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There will always be an affordable insurance plan out there that suits you and your vehicle, but you will need to follow some new rules laid out by the companies. The tips written in the paragraphs below will help the cause. The criteria that insurance companies use to decide rates are many and varied.

You should comb through your insurance options carefully. Every company uses its own formula, based on your driving record and your responses, to evaluate your insurance premium. If you compare the rates of competing insurance companies, you will find the best offer and save considerable money.

To cut down on your monthly insurance bill, try cutting back on the amount of miles you drive each year. Most insurance companies will lower your premium if you drive less.

You should have a basic knowledge of insurance coverage plans when you are shopping for car insurance. Even if you are just insuring one vehicle, many factors going into figuring the final cost of the policy. You should get a bodily injury liability in your policy to make sure you are covered for any costs linked to hurting someone.

To make sure that your car insurance is correctly covering you, sit down with your agent before making purchases of things that personalize your car. If your vehicle gets stolen you will want to make sure the expensive accessories you put on it will be covered.

Lower your mileage by using public transportation or joining a carpool. Insurance companies love it when a consumer shows responsibility, and lowering your mileage is one way to show this to them. You could have a discount that lowers your premium if you let your agent know that you use a bus or carpool.

When purchasing cheap car insurance, it is important to keep in mind that they are only insuring the driver of the car that is on the policy. There are many times when an accident happened with a friend who had borrowed somebody's car; the insurance refused to pay. You can alter your car insurance policy to cover other drivers that use your car, although you will need to pay an additional charge.

Don't buy your teen a car. Instead, have them share a car the family already owns. It will be much less expensive to add your teenage driver to your existing insurance plan, too. Certain things, such as being an honor roll student or having good grades, might get you a discount.

Create a list of the company's discounts, look it over, and figure out which ones you can get. The amount you can save with discounts can be shocking.

100/200/100 level liability coverage is a good idea if you have an expensive car. Most states require motorists to maintain minimum liability coverage levels. Your policy should meet or exceed those levels.

Try to pay for your insurance in a lump sum rather than breaking it into monthly payments. Many insurance agencies tack on a service charge if you want to pay in monthly installments. Begin saving your money now so that when it comes time to renew your policy, you can pay it all off in one payment.

Increase your FICO credit score to get cheaper auto insurance rates. Many people do not realize that auto insurance providers perform credit checks. It has been reported that more accidents occur by those with bad credit ratings. Therefore, your credit rating has the potential to impact on your insurance costs. Keep your credit in good shape and your insurance rates will stay lower.

Getting affordable insurance is more than just a dream. Use the advice in these tips to lower your premiums and be able to afford better coverage.