Automobile insurance is an unavoidable expense, but it doesn’t have to break your budget. While certain factors like age and location cannot be changed, others can be adjusted in order to lower premium costs.

Some examples include driving less (often rewarded with a low-mileage discount), taking a driver safety course, maintaining good grades, and remaining claim-free. Raising a deductible amount, the amount you must pay out-of-pocket before insurance kicks in, can also save money.

1. Get a Quote

Many insurers provide free online quotes, and it’s worth taking advantage of them by getting quotes from multiple companies. Prices may differ significantly and you might be amazed to find something much less costly elsewhere. Price alone shouldn’t be your sole factor though – make sure that you are getting appropriate coverages and limits as well as being given time by agents/company representatives to answer your queries and concerns. Consumer information sites, state insurance departments or other resources may provide ratings of insurers based on customer satisfaction scores.

Your vehicle, its year and model, and driving history all play an integral role in determining your insurance premiums. In general, older vehicles cost more to insure; more expensive cars that perform poorly in crash tests cost more. Your credit and insurance score also play an integral part; generally speaking, having good ratings results in lower premiums; paying debt off promptly can improve both ratings as well as save money in most states.

Consider cutting back the coverage or raising your deductibles as another way of saving money on car insurance premiums. While a higher deductible means higher out-of-pocket expenses if an accident does occur, but this could be worthwhile if it fits within your budget.

2. Compare Rates

Once you provide some basic information, you will receive rates from several insurers. These quotes should include all the coverage options that were requested as well as discounts such as home and auto discounts, safe driving discounts or student discounts. It’s important to compare rates fairly – make, model and value can have an enormous effect on how much it costs – certain cars may have higher repair costs or are more likely to be stolen than others, for instance.

Other factors can also have an effect on your premiums, including age, gender and driving history. Young drivers typically pay more than older ones and their rates increase if they have had traffic violations or accidents in the past. Your credit also plays an integral part of this equation and paying bills on time can save money!

Your choices in terms of coverage include selecting your deductibles and adding optional coverage such as roadside assistance or gap insurance. Different insurers also offer various levels of coverage; it might be worthwhile comparing them when it comes to having an emergency fund; in such instances you might decide you don’t require full collision and comprehensive protection coverage.

3. Look for Discounts

Many insurers provide multiple discounts that can add up to significant savings, including credit-based discounts (based on your credit score) and telematics (which monitors driving habits to lower premiums for safe drivers). Some companies even give discounts for having multiple cars insured through them and combine auto with homeowners or renters insurance can typically earn discounts of 25%; after staying loyal for some period of time you could even qualify for loyalty discounts (this varies according to insurer).

Increase your policy deductibles as another way of cutting car insurance costs; but keep in mind that doing so could increase out-of-pocket payments should you file a claim.

Finally, to reduce costs associated with auto insurance you can save by eliminating coverage that is unnecessary (e.g. collision and comprehensive). Furthermore, paying upfront could net you a discount; pay all six months or annual premium upfront rather than in monthly payments and you could receive further savings.

Be sure to ask your insurer about any discounts you could be eligible for, such as low-mileage or good student discounts for young operators who meet specific academic criteria. Also look into usage-based programs like Allstate Drivewise that customize rates based on driving habits for additional savings.

4. Change Your Policy

Car insurance might not be everyone’s favorite bill, but there are steps you can take to lower its costs. If your premiums have suddenly increased, consider whether there could be an explanation: getting a traffic ticket or being responsible for an accident could both increase premiums; similarly adding a teenager could have similar impacts.

If you have been with one company for an extended period, inquire about loyalty discounts. Many insurers provide increasing discounts as you stay with them, starting from two years onward. Some also provide savings when bundling home and auto coverage together or providing multiple forms of coverage with one policy.

Another way to save is to raise your deductible, which will increase your out-of-pocket expense but could help decrease monthly payments.

Be wary of trading valuable protection for cheaper prices, however. Carefully review quotes and select an identical policy with comparable limits and deductibles when considering policy switching. Inevitably this can have serious financial repercussions, so only do it if certain coverage needs arise and can afford the replacement coverage when necessary. If in doubt regarding coverages needed or costs available consult a licensed independent agent who can offer personalized advice and guidance.