1) Car insurance companies are like other businesses – they’re interested in making lots of money. How? In order for car insurance companies to make the most money – they will need to pay you (the customer) the least amount of money. Contrary to what you’ve seen on those commercials – car insurance companies don’t really want to pay you any money. When you begin to understand this – you’re on your way to lower premiums. Try to look at yourself from the car insurance company’s perspective. The only way you will be paying less money (lower premiums) is if the insurance company doesn’t believe it will be paying you money for claims.

2) The key to lowering those car insurance premiums boils down to the way you drive and what you drive. Car accidents, driving tickets, insurance claims all serve to increase your risk profile. A person with a high risk profile will pay higher car insurance premiums than a person with a lower risk profile (all else being equal). Make a plan to lower your risk profile over the next few years - begin practicing defensive driving techniques and keep those driving citations to a minimum – you’ll be taking a huge step toward lowering your premiums.

3) Car insurance premiums can be lowered in the short term by driving automobiles which are more “car insurance friendly”. Some cars have higher premiums for reasons such as theft, etc. Others are higher because they’re worth more money. Another way to lower your premiums is to raise your deductible. A good rule of thumb is to set your deductible as high as you can afford. Often this alone will save you a lot of money.

4) Another good practice is to keep up with the decreasing value of your car. During a conversation with my mother – I learned she was paying semi-annual car insurance premiums in excess of the value of her car. Since the insurance company would only be paying her about $200 if her car was totally destroyed – she decided to reduce her coverage to liability only.

Lastly, remember to do your research and educate yourself. The more you know about the car insurance business - the better you’ll do when shopping for lower premiums.