Auto insurance is expensive these days . . . and sadly to say there is just no way around it, but you can find lower car insurance rates which we will go over how to do. Car Auto Insurance policies can cost a few hundred dollars all the way up to a few thousand dollars a year. The car insurance rates you pay depend on the insurance company, your age, type of car along with the your driving record.

Although it is probably the worst part of owning your vehicle you should never go without auto insurance . . . despite the costs. The costs of a car accident will be MUCH MORE costly without the assistance of auto insurance. Not to mention almost all states in the United States require you to have some form of automotive protection for yourself with at least the minimum amount of liability coverage. The minimum amount of auto insurance liability is usually not enough for the average car owner. As you start to add in additional insurance coverage for your car, you start to realize that you may just end up paying a fairly large sum annually.

So if you take the time to compare and understand auto insurance you can find the right car insurance policy that wont clean out your wallet . . . like at the gas pumps. Here are 10 tips for lower your auto insurance by as much as 40 percent

ALWAYS compare insurance companies and policies. There are some states which regulate auto insurance rates, but still the insurance premiums find a way to vary by hundreds of dollars for the same exact coverage. Which is why it makes cents . . . I mean sense to shop around. First check with your state insurance department, most of the time they can provide information about the car insurance coverage you need. Its easy to find the best car insurance policy, and even find a lower car insurance rate then you currently have when you compare insurance policies.

Eventhough the lowest price insurance policy sounds like the BEST way to insure your vehicle you should not make your decision based on price alone. The car insurance company you decide to go with in the end should provide good service at the best price. Be sure to ask the insurance company how and if you are able lower your costs somehow. Rule of thumb is get at least three quotes from three different companies, and then pick the one that you feel most comfortable with in the price range you feel is right.

One way you can lower the price of car insurance is if you choose to increase your deductibles. You car insurance deductible is the amount you pay for an insurance claim before the insurance company picks up the rest of the total for the damage associated with the claim. For example, if you were to increase your deductible from $500 to $1000 can reduce your premiums by approximately up to 25% The down fall is you must have the financial resources to handle paying the deductible when the time comes.

Dont forget to review the policy carefully and remove certain types of coverages from your policy that are not needed. Almost all states require liability insurance coverage for your car, but the rest of the coverage is where you have to decide for yourself if it is needed or not and if it is needed how much do you need. When considering what you do and do not need you do not want to be underinsured in the event of an accident, so it is not a good idea to remove all of your additional coverages. Some optional coverages will include medical payments, collision, uninsured motorist and comprehensive coverage.

You may choose to drop collision and comprehensive car insurance coverage for older cars to lower you premiums. If are going to insure an older car that is worth less than $3,000, it may be more cost effective to drop the collision and comprehensive insurance coverage since you will pay more for the coverage than what you would collect for a claim.

If there are a few loose ends on your credit report try taking care of them will lower your car insurance rates since auto insurance depends on your credit these days. Car insurance companies will look at your credit history as if there would be a correlation between your driving risk to the company and your credit history – way to make more money maybe. So basically if you take care of your bills on time and have a good credit history, you can enjoy lower car insurance rates.

The less you drive the more the insurance company will reward you, as you are not on the road as much. An insurance company will often offer low mileage discounts to individuals who drive less than a set number of miles each year. Some ways to cut down on miles driven are to car pool with friends when going to work or take the train or a plane instead of driving to another state.

Maintain A CLEAN DRIVING RECORD, you would also be surprised at how many jobs also consider this when hiring. The car insurance company will give you a HUGE price break on your insurance policy if you can offer a clean driving record. This means no accidents and no serious violations during a set period of time. Drive careful and be a defensive driver at all times and you will be able to receive the great benefits of a safe driver.

When buying a car choose a low profile car. Insurance rates are determined on the different models of vehicles. Sports cars and high-performance cars will cost more to insure. Mainly for the obvious reasons but because they are a bigger risk of theft and the drivers often drive faster presenting another risk. When it comes to newer cars it will cost more to repair or replace parts than it would for an older vehicle, so naturally they are more to insure.

Dont be afraid to ask about safety and security discounts. An insurance company will offer discounts on your insurance if your car has the following: air bags, automatic seat belts, anti-lock brakes, tracking systems and or a car alarm. These types of upgrades reduce injury risk to you, as well as the chances of your car being stolen.

Finally, ask about other discounts that you may have missed. The insurance company may offer a discount if you buy more than one type of insurance from them or if you insure multiple cars under the same policy. You can also receive discounts for taking defensive driving courses, good-student discounts, being an AAA member and staying with the same company for a few years.

Here are some auto insurance facts and myths that we will hopefully clear up today. Because many drivers under the influence of these insurance myths my have a change of thought about their current auto insurance coverage, when the insurance facts come out. So are first myth is one that you have probably heard for years. ..

