The cost of your auto insurance is determined by the type of car you drive, how much and how far you drive the car each day, and your driving characteristics. These driving characteristics include your driving record, where you live, and any discounts for which you qualify. Insurance companies also use your credit score to determine the cost of your insurance. The following are some tips for keeping your automobile insurance costs down:

1. Shop comparatively:Know what different insurance companies in your area are charging for similar coverage. Insurance quotes from different companies in the same area often differ greatly. Determine the amount and type of insurance you need and then shop comparatively.
2. Consider only high-quality insurance companies:Review insurance ratings from different companies such as A.M. Best (look for a rating of A and higher) at www.Ambest.com/, Standard & Poor’s (AA and higher) at www.Standardandpoors.com, Fitch (AA and higher), and Moody’s (Aa2 and higher). Make sure the company you have chosen is sound. Find examples of others who have made claims with the company and determine how well the company handled those claims. Having cheap insurance is worthless if the company fails to pay on claims.
3. Make use of all available discounts:Discounts can considerably reduce your costs for insurance. Apply for all discounts that you think you or your family members would qualify for, such as nonsmoking, nondrinking, good grades, and multiple vehicles. In addition, consider buying auto insurance from the same company with which you have your homeowners insurance or life insurance because you should get a multiple-policy discount. Always ask your insurance agent: “Are you sure you can’t do better than that?” and “Are you sure there are no other discounts?”
4. Buy vehicles that are inexpensive to insure:Ask your insurance company about the costs of insuring specific vehicles before you purchase a new car. Buying a car that is a favorite of thieves is likely to raise your insurance costs. However, buying a car with extra safety features and antitheft devices may reduce your insurance costs. Check with your insurance company to find out what features will affect the overall cost of insuring a vehicle.
5. Drive defensively:Driving defensively is critical to reducing your insurance costs. Keep your driving record clear of tickets and accidents. If you or someone in your family gets a ticket, go to traffic school to keep the ticket off your record whenever possible.
6. Raise your deductibles:A deductible is the amount you must pay toward the cost of an accident before the insurance company will make any payments. If you want to cut monthly insurance costs, raise your deductibles. Moreover, consider dropping collision coverage completely once the value of your car drops below $2,000; it may be more cost-effective for you to pay repair costs out of your own pocket if the car is in a collision.
7. Keep adequate liability insurance:Never reduce your liability limits to reduce your insurance costs! Liability insurance is fairly inexpensive, but it is very important: keep your limits high.
8. Be cautious of allowing others to drive your car:Remember that if a friend causes an accident in your car, and you gave your friend permission to drive the car, you (and your insurance company) will likely have to pay the bill, and your insurance costs may go up.
9. Improve your credit score:Take the steps necessary to improve your credit score; insurance companies believe that those with high credit scores are less of an insurance risk than those with lower credit scores. Review your credit score and credit reports every few years and make sure they are correct.
10. Review your insurance coverage on a regular basis:Review your insurance costs, coverage, liability limits, and discounts on a regular basis—at least annually. Make sure all your vehicles are included in your policy. Review your CLUE (Comprehensive Liability Underwrites Exchange) report at www.Choicetrust.com and make sure it is correct.