* Be sure to compare prices
Get multiple quotes from different insurance companies. You can easily find differences of 15 to 20% for the same coverage, so it pays to shop around. But be aware, the lowest price does not always mean the best deal, so check into the companies reputation for paying claims before you purchase a policy.
* Rates vary depending upon the type of car
Insurance costs vary depending on car type. For example, an $80,000 high performance sports car will cost more to insure than an economy sedan.
* Age and current value of car
Obviously, if you just purchased a new car, you will probably want to have full insurance coverage to protect your investment. However, if your car is many years old and doesn't have much of a cash value, you may be better off by dropping any extra coverage, while retaining only the required liability insurance. In most cases, you can trim hundreds of dollars off your annual insurance premiums.
* Accept a higher deductible
Most car insurance companies use deductibles to keep policy costs down. The deductible is the amount you pay towards any damage before your car insurance policy pays. In other words, if your policy has a $200 deductible and you suffer damages in the amount of $500, you would pay the first $200, while the insurance company would pay the remaining $300.
When shopping for car insurance, be sure to look at the premium prices for coverage with various deductible amounts. You may find that changing your deductible from $200 to $500 may trim your premiums by 20% or more.
* Multiple policy discount
Many insurance companies offer a discount if you purchase more than one policy. For example, if you have a policy on your car as well as a policy on your spouses car, you may qualify for a discount. Be sure to check with your insurance agent - it could save you money!
* Low usage/mileage discounts
As fuel costs increase, more and more people are either working closer to home or maybe even working from home. Increased costs also tend to reduce unnecessary trips and encourage car-pooling. This can mean that you will be driving substantially fewer miles every year, so you will probably qualify for a low usage/mileage discount
* Good driving record
A good driving record can reduces your car insurance costs. By driving carefully, avoiding accidents and traffic tickets, your insurance company may offer you a "safe driver" discount rate.
* Ride on your parents policy
If you live at home with your parents, or your a qualifying student, it may be possible that you can purchase car insurance by being added on to your parents policy. They will likely then qualify for the multiple policy discount and you will get a lower premium than if you purchased a separate policy on your own.
