10 Ways to Lower Your Auto Insurance

Nowadays, auto insurance is really expensive. A typical insurance policy can cost a few hundred dollars to a few thousand dollars a year. And the insurance rates you pay are hugely dependent on the insurance company or agent, your age, your car type, your driving record, and even the area you reside in!

You should never go without auto insurance though, despite the costs. Almost all the states require you to protect yourself with a minimum amount of liability coverage. Naturally, the bare minimum is not adequate enough for the average car owner. And as you add in additional coverage for your car, you realize that you will be paying a fairly large sum annually.

So, understanding auto insurance can actually help you to decide on a suitable insurance policy that won't vacuum clean your wallet! Here, we have gathered 10 of the best tips for lowering your auto insurance, by as much as 40%!

Always compare insurance policies. There are states which regulate auto insurance rates, but the insurance premiums can vary by hundreds of dollars for the exact same coverage. It is definitely worthwhile to shop around. The first thing you can do is to check with your state insurance department. They often provide information about the coverage you need, as well as sample rates from the biggest companies. You can also ask your friends or look up the yellow pages. Checking consumer guides and asking insurance agents can pay off as well. You can easily find out the price range for your insurance policy, as well as discover the lowest prices in town.

However, you should not be shopping based on price along. The insurance company should provide good service at the best price. Excellent personal service is available as well, and they provide added conveniences, although they cost a fair bit more. Ask the company how you can lower your costs, and also check their financial ratings. The rule of thumb is always to get three price quotes from three different companies, and pick the one with the best value.

It can also be a good idea to increase your deductibles. When you file a claim, the deductible is the amount you pay before the insurance company pays for the rest of the damage. A higher deductible on collision and comprehensive coverage can lead to a much lower premium. For example, increasing your deductible from $200 to $400 can reduce your premiums by up to 25%. However, you must ensure that you have the financial resources to handle the largest deductible when the time comes.

Remove certain types of coverage from your policy. Almost all the states require liability coverage for your car, but the rest of the coverage is probably dispensable. However, you do not want to be underinsured if you're in an accident, so it isn't advisable to remove all of your additional coverage. Optional coverage includes medical payments, uninsured motorist, collision, and comprehensive coverage.

Drop collision and comprehensive coverage for older cars. If you drive an older car that's worth less than $2,000, it's probably more cost-effective to drop collision and comprehensive coverage since you'll probably pay more for the coverage than you'll collect for a claim. You can find out the worth of your car by asking auto dealers and banks.

Make sure your credit report looks good. Car insurance companies often look at your credit history as there is a correlation between the risk to the company and your credit history. If you pay your bills on time and maintain a good credit history, you can enjoy lower insurance rates.

Drive less. Insurance companies often offer low-mileage discounts to motorists who drive less than a predetermined number of miles each year. You can use public transportation more often, car-pool with friends, and take the train or a plane instead of driving to another state. And you'll save on more than your coverage as you'll need to spend less on gasoline (of which prices are incredibly high).

Maintain a clean driving record. The company will give you a price break and you can save on your insurance policy after a specified period of a clean driving record. This means that you have no accidents, no serious driving violations etc, during this period of time. The simplest and surefire way to qualify for this discount is to drive carefully and defensively all the time.

Choose a low-profile car. Insurance rates vary among difference models of vehicles. Generally, sports cars and high-performance cars tend to cost more to insure, mainly because they represent more risk of theft and the drivers are often the people who drive more recklessly. Newer cars will cost more to repair or replace than older ones, so naturally they can more to insure. Low-risk vehicles include station wagons and sedans.

Ask about safety and security discounts. The insurance companies sometimes offer discounts on your insurance if your car is equipped with the following: anti-lock brakes, air bags, automatic seat belts, car alarms, tracking systems. These reduce the injury risk to you, as well as the chances of your car being vandalized or stolen.

