Think your auto insurance premium is too high? Wondering if there’s a good way to lower it?

The cost of car insurance can vary greatly, and you may be paying more than you have to. If you want to cut your car insurance costs, here are a few tips.

We know: 5 Ways to Save on Car Insurance

1. Make a Shopping List of Auto Insurance Companies to Call

You're looking for a reliable auto insurance company with the coverage you need, at the best price. Start by asking friends and neighbors about their car insurance companies, or get a list of brokers and companies from the phone book or internet. Ask around to see if people like the service they get from their company and how much they pay in auto premiums.

2. Decide What Kind of Coverage You Want

Some kinds of car insurance are mandatory and some are not. If you have an older car that is worth less than $1000, for example, you can often save money by dropping collision or comprehensive coverage. Or, if you have good medical insurance, you may not need to pay for medical coverage with you car insurance. Eliminating this coverage could lower your personal injury protection costs by more than one third.

3. Start Calling Around

Once you know what kind of auto insurance you need, start talking to agents and brokers. Call them up or use the internet to get quotes and compare. Brokers and agents are happy to give you this information because they’re competing to get your business. Getting a quote via phone is always possible and usually very easy, just supply them with the info they ask for.

4. Ask About Deductibles

Now that you’re on the phone or the internet shopping, ask the company about the effect of paying higher deductibles for some of the types of coverage. In general, the higher the deductible you pay, the more you save on your premium payments. Often, if you’re willing to pay a couple hundred dollars more in deductible, you can save a significant amount on your monthly payment.

5. Ask About Discounts

Many companies give discounts for all kinds of reasons: to teachers, professionals, drivers with good records and older drivers. Also, ask about discounts for things like anti-lock brakes, car security systems, a locked parking garage and air bags. All of these things could help reduce your premiums.

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