by Alexis Whaley

Created on: June 09, 2009

The first time you get car insurance you may feel as if you are being strangled. Especially nowadays, the prices can be astronomical, even if you thought you were prepared for it. You wonder how you are going to afford it, but you have to get it, so you do, and somehow you make it work. Pennies must be pinched.

The good news is that over time it is possible for these rates to go down. The following areas will affect your bottom line:

Mileage. One of the best ways to get lower car insurance rates is to reduce your mileage to below the average, which is in the range of 12,000-15,000 miles per year. If you are job hunting, this is a perfect time to look for a job closer to where you live. Check out public transportation to see whether it can work for you. Carpool with coworkers, or family and friends when doing fun activities. Not only will it save money on your insurance payments, but also on gas and car maintenance.

Safety. Driving carefully can lower your rates significantly. Insurance companies will forgive one at-fault accident every eight years or so, so if you already have one you need to be extra careful to avoid another. Speeding tickets and moving violations will increase rates as well. The longer you can drive without getting into any accidents or getting tickets the better off you will be.

Credit rating. An excellent credit rating can get you better insurance payments and policies. Live within your means and pay all bills on time.

The car. As a car gets older, it has less value, and the insurance company will not have to pay out as much as when you first bought it. This results in lower payments. It is far better to have an older car with lower payments than to have the newest shiniest model on the block and shell out more money. And it is probably likely to get broken into or stolen less, meaning the car is there for you when you need to get somewhere!

Safety equipment. If your car has proper airbags, seat belts, and computer-chip keys, the rates can be lower. Security systems, anti-lock brakes, and side airbags can also contribute to lower insurance payments.

Deductible. A higher deductible means lower monthly payments. However, if there is a car loan, the lender may have a requirement that you have a lower deductible, so this is not an option. But once you own the car free and clear, you could make this change.

All of these choices have trade-offs that need to be considered to determine if they are worth it for you and work for your situation. And don't forget to comparison shop among companies every few years to see if you can find a better deal.

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