When it comes to car insurance, many consumers have no idea what insurers look at to come up with the almighty premium amount. And believe it or not, insurers don't pull your auto insurance rates out of thin air. To help you secure the lowest possible insurance rate, it's important to learn about the factors that could be affecting your premium, and how use those factors to tip the scale in your favor!



Comparison Shop.

It is pretty much understood that if you have a good driving record and own a safer car, your premium should remain low or start to decrease. Plus, with some companies now charging lower rates, increased competition means better auto insurance rates for you! Take advantage of online marketing services to find the best car insurance rates from competing insurers.

Find Out What Your Insurance Will Cost Before You Buy That Fancy New Car

Auto insurance companies typically charge more for cars that are expensive to repair or don't fare well in accidents. So before you drive off that lot, make sure your new car is considered safe, and relatively cheap and easy to repair by your insurer. This will help minimize risk for both of you!

Ask Your Insurance Agent for Possible Discounts

These cost-savers can lower your insurance premiums more than you might think:

- Combining two or more cars on one auto insurance policy

- Buying a car with airbags or other safety equipment

- Installing anti-theft devices in your vehicle

- Completing a driver's education course

- Insuring your home and auto with the same insurer

- Applying for a mature driver discount (for those between 50 and 65)

- Getting good grades (for students under 25)

Take the Highest Deductible You Can Afford

Your deductible is the amount you pay out-of-pocket, in case of a claim, before your insurance company starts paying its share. The higher you're deductible, the lower your premium, it's as simple as that. Just be sure you're able to absorb a larger portion of your loss in case of an accident.

Improve Your Driving Record

The more tickets and accidents you have, the more your auto insurance costs. So drive cautiously, improve your motor vehicle record, and inform your auto insurance company of the change. They'll reclassify you as a safer driver, and lower your auto insurance rates in the process!

Consider Dropping Comprehensive and/or Collision Coverage if You Drive an Older Car

Physical damage coverage's like these reimburse you for damages to your own car. But if the vehicle you drive is several years old, or worth less than $1,000, it may not be worth much anyway. Dropping such unnecessary coverage can really save you money.

Review your policy regularly.

It's important to keep your coverage current and updated. Your auto insurance rates may fluctuate due to:

1. Adding or removing a driver from your auto insurance policy

2. Replacing an older vehicle with a newer one

3. Adding or removing a vehicle from your policy

4. Increasing or decreasing the number of miles you drive annually

So the best advice I can give to you is for you to talk to your insurance agent if you encounter any of these situations. Under the right circumstances, you'll reduce the impact on your wallet, and walk away a few dollars in your pocket! Always take the extra time and shop around. It doesn't cost you a thing but time to compare car insurance companies.