Finally, ask about other discounts. You may receive a discount if you buy more than one type of insurance from the same company or if you insure multiple cars under the same policy or company. You may also receive discounts for taking a defensive driving course, staying with the same company for a few years, being a driver over 50, good-student discounts, and being an AAA member. If you already have adequate health insurance, you can also eliminate paying for duplicate medical coverage, thus lowering your personal injury protection costs by a substantial amount.

Pete Lance is the founder of http://www.USGasTracker.org, a premier company which helps the consumer save money on gasoline. Thousands of gas stations across the nation are tracked daily to guarantee the lowest prices on gasoline anywhere in the United States.

In The News:

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table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.kansascity.com/105/story/837432.htmlcid=1256707580ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNHAn3uUYty0p15eEX2iQTaZMmZEaAMissouri unemployment binsurance/b fund headed toward insolvency/abrfont size=-1font color=#6f6f6fKansas City Star,nbsp;MOnbsp;-/font nobr10 hours ago/nobr/fontbrfont size=-1By DIANE STAFFORD Missouri’s unemployment binsurance/b fund is being pushed toward insolvency — again — by the wobbling economy. The National Employment Law b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.washingtonpost.com/wp-dyn/content/article/2008/10/10/AR2008101000055.htmlcid=1255992539ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNE2Nprud3bdrwjkYy1vSuEr7HIlugimg src=http://news.google.com/news?imgefp=4AK35zxVBjoJimgurl=media3.washingtonpost.com/wp-dyn/content/photo/2008/10/10/PH2008101000057.jpg width=80 height=56 alt= border=1brfont size=-2Washington Post/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.telegraph.co.uk/news/worldnews/asia/japan/3179580/Japan-in-desperate-effort-to-halt-its-own-downward-economic-spiral.htmlcid=1255992539ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNGPq_fnjkWJ73qVto7tl0SYaUpegwJapan in desperate effort to halt its own downward economic spiral/abrfont size=-1font color=#6f6f6fTelegraph.co.uk,nbsp;United Kingdomnbsp;-/font nobr19 hours ago/nobr/fontbrfont size=-1Testimony to this were the nation#39;s first direct victims: the 1000 employees of Yamato Life bInsurance/b, as well as its 170000 policy holders, b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.ft.com/cms/s/179be274-96f3-11dd-8cc4-000077b07658.htmlcid=1255992539ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNFWfgf35M-lMDjFsY4ufalzecySHQYamato files for bankruptcy/a font size=-1 color=#6f6f6fnobrFinancial Times/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.hindu.com/thehindu/holnus/000200810101676.htmcid=1255992539ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNHvba5KamluBSaM5kQ7zG43wvutHgJapan#39;s Yamato Life bInsurance/b files for bankruptcy/a font size=-1 color=#6f6f6fnobrHindu/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.thehindubusinessline.com/blnus/10101205.htmcid=1255992539ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNHO0Y5wXKDTfFoU5yGTgh5PQIUbzgJapanese binsurance/b co Yamoto collapses; files for bankruptcy/a font size=-1 color=#6f6f6fnobrHindu Business Line/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.yomiuri.co.jp/dy/business/20081011TDY01302.htmcid=1255992539ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNEebqtPBuayif0cR5tU86mAICLgZgnobrThe Daily Yomiuri/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://online.wsj.com/article/SB122363610847322687.html%3Fmod%3Dgooglenews_wsjcid=1255992539ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNE98saECFMnQbZ7_5_A6o223aBTOAnobrWall Street Journal/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1255992539hl=ennobrall 382 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://time.com/time/business/article/0,8599,1849023,00.html%3Fimw%3DYcid=1255996111ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNHFNFcwK5ur8GSu18attoywyz9p1QDespite