Hey - at least it's easy to lower your car insurance rates if you don't have a Ferrari to buy super expensive car insurance for. You're so lucky... right?

What are some ways to lower auto insurance rates? Car insurance premiums are on the rise and, given the high prices of new automobiles and the number of new drivers on the road, it is of little wonder why.

Millions of Americans know they are paying too much for their car insurance but do not know how to go about getting a discount on their standard rate. Here are some of the most common ways and best methods that motorists can use to lower car insurance premiums.

Read through these tips for decreasing car insurance rates and then enter your zip in to start comparing car insurance rates today!

Shopping Around for Cheap Car Insurance

The first tip is simple: learn to shop around. Accepting your insurance company’s default premium is the worst thing you can do if you really want to start paying less for your insurance!

The car insurance company, to some extent, takes your business for granted. They have already categorized you into a comfortable slot (demographic, car type, etc.) and hope that you will continue paying the same premium as long as you can afford to do so. They don’t understand that just as frequently as your market changes, so do your own personal circumstances!

What if you were to say No? What if you tell the insurance company that you are not willing or able to make the same premium payment?

Even better, what if you tell the insurance company that you are willing to sign with a new insurance provider if it means reducing your monthly bill? One of two things will happen: the insurance provider will try to figure out a way for you to save money (to keep your business) or you will actually go out and search for other insurance providers who meet your criteria for a new policy.

Remember that these insurance providers competitively price their premiums and change their rates on a regular basis. It is best to get at least three different comparison prices before you make your choice.

What Cars are Worth Covering?

While persistence and initiative do pay off, what are some ideas that actually work? The insurance company will usually only provide a discount if you bring them some form of tangible benefit. For example, some insurance providers are willing to provide a discount for hybrids cars or cars that are built with special safety features.

Some cars are well known throughout the industry for having fewer claims or for having less expensive repairs, and so they will be discounted. It’s best to research your choice of manufacturer and make before buying or leasing a vehicle, because some vehicles carry higher premiums as a rule.

The sooner you learn what coverages are worth paying for and what coverages are not, the sooner you will be able to reduce the cost of insurance overpayment. For example, some cars are far too old to justify high collision or comprehensive damage costs. The combined premium you pay every year may even exceed the price of car’s market value.

If you are able to cover the cost of repairs yourself, you can eliminate all coverages except liability (as required by most states) and only pay a small percentage of full coverage cost. Similarly, you could increase your deductible amount and agree to cover more damages on your own, sparing your insurance company minor expenses.

Accepting Personal Responsibility for Your Vehicle

Accepting more personal responsibility for your car or truck can help you reduce your insurance premium. For example, reducing your overall mileage and using your vehicle for only personal traveling and errands can help lower your car payment. Driving carefully and avoiding all accidents or traffic tickets (for a period of three years) can drastically lower your premium rate, as can taking a defensive driving course.

Qualifying for Car Insurance Discounts

Fixing your credit problems and paying off your debt is a shrewd move, since many insurance companies will consider an insured’s credit report and score before determining a rate.

Other discounts that might be available in special circumstances include a student discount, a discount for airbags, anti-lock brakes and car alarms, and a multiple vehicle discount (a combined but reduced rate for more than one vehicle driven by a consumer, a spouse and grown children).

A multi-policy discount offers a reduction of premium rate by charging less for different insurance contracts, such as automotive homeowners and umbrella insurance. In some cases, motorists who move to a safer neighborhood, or perhaps a more rural district, save money because of skyrocketing insurance rates for busy urbanites.

Every insured person would like to receive a loyalty discount overtime, but this isn’t always a likely scenario to look forward to. Remember that insurance rates are cyclical and can be affected by a variety of industries including automotive, real estate, insurance and mortgage markets. The only way to know for sure is if you compare different insurance rates and then choose the company and contract most appropriate for your driving habits and style.

Compare Car Insurance Rates Online

Why not use our free comparison tool right now and compare several car insurance company products all at the same time? Enter your zip to start comparing car insurance rates online now!