• The cost of driving your car increases every time you turn around. As money gets tighter, it is important to find ways to save. One way to save money is to lower the cost of your car insurance. Unfortunately, the tips on this page will not work with every insurance company or in every state.Insurance Information Institute: Auto Insurance Checklist: A Guide for Saving Money on Auto Insurance However, you should be able to find one or two methods that can help you lower your rates.

• Like anything, buying in bulk can save you money. Many companies will give you a discount if you buy more than one type of insurance with them. This could mean insuring all your cars at the same place or buying your homeowners and car insurance at the same place.Insurance Information Institute:

9 Ways To Lower Your Auto Insurance Cost WNBC: Five Ways To Cut Auto Insurance Costs This Summer (June 28, 2008) However, this tip should never overrule the first tip—always shop around first.

• Discounts can save you up to 25 percent on your insurance premium.CNNMoney.com: 5 ways to cut car insurance costs (June 13, 2008) The trick is that you have to ask for them; the company is not usually going to offer them outright. Don't worry about sounding cheap. In a way, the insurance company is being cheap by not offering them outright. Here are a few of the discounts that many insurance companies offer. One word of warning: discounts often depend on the state you live in and the car you drive.

• Most insurance carriers offer a discount to people who drive less per year than normal. These are called "low mileage discounts." On average, driving less than 7,500 miles a year you can save you 5 percent while driving less than 5,000 miles a year can save you 10 percent.CNNMoney.com: Cut your car insurance costs (April 24, 2006)

• If your car or truck is used exclusively for work on a farm or ranch, some companies will offer you a discount.Allstate: Our Many Auto Insurance Discounts Can Add Up to Serious Savings

• Members of the military can usually find a discount, unless they live in Georgia, Indiana, Maine, Massachusetts, Michigan, Mississippi, New Jersey, New Mexico, Tennessee or Texas.MSN Money: 5 ways to get auto insurance discounts Also, you should check with your insurance company about reducing your coverage if you are sent overseas and put your car in storage. Veterans are also eligible for certain discounts.Edmunds.com: Top 10 Ways To Lower Your Car Insurance Bill

• Being a member of certain organizations such as the Automobile Association of America (AAA) or the American Association of Retired Persons (AARP) can save you money on your car insurance. For example, The Hartford's AARP Auto Insurance Program can save AARP members up to 45 percent on their car insurance by insuring multiple cars, combining it with their homeowner policy or staying with their company for five years.MSN Money: 5 ways to get auto insurance discounts

• Certain safety features on your car could lower your insurance premium. These include things like air bags, anti-lock brakes, daytime running lights and motorized seatbelts (also known as "passive restraint systems").Insurance Information Institute: Auto Insurance Checklist: A Guide for Saving Money on Auto Insurance Edmunds.com: Top 10 Ways To Lower Your Car Insurance Bill

• This is the most commonly advertised and well known. Most people think the only way to get this discount is by having a good driving record free of accidents and moving violations. This is not true. You may also get this discount if you have taken a defensive driving or safety-driving course.Insurance Information Institute:

9 Ways To Lower Your Auto Insurance Cost Get Rich Slowly: 10 Expert Tips for Saving on Car Insurance (June 28, 2006)

• Most parents with teens are familiar with this discount. Some insurance companies offer a discount to teens who have a high grade point average. Another way to encourage teens to study: make them pay the difference between the premium rates if their grades drop. Some insurance companies will offer discounts to teens who volunteer or join civic and community organizations such as the Boy Scouts of America.CNNMoney.com: Cut your car insurance costs (April 24, 2006) Insurance companies will often lower rates for parents who have children who are attending a college away from home, since they have less access to the car. Insurance Information Institute: Auto Insurance Checklist: A Guide for Saving Money on Auto Insurance

• A deductible is how much you will pay before your insurance covers the cost. A lower deductible equals higher premium costs. The higher the deductable, the lower your premium will be. According to the Insurance Information Institute, raising your deductable from $200 to $500 can reduce your premium by 15 to 30 percent.Insurance Information Institute: Auto Insurance Checklist: A Guide for Saving Money on Auto Insurance Raising your deductable to $1000 will reduce your premium by up to 40 percent or more. However, if your car is over ten years old, the savings may not be that much.Get Rich Slowly: 10 Expert Tips for Saving on Car Insurance (June 28, 2006)

