One of the things that can make people cross-eyed is car insurance rates.  Do you know how yours measures up against others? Why are your own car insurance rates higher than your neighbor who has two fender benders to their name? If you are like most people, you have probably gotten a bit complacent about checking to see if your car insurance rates are still competitive. There is one tidbit of information you should know:  your insurance company is not going to call you up on their own and inform you of the potential savings you could have with car insurance rates.  Sometimes, all it takes is asking for a rate reduction to enjoy great savings!

Because it may have been a while since you have shopped around for competitive car insurance rates, here are a few tips to take into consideration:

1.  Figure out what you need in terms of coverage – How you use your vehicle is one factor that determines the price of your car insurance rates as well as the type of policy. Your driving record is another factor.  If the vehicle you want to insure is for transporting your family members to school and other child related activities, chances are that you want full protection in case of an accident.  However, if you drive the vehicle to work and back and you are the only passenger, you could probably get away with liability coverage only.

Previous accidents and moving violations will also affect your car insurance rates.  If you have kept your nose clean as far as your driving record is concerned, you can expect your car insurance rates to be very reasonable.  Higher premiums are the result of any blemishes on your record.

2.  Comparison shop for great car insurance rates – You can ask five different insurers for quotes based on the same policy and receive five different quotes for car insurance rates.  There is such a disparity among many of the carriers that you can typically save a lot of money by just doing some comparison shopping.  Savings could potentially be just a few bucks a month to as much as several hundred dollars.  Don’t you have something you can do with a few extra hundred each month?

3.  Don’t be shy in asking for discounts or price breaks – Ask, and many times you shall receive!  It never hurts to ask for discounts.  Sometimes, if you go to the same company that insures your home or life, you can obtain great car insurance rates for being a multi-policy holder.  In addition, there are other ways to save.  Do you have a car alarm and special air bags? These can garner a discount in car insurance rates.  Fog lights, anti-lock brakes, hybrid vehicles and even Lowjack systems can contribute to discounted rates for your automobile.

4.  Don’t buy that new car until you talk with your insurance company – Certain vehicles just seem to scream “high car insurance rates!” Sports cars are a given when it comes to higher premiums.  In addition, some sports utility vehicles and trucks are considered riskier rides and therefore come with higher than normal car insurance rates, not only for their looks but also the probability that they might be stolen.

Do your research in regards to purchasing a new vehicle. If it is a car that would be easily fixed in case of an accident or one with a high resale value, chances are that you can get some competitive car insurance rates.  You don’t want to get “sticker shock” in the midst of insuring your new vehicle.

5.  Factor in your budget when shopping for car insurance rates – Do you want to pay monthly, yearly, biannually or once every quarter? Sometimes, how you pay can determine good car insurance rates.  Another way to manipulate the numbers into what is reasonable for your budget is to get car insurance quotes for different deductible amounts.  The higher the deductible you choose, the cheaper your insurance policy will be.  Of course, this means if you ever get into an accident, you will be out of a large chunk of money.  This option is sort of betting on the odds that your driving record will remain accident and incident free.

6.  Major life events can change your car insurance rates – Marriage usually signifies a measure of responsibility.  That is why married couples often enjoy lower car insurance rates over single people.  In addition, marriage infers at least two vehicles, so they will likely receive multi-vehicle discounts from the insurance company.

Other major life events could be adding a teenage driver to your policy.  When this happens, expect your car insurance rates to go up.  Teenagers have little driving experience and are considered a liability on the roadways. By the same token, retirement will sometimes bring reduced car insurance rates to vehicle owners. Experienced drivers who are retired are viewed as driving less, which means less chance of accidents and translates into cheaper premiums.

All but a few states in America require at least a minimum amount of insurance as protection.  When people are watching their budgets, especially younger drivers, they will likely go the cheap route in car insurance rates and that means liability coverage only.  Liability insurance covers just the basics in regards to property damage to your vehicle or another in regards to an accident.

To be fully covered in case of an accident, be sure to research car insurance rates for full comprehensive coverage which deals with anything from theft or acts of God to collisions and protection against injury.  If you have a vehicle you drive on a consistent basis, this type of car coverage is your best protection.

When you are shopping around for car insurance rates, be sure to fully research what all the terms of the policy means. Does the fine print mention any exclusion in your policy? What about if a friend borrows your car and they have an accident?  How is that scenario covered in your insurance policy? 

By doing your homework on the best car insurance rates, you can realize some savings almost immediately.  Unless you have an atrocious driving record, with the least bit of effort, you can obtain lower car insurance rates.  It is all a matter of asking!