How do you save money on your auto insurance quote? That is the #1 question that people ask when it comes to buying insurance for their automobiles. Auto insurance companies use proprietary formulas to determine auto insurance quotes, but the overriding variable in determining the rates is you – the person being insured.

If you want to get the lowest auto insurance quote available, here are some cost saving steps that will definitely help you.

1. Don’t drive as much

Many auto insurance companies will give you a discount if you drive less than 7,500 miles annually. Now 7,500 miles may not sound like a lot, and it may not be if you live in more rural areas. But if you live in a city, taking advantage of public transportation or carpooling with others is the key to reducing your auto insurance quote..

2. Raise your deductible

Your deductible is what you must pay out of your own pocket before the insurance company will cover any expenses. Naturally, the higher the deductible (which means you have to pay more before the insurance company will), the lower your auto insurance rates. By having a high deductible, you are risking a much larger payout should you have an accident, but you will also have lower monthly payments.

3. Take care of your credit

Just like so many other companies, auto insurance companies are very interested in your credit. They believe that your credit rating is a good representation of how financially responsible you are. Clearly you should keep a good credit rating for more reasons than just getting great auto insurance rates, but if you don’t take care of your credit, the insurance company is going to charge you more each month. That’s right – look our for higher auto insurance quotes because here they come.

4. Drive carefully and safely

Don’t get tickets and don’t have accidents. That is the name of the game in keeping low insurance rates. Automobile insurance companies will look back at least 3 years to see if you have traffic violations or accidents – some companies look back ever farther. Sometimes a simple speeding ticket will cause your rates to increase by 5 – 15%.

5. Drive a low-risk vehicle

Insurance companies evaluate what type of vehicle they are insuring and use that to help determine your insurance rates. High performance vehicles, sports cars, SUVs, off road vehicles – all of these may cost more to get insured just because of the nature of the vehicle. These types of automobiles are also more prone to be stolen or vandalized, and history shows that the drivers of these vehicles drive more recklessly than others. So if you don’t want to have to agree to higher auto insurance quotes, don’t drive a high-risk vehicle.

6. Don’t live in the city

Most things cost more in the city, and auto insurance is no different. Insuring your vehicle in the city will cost more than in rural areas just because the risk of theft or accidents is higher in the city. This is another reason for depending on public transportation if you live in the city. Public transportation helps keep your costs down and is much better for the environment.

7. Use safety and anti-theft devices

An auto insurance company wants to know that you are doing your best to protect your vehicle. That is why they will give you a discount if you have anti-lock brakes, airbags, automatic seat belts, or anti-theft devices. It just makes sense too – would you like to be responsible for a car that is parked on the street in the neighborhood all night long with no deterrents for theft? Neither does your insurance company, and that is why they reward those that take care of their automobile and passengers.

Just in case you are curious, here are the leading insurers of private passenger vehicles in the United States in 2006.

1. State Farm Mutual Group
2. Allstate Insurance Co. Group
3. Progressive Casualty Insurance
4. National Indemnity Co. Group (Berkshire Hathaway)
5. Farmers Insurance Group

These 5 insurance companies represent almost half of the U.S. auto insurance premiums. And these companies provide more than just auto insurance. They also provide life, homeowners, renters, boat, and other types of insurance as well.

If you want to learn more about auto insurance, there are some simple ways to go about it. First you can visit the Insurance Information Institute where you can find all kinds of information. Go to the library and read a book or two on insurance. You don’t have to get real in-depth, but you certainly need to know the basics. Finally, talk to a friend or relative who has bought auto insurance before.

It has never been easier to find the best auto insurance quote online. Just take 5 minutes and go to any auto insurance company’s website to get your auto insurance quote right now.

This entry was posted on Friday, December 18th, 2009 at 6:31 pm and is filed under Auto Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.