WITH two major insurers - Guardian PMPA and PremierDirect dropping their motor insurance rates by between four to 14 per cent (depending on where you live) it is probably just a matter of time before the other major insurers follow suit.

Price continues to be the single largest factor which influences most drivers in their choice of insurer, but motor insurance brokers are quick to remind motorists that they need to check other factors before opting for any policy strictly on price.

The single most important clause (other than price) that should be checked, and compared with other policies, is the effect that a claim will have on your no claims bonus. Most insurers now allow windscreen claims without loss of no claims bonus, but they apply a claims limit (usually £200-£400). Before the onset of fierce competition a single accident or damage claim would also wipe out the motorists no claims bonus and result in a significant premium rise. Today, some insurance companies allow up to three claims worth a few thousand pounds in total before the loss of the no claims bonus. Others reduce the bonus by a third or half, rather than abolish it, and all in an effort to hold onto the customer. The other clause that should be checked is the compulsory excess that you will have to pay before any damage or theft claim is met.

Many motorists may insist that they are only interested in low premiums and the bonus clauses, but features like free breakdown service and recovery (plus overnight expenses), new car for old replacement, legal defence cover, driver death benefits, emergency medical expenses in the event of an accident may justify a slightly higher premium.