10 Tips to Help You Save on Auto Insurance

SOLON, Ohio, May 11 /PRNewswire/ -- Drivers can save $500 or more

1. Drive less and earn a discount

If you drive less than 7,500 miles per year, you may qualify for a low-mileage discount on your auto insurance. And, some companies offer a commuter discount if you use public transportation during the week.

2. Don't use your car for business purposes

Some insurance companies will add a "business use surcharge" or increase your auto insurance premium as your annual mileage increases. But, if you must use your car for business, be sure to tell your company, so that your daily business travel is covered.

3. Increase your deductible

You might save as much as 10 to 15% if you increase your deductible from $250 to $500. But, remember that you'll be required to pay the larger deductible upfront if you have an accident.

4. Keep an eye on your credit report

Your credit history is one of many "risk factors" that most auto insurance companies evaluate when setting rates, in states where permissible by law. Paying your bills on time and maintaining a solid credit history will help keep your home and auto insurance rates lower.

5. Drive safely

You may be eligible for a price break on your car insurance policy if you have no accidents or traffic violations for a specified period, usually three years. Even a single speeding ticket can increase your auto insurance rates 5 to 10% depending on your state.

6. Buy a low-profile car

Cars are rated on a risk scale for auto insurance purposes. In general, sports cars and other high-performance vehicles are higher risk because they are common targets for thieves, and statistically, the people who own them tend to drive more recklessly.

7. Move

If you live in a rural community with little crime and traffic congestion, your auto insurance premium will generally be lower than if you live in an urban area where your car is more likely to be stolen, vandalized, or involved in an accident.

8. Keep your car in a garage

Cars parked in garages are less likely to be stolen, vandalized, or struck by other vehicles. And, you may get a slight premium reduction.

9. Install safety or anti-theft devices

Auto Insurance companies offer discounts for anti-lock brakes, automatic seat belts, airbags and more. Car alarms and tracking systems may also get you an insurance discount.

10. Shop around

OK, it might go without saying, but your current auto insurance company might not be the best one for you in the future! We recommend researching your options 30 to 45 days before your current policy is set to renew, especially if you have not shopped recently. Fact: Insurance.com customers reported annual auto insurance savings of $538 a year in April 2009. Your savings may vary.