10 Ways to Lower Auto Insurance Rates

Auto insurance is a significant part of most consumers' budget. According to the National Association of Insurance Commissioners, the average American pays around $800 a year in auto insurance premiums. And while you can't go back and make a moving violation magically disappear, there are some simple steps you can take to make sure your auto insurance rate isn't higher than it has to be.

1. Shop for Auto Insurance Regularly

Your circumstances change all the time, and so will the way auto insurance companies view you. If you don't compare insurance rates every so often, you'll never know if you could be paying less. Shop for auto insurance using an online service such as InsuranceRates.com, where comparing rates is fast, easy and free.

2. Consider a Higher Auto Insurance Deductible

Simply put, the higher your auto insurance deductible, the lower your premium. The cost of an accident will be that much more expensive, but the savings on your auto insurance rate could make it well worth it.

3. Don't Pay in Monthly Installments

Additional administrative fees are commonly applied to payments when you split your auto insurance premium into installments (e.g. monthly, quarterly, semi-annual, etc.). Even a monthly fee of $9 adds up to over $100 a year.

4. Buy Your Auto and Home Insurance from the Same Carrier

The most under-recognized auto insurance rate discount is the multi-line insurance policy, where you purchase both your home and auto insurance from the same carrier. According to the Insurance Information Institute, a multi-line policy can save you up to 15% on both premiums.

5. Take Advantage of Good Driver Discounts

Most auto insurance companies provide discounts for drivers with excellent driving records. In fact, some states require auto insurance companies to provide these discounts. If you haven't had any accidents or tickets in the last three to five years, you're probably eligible.

6. Just Because Your Record Isn't Perfect, Don't Assume All Companies View You the Same Way

It's never good to have a moving violation on your record as all auto insurance companies will consider you a higher risk. But not all companies look at violations and accidents the same way, and many companies specialize in insuring different types of drivers. Shop around for an auto insurance rates that fits your budget.

7. Look for a Safe Vehicle Auto Insurance Discount

Many auto insurance companies offer discounts for various vehicle safety features, including air bags, alarms, factory-installed mechanical seatbelts and antilock brakes. When getting updated insurance rate quotes, be sure to indicate such safety features to benefit from available discounts.

8. Don't Overpay for Unnecessary Coverage

If you don't keep a close eye on the details of your policy, you could end up paying for things you don't need. For example, you may be a member of an auto club that provides roadside assistance yet also pay for towing on your car insurance policy. Look for opportunities to eliminate unnecessary costs.

9. Take Advantage of Good Student or Senior Discounts

Students often receive a discount on auto insurance rates if they can demonstrate good grades, as many companies feel conscientious students make conscientious drivers. Similarly, providers are also known to value the wisdom of an experienced driver, offering auto insurance discounts to drivers over 50.

10. Pay Less When You Drive Less

Many auto insurance companies will offer rate discounts on vehicles that incur low annual mileage. Others offer pay-as-you-drive programs to reduce costs. If your commute has recently changed or you have recently retired and are no longer driving your car to work, you might save money by getting an updated quote.