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One of the best ways to keep your auto insurance costs down is to have a good driving record.

Following are other steps you can take to lower your insurance costs. 

1. Shop around

Premiums can vary significantly from insurer to insurer, so it pays to shop around. Get at least three price quotes. You can shop online via quote comparison websites, get quotes directly from insurer websites or work with either exclusive or independent insurance agents in your area.

You buy auto insurance to protect you financially and provide peace of mind, as well as meet the legal requirements of the jurisdiction you live in. It’s important to pick a company that is financially stable. Check the financial health of insurance companies with rating companies such as AM Best () and Standard & Poor’s ().

Don’t shop by price alone. Ask friends and relatives for their recommendations. Contact your state insurance department to find out whether they provide information on consumer complaints by company. Please note some insurers require you to obtain quotes and purchase coverage through their agents.

2. Before you buy a vehicle, compare insurance costs

Before you buy a new or used vehicle, check into insurance costs. Auto insurance premiums are based in part on the vehicle’s price, the cost to repair it, its overall safety record and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. To help you decide what car to buy, you can get information from the °µÍø½ûÇø Institute for Highway Safety ().

3. Ask for higher deductibles

Deductibles are what you pay before your insurance coverage pays for the loss. By choosing higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim.

4. Reduce coverage on older vehicles

Consider dropping collision and/or comprehensive coverages on older vehicles. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Auto dealer appraisers can tell you the market value of your vehicle. There are also numerous self-service sources to determine your vehicle’s value, including and . Review your coverage at renewal time to make sure your insurance needs haven’t changed.

5. Benefits of bundling

Bundling your auto insurance with either your home or renters insurance from the same carrier is one of the most common discounts that generates a discount on both policies. Another common discount is insuring more than one vehicle on the same policy. There are many other ways to reduce your auto insurance costs, including signing up for a usage-based telematics or a pay-per-mile program. But it still makes sense to shop around! You may save money buying policies from different insurance companies, compared with a multipolicy discount.

6. Maintain a good credit record

Establishing a solid credit history can reduce your insurance costs. Most insurers use credit-based scores (except in four states where it is prohibited) to rate the cost of coverage. Actuarial data shows how one manages their finances is a predictor of risk. Those with higher insurance scores file less claims and vice versa. To protect your credit standing, pay your bills on time, don’t obtain more credit than you need and keep your credit balances as low as possible. Check your credit report on a regular basis and have any errors corrected promptly so that your record remains accurate.

7. Take advantage of low mileage discounts

Some companies offer discounts to motorists who drive a lower than average number of miles per year (typically 7,500 miles or less per year). Low mileage discounts can also apply to drivers who car pool to work.

8. Ask about group insurance

Some companies offer reductions to drivers who get insurance through a group plan from their employers, or through professional, business and alumni groups or from other associations. Ask your employer and inquire with groups or clubs you are a member of to see if this these types of auto insurance discounts are available.

9. Seek out other discounts

Companies offer discounts to policyholders who have not had any accidents or moving violations for at least three years. You may also get a discount if you take a defensive driving course. If there is a young driver on the policy who is a good student, has taken a drivers education course or is away at college without a car, you may also qualify for a lower rate.

When you comparison shop, inquire about a wide array of common discounts*, including:

Advanced Driver-Assistance Systems
Antitheft Devices
Bundling Auto with Another Policy from the Same Insurer, Such as Home, Renters, Life or Pet °µÍø½ûÇø
College Student Living Away from Home
Defensive Driving Courses
Drivers Education Courses
Good Credit Record
Higher Deductibles
Low Annual Mileage
Long-Time Customer
More than One Vehicle on the Same Policy
No Accidents in Three Years
No Moving Violations in Three Years
Student Drivers with Good Grades

*The discounts listed may not be available in all states or from all insurance companies.

The key to savings is not the discounts, but the final premium you pay. A company that offers fewer discounts may still have a lower overall price.