Car Insurance - Tips to Help Lower Your Rates

As car insurance rates continue to rise, more and more consumers are looking for ways to pay less for the same type of coverage. Here are seven of the most common ways insurance companies urge drivers to save on their annual premiums. Be sure to check with your insurance agent to see what other discounts your company may offer:

Downgrade.
Owning a less expensive car can save your insurance carrier thousands in repair costs in the event of a accident -- a savings they are generally happy to pass onto their customers.

Move to the Suburbs.
Living in the city can be dangerous for your car, and insurance carriers know that. Move to a suburban or rural area with less vandalism and theft for lower rates.

Drive Less.
The less you drive, the less you pay in insurance. Why? Simple. If you're not on the road, you can't get in an accident and cause your insurance company money in high cost repairs. Be sure to let your agent know if you drive less than 5,000 or 10,000 miles a year.

Get Married!
Sad, but true, young singles (especially males), pay higher car insurance rates, than their more mature, married counterparts.

Drive Carefully.
Nothing will cause a boost in your insurance rates faster than a poor driving record. Accidents, tickets and DUI's are all reported to your insurance company, leading to a rise in rates with the next bill.

Pay Your Bills Promptly.
Many insurance companies are now considering a customer's "insurance risk score," that is determined by their credit score to determine their individual premium rate.

Ask About Discounts.
Every insurance company offers a variety of drivers discounts including:

-Multi- premium discount (given to people with more than one type of policy with a single company - ie: homeowners, car, life insurance).

-New vehicle safety discount - the newer the car, the more safety features it generally has, which can lower damages costs in the event of an accident

-Anti-theft discount

-Good student discount - this discount is usually offered to honor students in high school and college

-New business discount

-Defensive driving discount - take a defensive driving course and obtain a rates reduction

-Accident-free discount - most insurance carriers offer periodic discounts for every year that you remain accident-free

-Loyalty discount (often given to long-term customers for 10 or more years of service)

-Multi-car discount - the more cars your family insures, the lower each individual premium should be.

Be sure to ask you agent about discounts that may apply to you.