by Alexis Whaley

Created on: June 01, 2009   Last Updated: June 03, 2009

We all want to save money, and car insurance is one area that everyone wants to reduce their costs. Here are some ways to keep your rates from increasing over time:

1. Drive less. Insurance companies charge different prices for the amount of car mileage per year. If mileage is significantly below the average, rates can be lower. Average mileage is in the 12,000-15,000 range. Prices depend upon the company, but lower rates often occur in the range below 7,500-12,000 miles. Check with your carrier to see if it might be possible for you to lower your mileage to a lower rate level.

Ways to lower mileage include: take public transportation when practical, combine errands, carpool to work and with friends or family for fun outings, meet people in centrally located places, and, if job hunting, look for jobs closer to home.

Lower mileage also results in lower gas costs, less wear and tear on your car, less maintenance, and increases the resale value of your car.

2. Drive with care. At-fault accidents can increase insurance rates tremendously. Many carriers will forgive one at-fault accident within five to eight years, but the second one will cost you. Slow down, be patient, and be alert. Pretend that all the cars around you are filled with your friends and family, and you will instantly drive more carefully.

Be careful with yourself as well. Even a minor, one car accident, such as bashing into a pillar in a parking garage, counts as an at-fault accident (a lesson learned the hard way). So, even if you are the only one in the car, and there are no other cars around, be careful. If you are stressed, rushed or distracted, take a few breaths and focus on the task at hand.

3. Keep your car. As a car gets older, it loses value. The insurance company will not have to pay out as much for it, so your rates decrease. So what if it has a few dents or is not the newest model, keeping it longer will bring you more value. Also, registration rates decrease, and when the car payment is paid off, there will be several hundred more bucks in your pocket.

4. Do not loan out your car. TV judge shows are full of lawsuits of former friends suing over an accident in a borrowed car. If a friend causes an accident while driving your car, you are legally responsible. If you don't have coverage for additional drivers, the insurance company can sue you to recover what they paid out. Yet no one wants to say no to a good friend. It sounds harsh, but if something bad happens, it can affect your pocketbook and ruin a friendship. It is better to drive your friend than to loan out your car.

These suggestions can help you keep your insurance rates down and possibly even lower them. Treat your car as a valuable commodity that is important to protect, especially while driving, and you should see your rates decrease.

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