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Natalie Lewis, 24, a customer-marketing manager from Cardiff, used this tactic to build up a no-claims bonus, which in turn enabled her to find cheaper cover when she bought her first individual policy last year.

She said: “I learnt to drive in my mother’s car, a Peugeot 206, and was a named driver on her Direct Line policy throughout university. It was a lot cheaper than taking out a policy in my own name.”

During her first and second years at Reading University, Lewis only used her mum’s car during the holidays. However, in her third year, her parents gave her the car to take to university.

“When I looked into the cost of insuring myself individually, my clean claims history meant Direct Line would insure me for under £300 a year.

“I have since changed my car to a Mini Cooper, but even that only added about £30 a year to the cost.”

Building up a good record is not the only way to cut motor insurance costs, though.

Buying cover online is generally cheaper than doing it over the phone due to the incentives offered by insurers keen to push more customers onto the internet. Churchill, for example, offers an online discount of up to 15% on motor policies.

You can also shave up to 25% off your premiums by agreeing to pay a higher excess on any claims, while Direct Line offers up to 35% off for motorists who take the optional Pass Plus advanced driving test.

A 18-year-old male student at Birmingham University, living in postcode B12, would be quoted an astonishing £9,613 a year for a Peugeot 106 1.4-litre by Norwich Union, Moneysupermarket said. The AA, on the other hand, would charge “only” £6,537.

For a girl the picture is only slightly better. Norwich Union, again the most expensive, would charge £7,690, compared with £3,535 from Swinton.

Taking measures to make your vehicle more secure, such as fitting a state-of-the-art alarm, will help to deter thieves as well as bring your motor cover costs down.

And it is worth ensuring you are only paying for the cover you need. If, for example, you do not need a courtesy car should yours break down, there is no point paying extra for the service.

Finally, even if you shopped around for the lowest quote when you took your cover out, it is still a good idea to do the same when your policy comes up for renewal as many insurers raise the price once they have tempted you through the door.

The Association of British Insurers claims that the average driver can slash their premiums by more than a third just by comparing five companies.

This does not have to mean switching insurers, though. You will often find your current firm will match the lowest quote you have received when challenged.

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