• Most insurance carriers charge a fee to customers who pay their annual in installments or give a discount to customers who pay annually. This charge can be anywhere from $3 to $10 a month.Get Rich Slowly: 10 Expert Tips for Saving on Car Insurance (June 28, 2006) Edmunds.com: Top 10 Ways To Lower Your Car Insurance Bill The less often you pay, the more you will save. This tip works well if you have a small premium. If you cannot pay annually, try to pay semi-annually. If you have a higher premium, you might save more if you invest your money elsewhere.Edmunds.com: Top 10 Ways To Lower Your Car Insurance Bill

• It started with a 2004 study done by the Texas Department of Insurance that stated that people with the worst credit records were up to twice as likely to file a claim than people with the highest credit records. That one study was enough that more than 90 percent of auto insurance companies will use your credit information as a factor in determining your policy.CNNMoney.com: Cut your car insurance costs (April 24, 2006) A bad credit rating can cost you up to 50 percent more on your premium.Edmunds.com: Top 10 Ways To Lower Your Car Insurance Bill However, states are striking back. Several states have passed laws that have made this practice illegal on the basis that it discriminates against lower income families.Bankrate.com: How Credit Scores Affect Insurance Rates

• Insurance companies will use lapses in coverage to disqualify you from discounts and as a reason to raise your premium.Edmunds.com: Top 10 Ways To Lower Your Car Insurance Bill Try not to let your coverage lapse, even briefly, to avoid this. Furthermore, many car insurance companies will not insure a driver who is presently uninsured.CarBuyingTips.com: How To Buy Car Insurance & Avoid Scams

• A "no claims" bonus can save you up to 75 percent on your car insurance. A no claims bonus is a reduction on your premium for every year that you do not file a claim. Typically, no claims bonuses max out after five years.My Honest Mechanic: How to Lower Your Car Insurance Premium

• The type of car you drive is going to affect your insurance premium. Car insurance companies place cars into groups.My Honest Mechanic:How to Lower Your Car Insurance Premium They also look at particular features of each car such as its age, body type, vehicle class, safety features and if it is a frequent target for car thieves.WNBC: Five Ways To Cut Auto Insurance Costs This Summer (June 28, 2008) When looking at purchasing a car, find out its safety record and how much on average the car costs to repair to help you determine how your insurance premium might be affected.Insurance Information Institute: 9 Ways To Lower Your Auto Insurance Cost You should also call your insurance company and get a quote before you purchase a car.

• • Check out Mahalo's pages on How to Buy a Car, How to Buy a New Car and How to Buy a Used Car for more information.

• If you have an older car, you may want to lose collision and comprehensive insurance; you might end up paying more in insurance that the car is worth. Here is how you can tell:
  1. Go to the Kelley Blue Book website and find out what your car is worth (or ask your local dealer).
  2. Add up your comprehensive and collision premium. Multiply it by 10.
• If the second number is higher than the first number, you don't need collision and comprehensive insurance.Insurance Information Institute:

9 Ways To Lower Your Auto Insurance Cost The reasoning is that the average policyholder makes a claim once every ten years.Edmunds.com: Top 10 Ways To Lower Your Car Insurance Bill

• Although insurance agents won't ask you about your car's maintenance history, the reality is good maintenance will reduce your insurance costs. If your car breaks down, it could cause an accident and that would raise your insurance.WNBC: Five Ways To Cut Auto Insurance Costs This Summer (June 28, 2008) Also, make sure that you have a spare set of keys, plenty of gas and that your car is in good working order. This is a good way to prevent expensive charges such as towing fees and locksmith charges that you might submit to your insurance company.Get Rich Slowly: 10 Expert Tips for Saving on Car Insurance (June 28, 2006)

• If you have had any transgressions with tickets in the past, get a copy of your driver's record and check it for errors. Court clerks can make mistakes and leave paid tickets on your record or list you as having a suspended license even when you do not.CarBuyingTips.com: How To Buy Car Insurance & Avoid Scams