10 Ways to Lower Your Auto Insurance Bills

Hands down, the best way to save money on your auto insurance premium is to be a safe driver. The fewer accidents and traffic violations you have, the more insurers you'll have bidding for your business and the lower their rate quotes will be. However, not all of us have a perfect record, so we need to look at additional ways to save money. Here are a few:

1. Take a driver safety course. If you've been ticketed for an accident or some other violation, the state will remove it from your driving record when you take a driver safety course. The required course length, content and limitations vary from state to state, but if you want to keep your driving record as clean as possible, this is a relatively easy route to take. In addition, almost all insurance companies will lower your premium just for taking the course. So even if you haven't been ticketed, you can still take a driver safety course to save money.

2. Increase your deductible. Ask your insurer for premium quotes using different deductible levels to see how much you could save by covering a greater portion of an accident cost out of your own pocket. It may be worth it to go with a higher deductible, particularly if you're a safe driver who is less likely to be in an accident or if you've got the financial capacity to pay a higher deductible in the event of an accident.

3. Forgo comprehensive and/or collision coverage. If the value of your vehicle is not that high, you might want to consider going without comprehensive and/or collision coverage. For instance, if your car is more than 10 years old or if it already has significant body damage, the cost of these coverages over a year or two could exceed the value of the vehicle entirely.

4. Compare prices regularly. Shop around by getting premium quotes from other insurers every year or two. You don't necessarily have to change companies, but this is generally a worthwhile exercise. It's relatively easy to do, and you could find another insurer that will save you a significant amount of money on your auto insurance.

5. Use the same company for homeowners and auto insurance. Almost all insurers will give you a discount on your premium if you purchase insurance for both your home and your car from them. Be careful though. Sometimes, even with this discount, you could end up paying more than you would by shopping for the least-expensive coverage from two separate, unrelated insurers.