You get what you pay for, frugal observers will no doubt admonish - and yet as true as that is, it does not detract from the simple fact that personal insurance policies need to reflect personal circumstances. A vast array of factors should therefore be taken into consideration when selecting your policy - not so much with a view to finding cheap car insurance as simply in order to make sure you buy the product that's best suited to you.

The first and most obvious choice you'll need to make is deciding what your premium is going to cover - you or your vehicle. If you opt simply to protect yourself then whenever anyone else gets behind the wheel of your vehicle - without you on board as passenger, that is - it will cease to be protected. You therefore need to weigh up how likely it is that relatives, friends or colleagues will need to commandeer your beloved car. As ever, though, there's a flipside to the coin - because if you insure the vehicle rather than yourself then you'll need to take out individual policies for each car you own. And that can become expensive, especially if you live in a rural area and own a number of family cars.

Location also has a bearing on the next consideration - or rather series of considerations - as once you know what it is you're insuring, you'll still need to decide under what circumstances it will require protection.

Again this will depend entirely on your personal situation, and as ever if you want to maximum your savings you'll have to take some calculated risks. The most comprehensive policies offer such features as roadside repairs; recoveries to a local garage for your vehicle and up to seven passengers; and even paid-for onward travel arrangements such as train tickets or a hire car. No doubt they all sound great - but do you really need them? Possibly yes, if you live in the middle of nowhere and ferry your entire family around on a daily basis. But probably not if you're a single man living in London who rarely drives and is never more than a few minutes away from a local garage.

Finally, as with any purchase, don't forget the need to factor in a healthy dose of scepticism. Clearly no provider will ever admit to offering a shoddy service, but the simple fact is that not every insurer will have the infrastructure, professional expertise and strategic cover that AA Breakdown offers. Their customers aren't just paying for a flashy marketing campaign, they're also paying for membership to the most comprehensive breakdown network in the country. And if you scour the web looking solely at price then that's peace of mind you can forget about.