Here are several ways to reduce car insurance rates.

Choose the ones that suit you, your car and your age and circumstances best.

1. The car you drive affects your insurance rates. Choose wisely.

   Yes, we all want that super hot fast sports car. Buying and driving it, however, will make your car insurance rates higher than they need to be. Before you buy a car, it’s a good idea to collect all the details about insurance for that particular make and model. Include both the cost of mandatory (in most states) liability insurance rates, as well as optional, but sometimes financially smart, theft and comprehensive insurance.

   Your insurance rate depends upon the price and the repair cost of the car, should you have an accident. Insurance companies also offer theft insurance, which pays you the (wholesale) value of the car in case of theft. This can be a good idea, especially if you take out a loan to buy the car. In fact, the lender may require you to have this type of insurance. Some cars are more popular with thieves than others, so it’s worthwhile to check this out (theft rate) before you make your car purchase.

2. Where you park your car overnight will also affect your rates. If you have access to a garage or other protected environment, you most likely will pay less than if not.
3. The surest way to reduce your auto insurance payments is to ask for higher deductibles. The deductible is the amount of money you have to pay from your own pocket when a claim is made before your insurance company pays the rest. The higher the deductible, the lower the premium amount.
4. If you have a good driving record – no tickets, no accidents, then you have an excellent chance for lower rates.
5. You can have all your (and your family’s) insurance policies with the same insurance company to get more discounts. Group auto insurance is also an option for a reduction in your auto insurance premiums.
6. Some online insurance policies offer a discount. So buying online insurance is a good way to save some money.
7. Take a Driver’s Education course. Most insurance companies will offer a discount if you can show that you have successfully completed a Driver’s Education course.

These details may differ from one state to another and one insurance company to another. So you should collect 2 or 3 quotes from different insurance companies and choose the best one that suits you, your car and your financial condition.