Cheaper by the Dozen

There are about a dozen things you can do in order to lower the amount you pay for your auto insurance premiums. Just about everyone complains about the amount of money they pay for automobile insurance, and since the average American is paying a few hundred bucks a year for insurance--it's definitely worth the time and effort to learn a few tips for lowering your insurance. While you can't drive safely (or legally for that matter!) without car insurance, there are actions you can take right now in order to help reduce your annual insurance premium.

1) Increase Your Deductibles.

One sure fire way to get a lower car insurance premium is to increase your deductible. The deductible is the amount of money you are expected to pay if you must submit a claim under your insurance. If you have comprehensive and collision deductibles set at $250 each, try raising them to $500, or maybe even $1000. You will likely see a decrease in annual premium of about 10 percent or more , but if you decide to raise your deductible to lower your premium, be sure you can come up with the amount of your deductible should an accident occur.

2) Go Shopping!

Sometime near the renewal of your automobile insurance policy, you should take some time to get quotes from a few other insurance companies. It's possible that you can get the same exact amount of insurance coverage on your vehicle from a different insurance company. Sometimes you can save a couple hundred bucks just moving to a new insurance company!

3) Stay Home More

There are discounts for infrequent drivers with most insurers. This is because you are on the road less, and pose less risk to the insurers. If you are a commuter, maybe you could car pool several times a week, or use public transportation occasionally to reduce the number of miles you drive per year.

4) Increase your Safety

Most car insurers offer an accident-free discount, or a discount for "safe" drivers. Keep or get a clean driving record for about three years and you'll likely qualify for this discount. Take a defensive driving course, which will automatically entitle you for a discount.

5) Pay your Bills on Time

Whether it makes sense or not, the credit history is playing a role in the amount people pay in car insurance premiums. Pay your bills on time in order to maintain (or get) a higher credit rating. Not only will you save on your car insurance premiums, but you will also reap the benefits of having good credit (lower interest rates on loans, ability to obtain credit, etc!)

6) Don't have a Business Car

Business vehicles pay more in car insurance premiums than vehicles used for pleasure. If possible, don't use your vehicle for business related driving.

7) Use a Garage

Statistics have shown that vehicles that are parked inside a garage are less likely to be stolen or vandalized. Some insurance companies may even provide a discount if you have a garage to park your car in.

8) Install Anti-theft Devices

Many cars come equipped with several safety and anti-theft devices that automatically reduce your car insurance premiums. There are some devices you can have installed in order to help reduce your rate, as well, including automatic seat belts, anti-lock brake system, and airbags. To reduce the risk of theft and to qualify for discounts, have an alarm system installed or use a tracking system.

9) Insure Everything Under One Company

Almost every insurance company can offer you a discount for having multiple lines of insurance. This means if you have more than one vehicle insured with the same company, you receive a discount. It means if you insure your home and camper with the same company, you qualify for a discount.

10) Move Far, Far Away

Maybe not far away, but if you move into a rural community from an urban area, you will likely receive a lower insurance premium. Rural communities statistically experience lower rates of crime and have less traffic than urban areas, so drivers in rural areas receive lower premiums as they pose less of a risk.

11) Buy a Family Vehicle

If you're driving around in a fancy sports car, you're going to pay more money on your insurance than someone who owns a wagon or sedan. High performance and sports vehicles are the prime targets for theft and vandalism, and you will pay higher amounts because statistics show that people who drive sports cars tend to drive them faster than people who drive station wagons.

12) Triple A and More

If you are a triple A member, you will likely receive a discount on your car insurance premium. Also, car insurance companies sometimes offer a variety of discounts that you may qualify for- just call and ask them the type of discounts they offer. Some offer discounts for student drivers who have all "A's" on their report cards!