There are a variety of factors that determine the cost of your car insurance premiums. Here are some tips to help you lower your insurance costs.

Look for Car Models with Lower Insurance Costs
Before you buy a new or used car, look into the costs for insuring it. Car insurance premiums are based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. High-end luxury cars and performance vehicles cost more to repair, maintain and insure than family sedans. The same applies to classic cars: the more expensive to buy, the more expensive to repair, maintain and insure.

To help you decide what car to buy, you can get information from the Insurance Institute for Highway Safety (www.iihs.org).

Safety Makes a Difference
Keeping a safe, clean driving record can lower your rates. Choosing a car with additional safety equipment can mean discounts. Taking a driver training or accident prevention course may qualify you for lower premiums. Ask your agent for details.

Combine your Insurance Policies with One Company
Many insurance companies will give you a price break if you have more than one type of insurance with them. You can combine homeowners and auto insurance, and you may get a break for having multiple cars insured with the company. You may also have lower rates if you’re a long-time policy holder. It still pays to shop around, because you may save more money by combining policies from different companies compared with a multi-policy discount. Generally speaking, however, you will save money by combining your insurance with one company.

Request Higher Deductibles
A deductible is the out-of-pocket amount you will be required to cover in the event of a loss. The higher the deductible on your car insurance policy, the lower your premium.

Increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim.

Changes in Your Life?
Are you still insuring drivers who no longer live with you? Do you drive less for your job than you used to? Have you just gotten married, or graduated from college? Are you living in a different part of town? Is your teenaged driver getting good grades in school? All of these things affect how much you pay and could result in discounts.

Reduce Coverage on Older Cars
Consider dropping collision and/or comprehensive coverages on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Auto dealers and banks can tell you the worth of cars. Or you can look it up online at Kelley’s Blue Book (www.kbb.com). Review your coverage at renewal time to make sure your insurance needs haven’t changed.

Maintain a Good Credit Record
Building and maintaining a solid credit history can reduce your insurance costs. Insurance companies are increasingly using credit scores to determine the cost of auto insurance coverage. Pay your bills on time, don’t obtain more credit than you need, and keep your balances as low as possible. Pay off your revolving credit accounts if at all possible, and close any accounts you’re not using. Check your credit record on a regular basis, and correct any errors promptly so that your credit records are accurate. You may want to subscribe to a service that periodically updates you on any changes or issues with your credit rating.