Auto insurance is a vital part of owning a vehicle as it protects you from unprecedented losses, but it's still a burden you have to carry as long as you own the vehicle. As such, it is important to do everything possible to lower your insurance premiums. The following are some of the ways that you can lower your auto insurance premiums:


1. Compare prices

There are many auto insurance companies offering different rates and prices, so it really pays to shop around. Make sure you get three or more price quotes from reputable auto insurance companies to compare. You can get ideas on reliable insurance companies from an internet search, friends colleagues, family, and other sources. Your state insurance department also provides price comparisons on major auto insurance companies. However, remember that price is not the only factor you should consider; the quality of services should be high even at a lower price point.


2. Consider the insurance cost of the vehicle you're buying

Auto insurance premiums are calculated based on factors unique to each vehicle model. Factors like the price of the vehicle, its age, safety rating, the likelihood of theft, and other factors can affect the premium rate.


3. Increase the deductible

A deductible is how you and your insurance provider share the risk. It is the amount you pay first towards a loss before your auto insurance policy kicks in. Requesting a higher deductible can lower your premiums significantly. For instance, raising your deductible from $300 to $500 can reduce your auto insurance premiums by 15 to 30 percent while raising it up to $1,000 can save you up to 40% on premiums. This can result in thousands of dollars saved over the life of the policy. However, don't raise the deductible beyond what you can afford to pay out of pocket if a loss ever occurs.


4. Get your auto insurance from your home insurance provider

Getting all your insurance policies from the same insurance provider can earn you discounts. Always ask if your insurer offers such discounts.


5. Maintain a healthy credit record

A solid credit history can really go a long way in reducing your auto insurance premiums. Auto insurance providers consider your credit history when pricing their policies. A good credit history indicates that you are likely to pay all premiums on time which earns you a lower rate. A poor credit history shows that you are a risky client which earns you higher premiums.


6. Invest in safety features

Install the latest and greatest safety features in your car whenever possible. Safety features reduce the likelihood of accidents or reduce the loss caused by accidents. Having many safety features in your vehicle can qualify you for lower premiums. Some of these features include anti-theft technology, more airbags, automatic braking system, lane monitoring system, among others. Ask your insurer about which safety features qualify for discounts.


7. Drive less

Spending less time on the road means that you are less likely to be involved in a road accident. This usually translates into lower premiums. Keep your mileage low to qualify for low mileage discounts and if you are a carpooler, let your insurance provider know.