the Turmoil, bInsurance/b Companies Appear Safe/abrfont size=-1font color=#6f6f6fTIMEnbsp;-/font nobrOct 10, 2008/nobr/fontbrfont size=-1Consumers could be forgiven for being jittery this week when news came that MetLife and The Hartford, two well known binsurance/b giants, had experienced huge b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.forbes.com/feeds/ap/2008/10/10/ap5536520.htmlcid=1255996111ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNFDtZFNv7R7vcDpeAi1RZ0wHQoI-wSector Snap: bInsurance/b companies fluctuate/a font size=-1 color=#6f6f6fnobrForbes/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.nytimes.com/2008/10/10/business/10place.htmlcid=1255996111ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNHb_HwsIlxHf9WjsMCtSAieOiW9uwMarket Place bInsurance/b Industry Joins Banking Giants on the Hot Seat/a font size=-1 color=#6f6f6fnobrNew York Times/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://online.barrons.com/article/SB122350252742116839.html%3Fmod%3Dgooglenews_barronscid=1255996111ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNEqdx5wiRwnVyz0Kf1I1Sbv0kTIKQConsider Staking a Claim in Allstate/a font size=-1 color=#6f6f6fnobrBarron's/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.straitstimes.com/Breaking%252BNews/Money/Story/STIStory_288533.htmlcid=1255996111ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNEwsl2y3IZW1Pzxp95PvIPEsvBACgnobrStraits Times/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.forbes.com/feeds/ap/2008/10/09/ap5532725.htmlcid=1255996111ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNEgJmoCyDyuY0_6ZsHJ20GZ-tIxuAnobrForbes/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1255996111hl=ennobrall 49 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.modbee.com/24hour/politics/story/460608.htmlcid=1256842309ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNFlaCsBMNYL55WZDyYBQ1Rl_ssIuAimg src=http://news.google.com/news?imgefp=O-VCHEPmKGMJimgurl=media.modbee.com/smedia/2008/10/10/13/USNEWSFLOODPLAINS1BL.embedded.prod_affiliate.11.jpg width=80 height=53 alt= border=1brfont size=-2Modesto Bee/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.courant.com/news/opinion/editorials/hc-miner1012.artoct12,0,2496392.storycid=1256842309ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNGA5-j9l3kXUqgD5wHX8uBCJIj3XwHow To Keep Flood Bailouts At Bay/abrfont size=-1font color=#6f6f6fHartford Courant,nbsp;United Statesnbsp;-/font nobr7 hours ago/nobr/fontbrfont size=-1By LAURA WILDMAN AND MARGARET MINER The National Flood bInsurance/b Program was established to help communities afford the cost of insuring against inevitable b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bellinghamherald.com/255/story/601572.htmlcid=1256842309ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNGSOveu1V9llZok1iHScCYv8kmYjgSpecies ruling could slow development along Nooksack/a font size=-1 color=#6f6f6fnobrBellingham Herald/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1256842309hl=ennobrall 17 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.nytimes.com/2008/10/11/business/11credit.html%3Femcid=1256028374ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNFXKxktOJviGDSb9XAKWkbiHBwSlwimg src=http://news.google.com/news?imgefp=7I1jyFQrzekJimgurl=graphics8.nytimes.com/images/2008/10/11/business/11lehman.190.jpg width=58 height=80 alt= border=1brfont size=-2New York Times/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.nytimes.com/2008/10/11/business/11credit.html%3Femcid=1256028374ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNFXKxktOJviGDSb9XAKWkbiHBwSlwbInsurance/b on Lehman Debt Is the Industry’s Next Test/abrfont size=-1font color=#6f6f6fNew York Times,nbsp;United Statesnbsp;-/font nobr21 hours ago/nobr/fontbrfont size=-1David A. Paterson of New York, left, and Eric R. Dinallo, the binsurance/b regulator, want credit-default swaps regulated. Nearly three weeks after the Wall