In addition to being required by most states, a vast majority ofpeople cannot afford to not have auto insurance.
If yourcar were totaled tomorrow, would you be able to pay off yourexisting loan (if you have an outstanding loan balance) andreplace your automobile? For most people, this would be acrippling blow.
Just because you need auto insurance,doesn't mean you have to pay an arm and a leg for it.
Themain goal is to pay the lowest premiums possible for thecoverage you desire.
But be careful!If you get arate quote that is too good to be true, then it probably is.
Make sure that any car insurance company that you select hasgood ratings as you want to make sure that they will be therewhen you actually need them.
Most insurance companies lookat several factors when determining the premiums that you willpay.
Among them are gender (men usually pay more), age(younger people usually pay more), marital status (single peopleusually pay more), vehicle classification (sports cars can havehigher insurance rates than family sedans) and distances driven(the more you drive, the higher likelihood of an accident andthe higher your rates).
Below is a list of several thingsthat you can do to help alleviate the sting of writing thosepremium checks to your auto insurance company.

• Shop Insurance Rates - Not all insurancecompanies are created equal.
  If you shop around,you'll find that their quotes aren't equal either.
  Asa general rule of thumb, it is a good idea to get quotesfrom at least three insurance companies before you sign upfor a policy.
  In 2004, Progressive Insurance conducteda study of more than 100,000 consumers in the United States.
  Their findings were that the rates for the exact samecoverage can vary by more than $500 for a six month coverageperiod.
  
• Ask About Discounts - Make sure you get all ofthe discounts on your auto insurance policy as you areallowed.
  For example, if you have multiple policieswith the same insurance company (i.
  e.
  , car insurance andhomeowners insurance), you are normally entitled to adiscount.
  You can also oftentimes get discounts if youhave completed defensive driving classes, are a member of aparticular association (your college, a professionalorganization or even your employer), are a good student orhave been a good (loyal) customer for longer than a year.
  The bottom line, ask your insurance agent for all thediscounts that you might be entitled to.
  
• Raise your Deductible - When you get in anaccident, you must normally first pay some set deductiblebefore the insurance company kicks in and covers the rest.
  The higher your deductible, the less the insurance companywill have to pay if you get into an accident.
  Byraising your deductible, you can lower your annual insurancepremiums.
  
• Improve Your Credit Score - While you may not seethe correlation here, insurance companies like to insurepeople with good credit.
  If you have credit problems,your automobile insurance premiums are likely higher thansomeone with good credit.
  If you are getting ready toshop for a new policy, it might be a good idea to first haveyour credit report pulled to see if there are any ways thatyou can improve your credit score before applying.
  
• Drive Safely - Perhaps one of the easiest thingsfor most people to do to lower than car insurance is tosimply get in the habit of driving safely.
  If you havea lot of speeding tickets and accidents, you are going topay more for insurance than someone who has no tickets oraccidents.
  You'll find that insurance companies arequick to raise your annual premiums when you get nabbed forspeeding or are the cause of a traffic accident.