag you may find that its covered on your house insurance. Look to combine your spending, and if you think there is an extra that should be included in the main body of the policy, then you may well be right, and you may be able to find another policy which includes it without an extra charge.

A good place to find good optional extras is with intermediaries, rather than direct with the providers. Intermediaries like Auto Direct search a panel of insurance companies for your policy, but also include things like a recovery service themselves.

Getting a great deal is about putting in the legwork and not being distracted by all the bells and whistles. A good policy is one that offers you all the coverage you need for a decent price, if you can squeeze more value out of it by making the most of the optional extras that come at relatively low prices, then do so, but if not, dont be afraid to ask for a policy with no additional details, and no additional costs.