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Buying auto insurance is an important part of your overallfinancial planning. The auto insurance premium rate varies depending on the company and the type of policy coverage youchoose to have. Here are some guidelines to lower the cost.

Shop Around- Compare the costs by shopping around at least four to five insurance companies and comparing the quotes. Take the help of your friends, relatives and yellow pages.Your insurance company should offer fair pricees and possesexcellent service records. Check the financial ratings of thecompany as it indicates the strength and stability of the company.

Ask for higher deductibles- Deductible is the amount of money that you pay before making any claim for an accident. The collision and comprehensive coverage are sold with the deductibles. Higher the deductibles lower will be the premium rate.Increasing the deductible from $200 to $500 may reduce the costby 15 to 30 percent.

Drop collision and comprehensive Coverage on older cars- If yourcar is worth less than 10 times your premium in the current market, consider dropping the collision and comprehensive coverage.

Buy auto coverage from your existing insurer- Buy insurance coverage from your existing carrier. This may help you toreduce the cost. Sometimes low rates are available for the longtime customers.

Avoid double health coverage- If you think that you have enoughhealth insurance, and then avoid health coverage with your autopolicy. This will help you to reduce the cost.

Maintain a good credit record- Insurers are using the credit history while determining the price of insurance. Statistically,the lower your credit score, the more you are likely to fileclaims. A person with a good credit score is more likely to settle the accident without the support of the company. Try tomaintain a good credit record.

Discounts with low profile car- Cars that are expensive to repairor attractive to thieves will have a higher rate. Consider buyinga low profile or average car as it your insurer might come up withdiscounts for such a car.

Take advantage of the low mileage discount: Obtain some discounton premiums by driving less than the national average mileage recorded per year.

Consult about group discount- Sometimes you can get some discountson group plans provided by your employer, or a business groups, orother associations. Find out whether such a plan is available.

Seek Car Safety discount- Some insurers offer discount if you keepyour car equipped with air bag, anti-lock brakes, anti-theftdevices, automatic seat belts. Take advantage of this.