No one wants to pay more than they have to for auto insurance, but everyone wants the best coverage possible for their money. Keep the following factors in mind when comparing quotes to ensure you get the best value and coverage on your auto insurance policy.

1. Keep Your Driving Record Clean

Insurance companies consider moving violations and accidents an indicator of high risk. Speeding and other driving offenses increase the chance that the company will have to pay due to your bad driving habits, which increases your premiums. In fact, if you are convicted of a serious violation, such as driving under the influence of alcohol (DUI), your premiums will hit the roof. Plus, your insurance company may refuse to insure you and others may not want to take the risk either.

On the other hand, if you keep your driving record clean for three years, your premiums should go down. However, this doesn’t mean that you are free to go crazy again because insurance companies keep their own records as well. If you get another ticket or are in another accident, your rates will be even higher the second time around. Fortunately, most insurance companies don’t penalize you for an accident that was not your fault, but some do, so check before you buy.

2. Own A Less Expensive Vehicle

The general rule of thumb is: the less expensive the car, the less expensive it is to insure. Of course, exceptions apply for certain cars, such as sporty models or imports. Frequently, a dealership has to service these cars and order any parts from overseas factories. Therefore, to pay less for insurance, it makes sense to own a car easily serviceable in your area. If you buy a luxury vehicle, you will pay higher premiums.

3. Buy A Used Vehicle

The repair costs of an older vehicle are around the same as the costs of repairing a newer one, but older vehicles are often written off when they get in a serious accident. In such cases, the costs to fix an old vehicle are higher than the vehicle's worth. The actual cash value (ACV) on older vehicles is lower, so even if you are in an accident that "totals" it, insurance companies pay out less. Newer cars are treated differently. They usually get repaired and need much higher coverage than older vehicles, which increases premiums.

4. Buy A Vehicle With Safety Features

Insurance companies do consider the safety features available on the particular model you drive. Driving a safer vehicle lowers the chances of a driver getting into an accident and decreases the likelihood of anyone becoming injured. If your vehicle has anti-theft devices, air bags, automatic seat belts, anti-lock brakes, or daytime running lights, your premiums will probably be lower.

Other features that rate well with insurance companies include rear-view cameras, blind spot detectors, tire-pressure monitoring systems, vehicle recovery systems, and emergency response systems. Certain vehicle models also have a superior safety record. You can check out the safest models of 2016 here.

5. Buy A Larger Vehicle

While lovers of the environment might scoff at this, larger vehicles are safer and win you lower insurance rates. Many also have excellent safety records, but avoid ones with large engines. Choose V4 or V6 engines, as opposed to V8, for lower rates.

6. Watch Your Credit

Laws vary between states, and some states still allow an auto insurance company to factor in your credit rating when calculating your insurance premiums. Some ask for your social security number when you apply and send it to the credit bureau. If you have bad credit, it can substantially increase your premiums. Even if you have good credit, this can be a concern. Inquiries show on your credit file, and multiple inquiries may trigger a red flag on your credit report. Either way, research the company's policy, and avoid ones that require a credit check.

7. Reduce Your Mileage

Reducing your mileage not only saves gas, but it also reduces auto insurance premiums. Insurance companies charge policyholders who drive more, since it increases the risk of an incident. Many companies offer usage-based insurance, also called "pay as you drive" coverage. Responsible drivers may see substantial savings if they don't rack up too many miles annually.

8. Live in a Better Neighborhood

Companies determine rates by predicting the likelihood of a claim and base premiums on the crime rate and number of accidents associated with an area, usually sorted by zip codes. While no one is suggesting that you move for a lower auto insurance rate, if you are moving anyway, choosing a location away from the hustle and bustle can save you money.

For this reason, people who live in rural areas pay less because of the reduced traffic and lower risk of accidents or theft. If moving to the country is impossible or undesirable, consider a safer area of the city with a low crime rate. Densely populated urban areas logically have more crime and accidents, and vehicles cost more to repair in some areas than others. Generally, living in a bigger city costs you more. Some companies do offer discounts if you have secured parking, so ask when you get a quote.

9. Don't Buy Vehicles Thieves Steal

Some cars are magnets for thieves, and owning one can increase your rates. In fact, vehicle theft is not as unusual as you may think. The FBI reports that a vehicle is stolen every 28.8 seconds in the United States, and insurance companies keep close tabs on which vehicles are the most enticing to thieves.

Surprisingly, the most stolen vehicles aren't high-end luxury models; they are ones easily stripped for parts. According to the National Insurance Crime Bureau, these include the Honda Accord and Civic, pickup trucks, and the Toyota Corolla and Camry, among others. If you buy a car that thieves prefer, you will pay more for auto insurance.

10. Get Married

Your marital status factors into your auto insurance rate. Married people tend to have fewer accidents than single people, and consequently, your insurance premiums could drop by almost half if you decide to wed.


You have several avenues available to lower the cost of your auto insurance. What's more, if you face unusual circumstances that you believe merit consideration, don't hesitate to discuss it with the insurance company. Companies offer many discounts, but they don't always broadcast them, so you need to ask.

Many companies also offer discounts if you bundle your policy with your house insurance or deep discounts if you insure more than one vehicle. Moreover, some offer superior rates if you belong to particular organizations. As the insurance market is highly competitive, take the time to find a policy that suits your needs and your budget. You could see substantial savings.