b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.globalresearch.ca/index.php%3Fcontext%3Dva%26aid%3D10535cid=1256028374ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNFFRZF3fT0b0V_mmGFgPxOqLgR1AgThe Next Derivatives Bloodbath: bInsurance/b Companies and Auto Makers/a font size=-1 color=#6f6f6fnobrCenter for Research on Globalization/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.venturacountystar.com/news/2008/oct/12/unregulated-swaps-seen-as-big-factor-in-wall/cid=1256028374ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNHXOvXde_G5noURJT4YuibiOCkxcAUnregulated swaps seen as big factor in Wall Street collapse/a font size=-1 color=#6f6f6fnobrVentura County Star/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.forbes.com/business/2008/10/10/lehman-bonds-banking-biz-wall-cx_lm_1010auction.htmlcid=1256028374ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNGiMKscL7H6K4ImOiD57N03_dv_DALehman Auction Leaves Cloudy Picture For Banks/a font size=-1 color=#6f6f6fnobrForbes/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.independent.co.uk/news/business/news/traders-worst-fears-realised-at-lehmans-auction-957953.htmlcid=1256028374ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNGzvh3cnuRzy5GaL0oDlqDkNCTSSAnobrIndependent/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.todaysfinancialnews.com/investment-strategies/credit-default-swaps-a-blind-date-goes-wild-4718.htmlcid=1256028374ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNHaAR0LSZ5qEgGW9fRgerYpRElD8AnobrTodays Financial News/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1256028374hl=ennobrall 234 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.wwj.com/Michigan-Bank-Shutdown/3117833cid=1256248304ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNHL3wqzPkSEQ084ndV9ysZWn9hK9Qimg src=http://news.google.com/news?imgefp=yqdDfITJELQJimgurl=imgsrv.wwj.com/image/DbGraphic/200810/1084888.jpg width=80 height=65 alt= border=1brfont size=-2WWJ/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.thestreet.com/story/10441964/1/two-more-us-banks-fail.html%3Fpuc%3Dgooglen%26cm_ven%3DGOOGLEN%26cm_cat%3DFREE%26cm_ite%3DNAcid=1256248304ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNHiVCI1mJyCyOv_Tizn0X19mM3SdgTwo More US Banks Fail/abrfont size=-1font color=#6f6f6fTheStreet.comnbsp;-/font nobr22 hours ago/nobr/fontbrfont size=-1The Michigan Office of Financial and bInsurance/b Regulation shut down Main Street Bank of Northville, Mich., and the Federal Deposit bInsurance/b Corporation was b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601087%26sid%3DaqNGxkgoO5Hc%26refer%3Dhomecid=1256248304ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNEfRverRMNlBij9sKW1o4aQ_zpZWgIllinois, Michigan Banks Shut by Regulators; Toll Climbs to 15/a font size=-1 color=#6f6f6fnobrBloomberg/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.chicagotribune.com/business/chi-sat-meridian-bank-oct11,0,4556722.storycid=1256248304ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNHyhKeKgoURZJh-iYbdRJbtjQjR3QMeridian Bank is closed by regulators/a font size=-1 color=#6f6f6fnobrChicago Tribune/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.freep.com/article/20081011/BUSINESS06/810110303/1019/BUSINESS06cid=1256248304ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNGiG6xOQYxiD_Mbp_QAagRXgL05ogRegulators shut Main St. Bank/a font size=-1 color=#6f6f6fnobrDetroit Free Press/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.reuters.com/article/ousiv/idUSTRE49995320081011cid=1256248304ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNGZVTOxj26YV16VoYnT1K6vwYNo_wnobrReuters/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.thepeninsulaqatar.com/Display_news.asp%3Fsection%3DBusiness_News%26subsection%3Dmarket%2Bnews%26month%3DOctober2008%26file%3DBusiness_News2008101283659.xmlcid=1256248304ei=FgfySKKTEaTe6AO9rrGtBQusg=AFQjCNEZSwsFsxcdEFuZS60SRKfJ3rN-jAnobrPeninsula On-line/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1256248304hl=ennobrall 93 news articles/nobr/a/font/div/font/td/tr/table
insurance - Google News

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