If you have made some past mistakes as a driver, your driving record may contain negative information that causes you to pay more for automobile insurance. Disregarding a stop sign, driving too fast, and other simple spur of the moment events can really make your insurance premiums skyrocket.  But before you throw away your driver’s license and grab for your bus pass, keep in mind that you can still find savings on your auto insurance if you follow a few pointers.

Reduce the Limits on Your Automobile Insurance Policy

Make sure that you actually need all the coverage that you are paying for. If you can get by with lesser amounts, then you can definitely save some cash. Of course you want to be protected fully in the event of an accident, but if you drive an older car that isn’t worth a whole lot and you don’t own your home or have other significant assets, you might consider purchasing a liability only policy.  Also see if you are paying for “extras” that you don’t use, like towing service or rental car reimbursement.

Pay Your Automobile Insurance Bills on Time

One of the biggest factors, surprisingly, when it comes to your automobile insurance rates is your credit history!  If you have bad credit, you can expect to pay more for car insurance than if you have good credit.  Work on improving your credit score to lower the amount that your automotive insurance costs.  This means paying bills on time, each and every time that they are due, avoiding taking out too much credit, and keeping your credit card balances to a minimum.  Also, close any revolving accounts that you don’t use anymore; having available credit, even if you don’t use it, can alter your credit to debt ratio, which affects your credit score. When closing accounts, be sure to keep your oldest accounts open and close newer accounts; the length of time that you’ve had an open account can affect your credit score too because creditors want to see old accounts in good standing.  Follow the above tips and you can save big on automobile insurance.

Consider Driving a Different Vehicle

While you may love the power that a V-8 engine provides, driving a more modest, less powerful car or other vehicle can save you money.  As a general rule, the more horsepower a vehicle has, the more an automobile insurance company will charge to insure it.  Is it time to trade that Camaro in for a safe mini-van? Possibly – if you want to get a reduction in the cost of your insurance premiums.

Install Auto Theft Protection

Safety equipment installed on your car can make your automotive insurance cost less. Consider an aftermarket anti-theft device on your car and you can save some money on the cost of your insurance. Insurers also like to give discounts for cars with air bags and other safety equipment.

Be Honest

Never lie to the insurance company about your driving record.  Automobile insurance carriers will run a driving report before your policy becomes official, and if you have failed to be truthful, they can cancel your policy!