10 Ways to Lower Your Auto Insurance Bills

6. Take advantage of group discounts. If you are a member of a national group such as the AAA auto club or AARP, ask your agent if there are any special discounts for your group. And if you or your parents were in the military, be sure to get a rate quote from USAA, a company that specifically caters to military personnel. As with other discounts, you'll want to make sure that the discounted policy is indeed less expensive than your other options. In other words, don't buy it just because the insurer is giving a discount to your group.

7. Choose a vehicle that is less expensive to insure. When you're in the process of buying a new car, that is the perfect time to factor insurance costs into your selection decision. Ask your insurer (as well as other insurers) for premium quotes on a couple of different vehicles that you are considering so you can see whether one would cost you more from an insurance standpoint. Also, make sure your prospective purchase isn't high on the stolen-vehicle list, since insurers rely on this list in setting their premium rates.

8. Use your clean credit report to your advantage. Depending upon the laws in your state, insurance companies can use your credit history to grant or deny coverage or use as a factor in setting your premium rate. So be sure to get a copy of your credit report and make sure any erroneous information is removed (this is a good idea even when you're not shopping for auto insurance). You'll usually be given the option to grant the insurance company access to your credit report. So, if you have decent credit, let them see it and it could save you some money.

9. Ask about discounts for young drivers. If you have a young driver in your house, be sure to ask if your insurer gives any discounts for taking a drivers' education course or getting good grades. Such discounts are becoming more popular these days as companies attempt to better assess youngsters' risk of an accident.

10. Pay your premium in advance. If you can afford it, pay your full annual or semiannual policy premium up front. Some companies actually give you a discount for doing so, while others will charge an extra fee ($3 to $5 each month) if you elect to pay your premiums monthly.

Of course, none of this matters if the company you insure your car with has financial problems and can't pay your claims. So once you narrow down your choices to a few companies, you should always check the companies' financial strength. The table below lists auto insurers with the highest TheStreet.com financial strength ratings.

Top-Rated Auto Insurance Companies
Company	Total Premiums	Grade
United Services Automobile Association	$1.7 billion	A+
USAA Casualty Insurance Co.	$1.3 billion	A+
Interins Exchange of the Automobile Club	$1 billion	A+
Dairyland Insurance Co.	$92 million	A
Auto-Owners Insurance Co.	$380 million	A
Sentry Insurance a Mutual Co.	$276 million	A
Country Mutual Insurance	$527 million	A
Tennessee Farmers Mutual Insurance Co.	$115 million	A
Mercury Insurance Co. (NYSE: MCY)	$674 million	A
Kentucky Farm Bureau Mutual Insurance Co.	$255 million	A
Source: TheStreet.com Ratings

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