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Auto insurance rates can vary from insurer to insurer with premiums largely dependent on the vehicle you drive, your driving history and other factors including your age, where you live and how often you drive. You can save hundreds of dollars on car insurance by carefully comparing like coverage among insurers. Read on and we’ll discuss some of today’s hottest insurance saving tips.

1. Your credit. Your credit score is used by auto insurers as one means for assessing risk. If your score is low, you may still be able to get car insurance. However, your rate will reflect your weak credit score. If possible, resolve your credit problems first before applying for new insurance.

2. Your coverage. Always compare like coverage with like coverage to make an adequate comparison between two insurers. If you have a new car, then you’ll need collision coverage as well as uninsured and underinsured motorist coverage, property damage, bodily injury, personal injury and medical payments coverages, and comprehensive insurance.

3. Consider extras. If you drive a lot, there are additional types of coverage you may want. These include roadside assistance and rental reimbursement. Please note that many new cars come with manufacturer supplied roadside assistance, thus this option is a cost you can forget if so covered.

4. Inquire about top-tier rates. You may have the good fortune of not being in an accident within the past five years and live in a neighborhood where auto thefts are low. Don’t expect to automatically receive a discount that can be upwards of 15 percent from your auto insurer — ask and it shall be given to you.

5. Bundle your policies. The more business you do with one insurance company, the better for you. If you have multiple cars, place each one under the same insurer. Homeowners coverage can be included too, resulting in a bundled discount that will save you money.

6. Encourage good grades. Teen drivers are expensive to insure, but you can get a discount if your children get good grades. For college-aged students, you’ll receive a discount if they commute less than 100 miles or don’t use the car while on campus.

7. Consider group discounts. You may be able to enjoy significant discounts through your employer, school or professional organization. Insurers typically award generous discounts to consumers who are affiliated with a certain group and give affinity discounts that reward both the group and the consumer. You won’t qualify for a discount, however, if you have a bad driving record. If so, consider taking a driving school class to wipe out some of the points on your record.

Insurance Considerations

Auto insurers compete for your business and may offer a novel way for you to enjoy further discounts. Some discounts are predicated on paying your bills online. Others offer discounts if you allow them to track your driving behavior electronically. Whatever discounts are available, see if you qualify and always shop around to find the best coverage at the lowest cost to you.