This law was introduced to cut down on the estimated 1 million-plus uninsured British drivers on the road in the UK. Insurance premiums are rising every year due to the increase in claims from accidents involving drivers with no insurance at all, not even 3rd-party. This has resulted in a sharp increase in premiums.

Here's an interesting fact: many UK insurance companies will not insure a foreign manufactured car. This should be kept in mind if you're thinking of importing one or buying an imported car. You might want to secure the offer of a policy before you buy your vehicle.

Companies will offer a no-claims discount if you've not made a claim within the previous three years. You will have to submit proof of this eligibility for this discount. It's also only available to drivers who had no claims within the UK; abroad doesn't count.

Here are the types of cars that you will need to find a specialist insurer for. You'll also need to show that they are suitable for British roads. This is to stop people taking unsafe or modified vehicles on the road which are more likely to be involved in accidents:

• Collector's car;
• Vintage (i.e. really old!);
• Kit car;
• A modified or customised one;
• An import;
• A car with an expensive paint job.

Finding cheap insurance is best done by comparing and contrasting the offers of various high street and specialist, smaller providers. In the 21st century, online is the way to go. You can fillet various offers while sipping your mug of cocoa. Quite a lot of the sites you'll find are affiliates of the main insurer.

You just fill out one form and you get quotes from a range of companies. There's a price point above which you'll be getting a quality product. It's a smart move to read the exclusions and the fine print. An insurer could theoretically offer you a quote of 50 quid and simply exclude just about any real-life situation in which you might conceivably need to make a claim!