When we look for ways to cut our expenses, we often overlook one place where with a little effort we can save more than we would ever imagine: our car insurance premium. Most of us just pay it and get on with life not realizing that there are ways to shop and compare and save money. Rates are not all the same everywhere and with every agency. There are steps you can take.

It is very important to have the legal required amount of insurance coverage. There is no point in trying to lower your premium by driving with inadequate coverage. But, there are other factors that play a part in determining the cost of your car insurance.

The first and biggest thing that will affect your monthly premium payment is your deductible. The deductible is the up-front payment that is required when you make a claim before the insurance company pays its portion. Many people raise their deductible to save money on their monthly bill, but when they file a claim they find out the amount they have to lay out is much higher. If you choose a low deductible you will have a higher monthly premium payment.

Choosing a deductible is a trade off in the end. You have to choose which works best for you. There are some other things that can affect your rates that you can do something about. Insurance companies often offer discounts for people who have an anti-theft device on their car. If you do not have one you might want to consider installing an alarm system. Discounts are also available for parking your car in a garage rather than on a street.

A good driving record that is both accident and ticket free also very much plays in your favor. And believe it or not your credit rating will also affect how much you pay for car insurance. The idea being that the insurance companies deem those people with a stronger credit rating to be more responsible than those with a poor credit history.

When you compare car insurance rates you will also find that there are some things that determine how much you’ll pay that are out of your control. These factors include your age, where you live (unless you want to move) and the make, model and year of your car. Sports cars are more expensive to insure because the drivers are usually considered to be more aggressive.

If you do in fact drive an older car and would like to save as much money as you possibly can on insurance then be sure to check your state’s auto insurance requirements. All 50 states now make having automobile insurance mandatory in one form or another. In some states you can just get by with medical liability while other states require minimum coverage that is more comprehensive.

The best place to get a handle on all of this is on the internet. There are many websites now available for car insurance comparison shopping. All you have to do is enter your personal information and information about your car. The website then sends this information to several insurance companies who are looking for customers. They insurance company then sends you a quote. Once you have received all of the quotes you can sit down, look them over, and decide which one is right for you and your budget.