How To Get The Most Out Of Your Auto Insurance Coverage

This especially bears true in heavily populated states like New York, Pennsylvania or California. These states can have as many 200 different insurance companies writing policies. Compare 50 different quotes and you've only explored a quarter of your money-saving possibilities.

After narrowing your list down to three auto insurance companies with competitive rates, you'll next want to do some research. When doing so be sure to:

• Contact your state's insurance department for complaint ratios.

• Investigate the company's surcharge fees. Low insurance premiums may be offset by exorbitant surcharge rates that are automatically applied to your insurance rate following an accident, regardless of how minor.

• Ask car repair shop managers for recommendations. These people deal with insurance companies on a daily basis and can provide valuable insight on which insurance companies are easiest to deal with following an accident.

2) Higher Deductibles

Opt for a higher deductible. The higher the deductible the lower the insurance premium. The savings between a $250 deductible and a $1,000 deductible can be, depending on your provider, several hundred dollars.

3) Consider Your Car Choice

You can expect to pay higher insurance premiums for:

• Vehicles with high sticker prices.

• Vehicles with high theft rankings.

• Vehicles with low safety ratings.

• New vehicles.

4) Maintain a Clean Driving Record

If you're considered a low risk driver (least likely to cost the insurance company money) you'll be rewarded with low insurance rates. Conversely, you can expect high premiums if you have a driving record checkered with traffic violations and/or accidents.

5) Maintain a Good Credit Rating

Before shopping for car insurance, check your credit rating for errors. Otherwise, it can cost you in the wallet. The better your credit score, the lower your car insurance premium.

Not all insurance companies inspect credit ratings, but those that do claim statistics prove a direct correlation between a driver's credit history and the probability of him or her making an accident claim.

6) Bundle Packages

Inquire with your auto insurance company if it offers discounts for multiple insurance packages. Many insurance providers offer reduced insurance premiums for combining say car insurance with homeowners.

Also, if you own several vehicles, ask about discounted insurance packages for multiple vehicles.

7) Older Vehicles

If you own an old beater car that's low in value, consider dropping collision and/or comprehensive. If your vehicle is worth less than 10 times your insurance premium, carrying collision and/or comprehensive is not cost effective.

8) Low Mileage

If you work from home, ride public transportation, or car pool to work you may be eligible for a low mileage discount. This is one of those discounts that requires you asking about.

9) Defensive Driving School

Inquire with your insurance provider if it offers discounts for enrolling in a defensive driving course. If offered, check if you must enroll in an approved school. Or, if you can enroll in an online program, which will allow you to study from the convenience of home.

10) Install Anti-Theft Devices

Most car insurance companies will offer financial incentive for installing anti-theft devices. These generally include car alarms, GPS tracking devices, window sketching, ignition shut-off devices and steering wheel bars.