The color of my car will affect my auto insurance rate

No ! The color of your car – RED for example – will NOT affect your insurance rate, what does influence your auto insurance rate is the year, make, model, body type and engine size of the car you would like to add insurance on. Believe it or not your credit history will play a small role in what your monthly premiums are and of course the condition of your driving record will have a huge impact on what you will pay.

No-fault insurance means, is it not my fault . . . This means that your insurance company pays for any damages regardless of whos at fault.

No . . . sorry to say but that is not how no-fault auto insurance coverage works.

My car insurance rate is set by the government.

No! For most states the government has little or nothing to do with your auto insurance rate, however there are maybe two states that have government regulation for how much a car insurance company can charge. But once again what will have a role in how much you pay for insurance is where you live, the type of car you drive, your credit score, and your driving record.

I recently paid my insurance premium. The new car I just purchased is covered.

Not necessarily. Not so fast there, a large number of car insurance policies require that the policy holder inform the insurance company or the agent within a particular number of days, if coverage is desired for the new vehicle. So if you are planning on purchasing a new car then be sure to speak with your auto insurance company and figure out the details.

Male drivers under the age of 25 pay more for auto insurance.

Yes! Sadly to say male drivers can potentially pay more for car insurance than female drivers. However, across the board, teenagers and mature adults end up paying more for auto insurance largely attributed to the fact that these age groups are typically involved in more auto accidents.

If I lend my car to a friend and my friend is in an accident, his or her insurance company will pay for the damages on my car…right?

Wrong! Your car is your personal responsibility! And believe this, even though you werent physically present at the time of the accident, you still will receive a mark on your insurance record and your insurance premium may possibly increase, or the company might even have your auto insurance terminated.

A persons credit score has an affect on their car insurance rate.

Yes! Your credit score plays a part. Most insurance companies take your credit score into account when deciding to raise or renew your auto insurance coverage.

I am still covered for theft, windstorms, hail and deer accidents even without comprehensive coverage

No! Many drivers believe that if they only purchase collision car insurance – which covers accidents involving objects – that they will also be protected against incidents that involve vandalism, hail, animal accidents and fires. You need to pay for both collision and comprehensive car insurance coverage in order to completely protect your vehicle from all such situations.

Personal auto insurance covers both my personal and business use of my car

No! If you use your own car for business purposes such as ferrying clients, going to and from meetings, or hauling business equipment, then you will more than likely need to extend your personal car insurance to cover your business uses as well. Also if your employees use their personal car while working for you, you will also want to obtain a separate non-owned car insurance policy to cover your business.

Insurance is needed even if I have never been in an accident

Yes! There are a few drivers that get lucky and will never be involved in an accident. However, if by chance you do have an accident; your risk of losing a lot is great. Car insurance is the greatest defense you can have in the event an auto accident occurs. It is also a legal issue; you are required, by law, to have some fundamental form of auto insurance to operate a motor vehicle on public access roads, and failing to do so carries along with it some fairly strict punishments. So be sure to get all the auto insurance facts and compare car insurance rates !

These days everyone should know how to save money on auto insurance. But even if you think you can no longer afford your auto insurance, we recommend you do not drive without car insurance coverage. In the event you get into an accident and you do not have insurance, you might end up losing all your properties and end up bankrupt just to pay for the cost of the accident. So if you think you can no longer afford your auto insurance, because you cant find a lower auto insurance rate. Then internet is your new best friend because when it comes to finding car insurance rates you can afford, nothing beats the internet.

Start with shopping online to save money on auto insurance. There are many auto insurance companies online, and you will be surprised to find that the offers they give you for the same coverage you have now are alot less then what you are paying for your current coverage. There is no need to worry with these companies even though you find them online because you can actually check with your state if they are accredited or not. So basically the only difference with an auto insurance company that is not online and an online car insurance company is the rate of your premium. The reason why an online insurance company can provide you with lower auto insurance rates is because they do not charge you with their overhead cost, such as storefronts and additional staff.

When you compare car insurance quotes online, you will be able to get the most competitive rate if your driving record is good. Now, if you have accident and other violation, you can still find auto insurance companies that have great offers for drivers that have filed a claim or two in the past. If have a few dings on your driving record but you still want to save money on auto insurance and receive lower car insurance rates, then you should look for a smaller insurance company that can actually meet your budget. When you are looking to save money on auto insurance you would like an insurance company specializing in writing high risk auto insurance policies. They can give you the most competitive rate and certainly lower than the national average rate of insurance.

Last, check the rate of your car insurance every six months. It is best to get quotes from a different insurance company every six months. This way you can actually save a lot of money on a monthly basis.