by Rebecca Young

- shop around. With the emergence of the internet searching for the best insurance deal has become infinitely easier. At the click of a button you can search through hundreds of offers. However, just like in the non cyberspace world don't go with the first good package you come across. There is nothing worse than choosing what you thought was a great policy only to come across and even better one the next day.

- prices are often no reflection of quality. If a policy seems like an incredibly good offer it probably wont be. There will invariably be a massive tie-in or penalty clause. However, on the other hand don't assume a policy is great just because it's expensive.

- only buy what you need. There is a tenancy for people to think I need insurance for everything and I need the maximum cover. Some unscrupulous brokers and salesmen will encourage this misconception. For example, you may not need specific cover on your new plasma television because it will probably covered in your buildings and contents insurance. If you live on your own, do you really need to have life insurance? You could end up spending hundreds of pounds more over the course of a year for insurance you'd don't actually need.

- but make sure you are fully covered. Despite the previous point, it is always best to be over insured than underinsured. Thousands of people each year receive a very nasty shock when they make a claim only to be told they aren't covered. Sometimes this can be little more than a learning experience but in other instance the consequences can be much worse.

- don't use your mortgage lender for building and contents. Normally, this will be considerably more than what you can get from an insurance company. Don't think it's only a few pounds a months. Those few pounds can add up to hundreds a year, sometimes even thousands.

- in building and contents insurance remember than the rebuilding costs are not the same as the market value of your house. The rebuilding costs don't take into account the cost of the land or the areas your house is built in. The difference can sometimes be a few thousand pounds but often it can more than 50%.

- full cover doesn't always mean what you think. Don't assume because it says full cover that you are fully covered. What one company classifies as full cover is different to what the next company says it is. Always ensure you read the policy carefully to see what you are actually covered for.

- and finally always read the small print. This may sound like a cliche but it's still of paramount importance. Even large, reputable companies will bury unattractive aspects of their policies in the small print. It's not illegal and some people would even question whether it was immoral. Just like most things in life, insurance should never be taken at face value.