You can save money on your car insurance once you understand the criteria the insurance companies use to assess your premium. The criteria includes your age, marital status, where you live, and what kind of car you drive. It includes your personal driving record and your credit worthiness.

Human factors

There was a time that single males under the age of 25 had higher premiums because they're in a group that statistically has the most collisions. However, some states don't allow discrimination based on gender, so the premium was raised for both men and women. (instead of being lowered)

Married people have fewer accidents and lower insurance rates than singles. Discounts for certain organizations are available and discounts are given for less miles driven per year.

Vehicle factors

The Highway Loss Data Institute (HLDI) compiles data on accidents and stolen vehicle frequency. Cars that are involved in more accidents have higher insurance premiums. As you might also expect, people who drive cars that are frequently stolen have higher premiums. If you drive a sports car you can expect to pay more.

Location factors

Your location, or the area in which you live determines rates, in certain states. Greater population and more traffic increase the risk of accidents and bring higher premiums in these states.

With all these factors to consider, it might seem like a huge task to save money on your car insurance. Obviously, there are some things we can't or won't change to lower our insurance premiums, but we're still left with some options.

Get insurance breaks by the following:

* Insure home and car together for savings
* Drive less than 7500 miles per year
* Get discounts for car alarms
* Increase your deductible
* Shop around at renewal time
* Drop collision on older cars
* Have your teen share the family car vs. having his own car
* Good driver discounts: no accidents or traffic violations

Comparison-shopping is still the name of the game for many of us. Use the Internet to find insurance companies and compare prices. While some insurance companies penalize you for a driving a certain type of vehicle, other insurance companies base their rates on their own experience with vehicles, and that might be in your favor.

While none of us can be without insurance, we want the best package and rates available. How much insurance you require, depends to a great extent on your assets. A general rule of thumb is, the more assets you have, the more you stand to lose, and the more insurance you'll need.

Learn more about this author, Mona Gallagher.
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