The Insider's Guide To Cheaper Car Insurance

Nobody wants to think that they're paying too much money for their car insurance-but over 20% of the population is doing exactly that! Why? Because they haven't learned how to use the secrets of cheaper car insurance to their advantage! Cheap insurance isn't nearly as far away as most people think it is. All you need to do is understand how the car insurance system works and how to use it to their advantage!

There are four components to the car insurance system you need to know:

1)Your car. Yes, your car plays a role in how much you pay for your insurance rates each month. Some cars are more expensive to insure than others, for two reasons. First, certain cars have a higher replacement cost than others. It's going to cost you a lot more to insure a $75,000 Jaguar than a $2,000 clunker, for obvious reasons. There are also certain cars that can't seem to stay out of trouble-these are the cars listed in the annual report released by the Highway Loss Data Institute. Check out the information available on their website, and keep that in mind when you're shopping around for your next new car.

You can guarantee your car insurance company is going to keep it in mind when they're figuring out your insurance rates.

2)You. Yes, believe it or not your insurer actually does see you as something other than a number on a driver's license. Shocking, isn't it? Even more shocking is the discovery of what, exactly, can help you save money on car insurance. For example, did you know that people over 25 and honor roll students pay less for their insurance? How about the fact that people who live in the middle of urban areas with a heavy traffic population are more likely to have an accident than those who live out with the cows, and therefore have higher car insurance rates?

3)Your insurance. The amount of insurance you need is going to play heavily into the amount of money you're paying for your coverage. Be careful here though; even though it's going to cost you a lot less to keep minimum liability and not much else on your vehicle, thinking like that is a great way to end up a creek without a paddle after you've been in an accident. Most experts recommend you carry at least $100,000 per person and $300,000 in liability insurance, as well as comprehensive and collision coverage equal to the value of your car and uninsured/underinsured motorist insurance just in case.

Raising your deductibles is usually considered a better way to get cheaper car insurance than to lower your coverage.

4)Your driving record. You knew it was coming sooner or later! Your driving record plays a huge role in determining how much you're going to pay for your insurance. Why? Because drivers who have been in one accident are more likely to have another. Drivers with multiple speeding tickets on their record are more likely to be in accidents. And drivers who are more likely to be in accidents are more likely to cost their insurance carrier money in car insurance claims each year.

The best thing you can do to pave the way to cheaper car insurance is to be diligent behind the wheel. Even when doing 65 down the Interstate bores you to tears (and makes you the victim of plenty of irate drivers who turn that 6 upside down!) your checkbook will thank you when they're paying court costs and you're not!