HERE are two words to strike terror into the hearts of almost every adult in Britain: car insurance. Have you finished with the sick-bag yet? Are you still hiding behind the settee? Yes, I know, it's scary and bewildering beyond belief.

You see, most people carefully control their day-to-day budgets. We scrimp and save, watch the pennies and ensure we go for the cheaper brand of detergent just so we can save up for children's shoes.

And generally, we do a pretty good job at living within our means. Then, crash bang, wallop, the car needs a repair, an MOT or insurance and it's like you suddenly need to win the lottery to pay for it.

One moment you can be saving £1 by walking down the road to a less expensive barber, and the next you're billed £750 because a spark plug has come loose on the family motor.

The cost of running a car is out of all proportion with everything else. Recently, I told a frustrated Mrs Editor's Chair I couldn't afford some ornamental pebbles to jazz up our front garden.

"But you've just spent £571 on your 12-year-old car," she stormed.

That money was just to ensure it got through its MOT and was fully operational for another year, even though we had to stick a screw in the side to stop a rusted panel falling off. But I'm philosophical about all of these costs, apart from motor insurance which makes me very, very angry.

I've never forgiven a certain building society for the way they treated me several years ago after selling me a protected no-claims policy.

The salesman told me my no-claims bonus would be safe, even if I had two accidents in a year.

About 11 months into the policy, a vandal snapped off my wing mirror, costing me £160. I knew there was an excess of £100 on my insurance, so I claimed back the other £60. After all, my policy was protected and £60 is £60.

I got the cash and renewed the policy. But then disaster struck two months later. I smacked into a wall at a dentist's surgery and had to make my first fault claim in two decades.

The insurers honoured it but then told me they would be banning me from renewing the following year because I'd made two claims within three years.

"But you told me my policy was protected against two claims in a year," I spluttered.

"It is," they told me. "But not with us."

In short, other insurers would honour their promise. I still had a no-claims bonus, but not with my insurers. It was something to do with their underwriters.

In fairness, other firms said they would give me a no-claims discount. Yet, confusingly, I still had to declare my claims to these new companies, even though I was supposed to be protected.

For the last few years, car insurance quotes have ranged from around £400 to £700. Each time, I have had to declare my old claims.

Anyway, last week I had to renew again and was shocked to receive the lowest-ever quote at around £306 for comprehensive cover.

I rang to ask why it was so cheap. The answer was that my two 2001 claims had now come off the system and I was in the clear again.

I should be celebrating saving some cash, but I'm now angrier then ever. What on earth did I pay to protect all those years ago, if I spent the last four years being penalised for my insurance claims?

The only thing these policies appear to insure is that you'll end up confused and out of pocket.