If you feel you’re paying too much for your auto insurance, you’re probably right. Like any business, car insurance companies exist to make money, and they often maximize their profits by offering a vast array of options that increase your premiums and their bottom line.

Shopping around and comparing rates is the first step in saving money on your car insurance. Instead of calling around to different companies, getting a quote online is faster and more efficient. It’s very important to get quotes from at least 4 different companies, to ensure you truly are getting the best deal. Normally, you don’t have to wait until your current policy expires to switch companies.

It stands to reason that safe drivers get the lowest car insurance premiums. Most insurance companies will offer lower rates to people that have not had accidents or traffic violations over a certain period of time. In addition, if you have taken a driving safety course you may be eligible for discounts, so make sure you mention this to your prospective carrier.

Be sure to look out for other discount opportunities. Certain safety features like car alarms, anti-lock brakes, automatic seat belts, or airbags may qualify you for additional discounts.

If your auto insurance company also offer home owner’s insurance, you may be able save money on your premiums by using the same company for both. Also, many car insurance companies offer lower premiums if you drive less than a certain number of miles per year.

Another way to save money is to consider having a higher deductible - the amount of money you are required to pay before your insurance company covers the rest of the costs. You can potentially reduce the monthly cost of your collision and comprehensive premium by 15% to 30% by simply increasing the amount of your deductible from $100 to $500.

The deductible can especially make a difference if you drive an old car. If you drive a car that is worth less than $1,000, it may not be cost effective to take out collision or comprehensive coverage because any claim you make would not significantly exceed the annual cost and amount of the deductible. And if you are shopping around for a new car, think twice before buying that new SUV or luxury sports car with their higher insurance premiums.

Unfortunately, we all have to have car insurance. But with a little bit of research, it is possible to be insured for less.