Buying auto insurance is an important part of your overall

financial planning. The auto insurance premium rate varies

depending on the company and the type of policy coverage you

choose to have.

Here are some guidelines to lower the cost.



Shop Around- Compare the costs by shopping around at least

four to five insurance companies and comparing the quotes.

Take the help of your friends, relatives and yellow pages.

Your insurance company should offer fair pricees and posses

excellent service records. Check the financial ratings of the

company as it indicates the strength and stability of the company.



Ask for higher deductibles- Deductible is the amount of money

that you pay before making any claim for an accident. The

collision and comprehensive coverage are sold with the

deductibles. Higher the deductibles lower will be the premium rate.

Increasing the deductible from $200 to $500 may reduce the cost

by 15 to 30 percent.



Drop collision and comprehensive Coverage on older cars- If your

car is worth less than 10 times your premium in the current

market, consider dropping the collision and comprehensive coverage.



Buy auto coverage from your existing insurer- Buy insurance

coverage from your existing carrier. This may help you to

reduce the cost. Sometimes low rates are available for the

longtime customers.



Avoid double health coverage- If you think that you have enough

health insurance, and then avoid health coverage with your auto

policy. This will help you to reduce the cost.



Maintain a good credit record- Insurers are using the credit

history while determining the price of insurance. Statistically,

the lower your credit score, the more you are likely to file

claims. A person with a good credit score is more likely to

settle the accident without the support of the company. Try to

maintain a good credit record.



Discounts with low profile car- Cars that are expensive to repair

or attractive to thieves will have a higher rate. Consider buying

a low profile or average car as it your insurer might come up with

discounts for such a car.



Take advantage of the low mileage discount: Obtain some discount

on premiums by driving less than the national average mileage

recorded per year.



Consult about group discount- Sometimes you can get some discounts

on group plans provided by your employer, or a business groups, or

other associations. Find out whether such a plan is available.



Seek Car Safety discount- Some insurers offer discount if you keep

your car equipped with air bag, anti-lock brakes, anti-theft

devices, automatic seat belts. Take advantage of this.



Evan T. Smith is a contributing writer for http://www.ampminsure.org/, an online insurance forum dedicated to make insurance issues easy and manageable for all.



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