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There are various ways to reduce auto insurance. Here are a few:

* Improve your credit score. It's a fact insurers use credit scores, among other things, to determine insurance rates and is just one more justification for the monthly ritual of paying bills on time, reviewing credit reports for inaccuracies, etc.

* Always shop around. Need I say that? We all know by now, close proximity and long-standing relationships do not necessarily translate to the best deals. Comparative rates can be had by calling around, asking trusted friends for recommendations; but even better still, many online companies provide comparative rates as a service to users. A simple internet connection will provide all the information you will ever need.

* Query and Request low mileage discounts. If you live a short distance away from work or take part in carpooling, chances are you are in good stead to take advantage of low mileage discounts. Be sure to ask your insurance broker about benefits available to low-mileage drivers.

* Think about bundling your transactions. Brokers will definitely look favorable on the overall volume of business generated by an account. Doing business with other companies in the group or buying other insurance products from the same broker will, more than likely translate to discount benefits.

* Think Insurance cost before purchasing that dream car. The insurance cost on a vehicle is determined by the price of the vehicle itself, safety record, measures taken to improve safety, etc. Always do a thorough check into these factors before committing to the pushy car salesman.

* Don't overpay for insuring that old car. A recommended means of determining whether you are overpaying is checking to see if 10 times your premium is greater than the value of the car. If it is, consider reducing the value insured or dropping unnecessary features from the insurance coverage.

* Ask your broker for higher deductibles. The deductible is the amount borne by you before the insurance company is required to pay. Higher deductibles mean lower risk for insurance companies and ultimately, lower premiums.

* Ask about and take advantage of No-Claim Bonus. Each year completed successfully on the road, improves your no-claim bonus standing. Be sure to ask your broker about their policy for rewarding an excellent safety record.

* Take advantage of Group Insurance Schemes or other promotional companies by your broker. In the first instance, your broker may have lower rates for individuals who insure through group plans available through companies, associations, etc or may have on-going campaigns, such as "road angel" programs where women are targeted and rewarded from excellent safety records on the roads. Inquire about ongoing schemes and programmes and exploit them to lower insurance costs.

* Consider taking a Defensive Driving Course. Defensive driving courses are looked upon favourably by insurance companies and are often rewarded by lower premium.

* Consider Third Party Insurance. Following on point 6, in some instances, based on the value and/or age of the motor vehicle, one may decide against the more costly option of comprehensive insurance and opt instead for third-party insurance. However, while third-party insurance could mean savings over the life of the policy, an accident which would require your being responsible for effecting repairs to the other driver's vehicle could quickly spoil the fun.

Learn more about this author, Adrian Keys.
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