First, there are many different factors that go into what determines your premium. Besides your driving history and record, the type of auto you own is just as important. Many times foreign cars are going to be more expensive due to their parts being higher priced than most domestic made cars. This is one area that is often overlooked as an insurance company takes into consideration the total value of the car, including what it would cost to replace or repair it if a claim occurs.

Secondly, just because you choose a 4 cylinder motor doesn’t make it cheaper on the premiums. Some foreign cars with 4 cylinders are more expensive than 6 or 8 cylinder domestic cars to insure. Why? Well, the parts are usually more expensive and some of the “little cars” from overseas are just as powerful as domestic larger cars. Not only that, but most of the Top 10 list of stolen cars in America are foreign cars due to their popularity amongst thieves that will strip a car for its parts to sell.

Another issue that can help you find better car insurance rates is what options you put into the coverage you want, or your state requires. Many times a $500 or $1,000 deductible is considered a minimum. However this borders on making it tough if you suffer damage to your car and have to pay that deductible. Take this into careful consideration about how much risk you are willing to assume with your deductible, and how much you can really afford.

Your coverage limits are often dictated by the state you live in, so there is usually not much “wiggle” room to decrease these limits. Just keep in mind that if you are in an accident, anything over the limits that are covered by the insurance plan would be your responsibility. The more coverage you want or need, the higher your premium will be.

The last tip that you can use to help find more affordable auto insurance is to shop around. You can visit car insurance brokers that will do a lot of the leg work for you in shopping around. You can also check out insurance companies online. Often times by going online, you can save over the traditional storefront insurance operations because some of them don’t have to pay the overhead of shops and agents around every corner. You just want to make sure that if you need them, they are going to be easy to work with and get your car repaired quickly.

When shopping online for auto insurance quotes, you want to keep it really simple. Pick a deductible and stick to it amongst all of your comparison shopping. Usually $500 is a good number to get you started in the comparison. Also, pick a coverage amount for both your liability and collision or comprehensive coverages. When you compare apples to apples, you can find the best one.

One of the myths is that shopping online for anything is risky.  Sometimes there are scams in anything you deal with, whether in a store or online.  However, if you are dealing with a reputable and well know auto insurance company, your risks are much less.  Often times, you can find great deals on insurance rates when you shop online.  Let’s look at why that is and how you can save some money on your car insurance.

Less Overhead

Often times some of the bigger car insurance companies that you see the commercials for have a smaller overhead due to the fact that most of their business is conducted online.  This reduces their costs of business, which in turn they can pass along to you as savings in rates.  This isn’t always true, so knowing what you are comparing your current policy to is a key factor.

Know what you are comparing

One of the problems when shopping around for affordable auto insurance is knowing exactly what you are getting.  If you already have an auto insurance policy, then you have something to begin the comparison.  When you receive quotes from other insurance companies, be sure to do a line by line comparison and make sure that the coverage amounts are the same.

Read the fine print

Sure, it is written by lawyers and full of legal terms, but this is extremely important.  If you don’t have a local agent that you are dealing with to buy your insurance from, how do you go about filing a claim?  What are the terms for a rental car or for coverage of damage to your vehicle?  This is usually spelled out pretty clearly and in normal language so you can understand.  If you aren’t sure, ask questions.  Not happy with the answer?  Keep shopping around!

Don’t rush into a decision

One of the biggest problems that face most of us in our hectic daily lives is the rushed day to day living.  When shopping around for insurance, have some patience.  It can be at times frustrating, however if you persist, you will find the best rates out there possible.

There are several factors that can determine if you will find affordable car insurance online.  Taking your time, knowing what you are comparing policies with and reading the fine print are just a couple of examples of how you can save money on your auto insurance rates.