Increasing your insurance deductible is one of the most common ways to decrease the premiums on you auto insurance.  But this is not the only way to cut the cost of your car policy.  Another way you can save on auto insurance is by eliminating collision/comprehensive coverage on vehicles that are old and are paid off.  If you have a loan on the vehicle the lender will not allow you to drop this coverage, but if the car is paid off it is your choice.  A good rule of thumb for making this decision is – if the vehicle is worth less than ten times the premium you should probably consider dropping your full coverage and switch to a policy that is more limited.

If you have other insurance policies, you may save on insurance by getting your multiple policies from the same company.  Many providers will give you a price break if you buy more than one policy through them (i.e. an auto policy and a homeowners policy).  Insuring more than one vehicle may also get you a discount.  I wouldn’t just assume that you are getting the best deal though.  In some cases you may actually save money by buying seperate policies from different insurance companies if you shop around.

Another helpful step you can take to get the best deal on auto insurance is maintaining a good credit record.  This may seem strange, but more and more American auto insurance companies are using credit information as a factor for consideration when it comes to determining insurance premiums.  That’s a good reason to pay your bills on time and keep your credit balances as low as possible.  You may also want to do an annual credit check and correct any errors you find.

If you drive fewer miles per year than most people because you work at home or carpool you may also be able to get a low mileage discount.  In some cases employers may have access to group rate discounts on insurance programs so you may want to check with your employer, or any other groups that you belong to, to see if they have any group coverage at a discounted rate.

Additional discounts you may be qualified for include: discounts for drivers that have a good record, meaning you have not had any accidents or moving violations in the recent past. People that participate in defensive driving courses and parents of driving age children that are good students may also qualify for additional discounts.