Don’t Pay too Much for Auto InsuranceDid you know that all auto insurance premiums are based on statistics?  The statistics associated with theft, accidents, and age as well as other considerations come together to create your auto insurance premium.

Auto Insurance Cost:  What Affects the Price

DeductibleWhen you have a low deductible you are going to pay more for your car insurance.  The reason is that the company is taking on a bigger risk because they have to pay out more in the event of an accident or theft.  Increasing your deductible can lower your auto insurance premium by 10% a year.

Crime rateIf you live in an area with a very high crime rate, specifically car theft, you may find that your auto insurance premiums are very high.  If you are considering moving, you should check the crime rate and premium changes before you buy.

Garage Parking You can see a slight discount if you park your vehicle in a garage instead of on the street.

Low MileageAsk for a discount if you do not drive much.  If you drive under 10,000 miles per year you may be eligible for the discount.

Shop AroundShopping around will allow you to compare rate quotes and get the best deal for your insurance needs.

Insurance Consolidation Most insurance companies will give you significant discounts if you have all your insurance policies with the same company.

Driving CoursesMost companies are now reducing the policy for people who take a driver education course. This mainly applies to new drivers. Insurance companies like to know that you are driver educated and therefore statistically have less liklihood of an accident.

Good Grades Today many car insurance companies are now offering discounts for higher than average grade students.

No Claims BonusYou should ask about a no claims bonus as today most insurance companies will reduce the premium every year if you don't make a claim. You can see a reduction every year you don’t have a claim.

Vehicle Choice. Higher profile cars have higher premiums.  If you want a sports car or a car that is known to be stolen a lot, you are going to pay more than you would if you chose a lower profile vehicle.