Car insurance is just a fact of life. If you’re feeling the pinch and thinking about dropping your coverage, think twice. Dropping your auto insurance coverage completely can lead to huge problems for you down the road, even if you don’t have an accident.

Insurance companies will probably charge you a higher rate if you have not been continuously insured, as you present more of a risk for them.  Instead of cancelling your auto insurance completely look for ways to bring your costs down to a more affordable level.

Some strategies are easier than others but most likely there are savings dollars to be found in your auto insurance premiums.  Consider these ideas when trying to find low cost auto insurance.

Bringing Down the Rates
Auto Insurance companies use many factors to determine your rate.  Unfortunately, some of those factors are completely out of your control.  However, if you are in a higher rate category because of your age or gender, you can mitigate some of the expense by working with the more controllable factors.

Factors you don’t have control over:

• Your age
• Your gender

Factors you have control over:

• Your vehicle – Certain years, makes and models will increase your insurance rates. If you want a shiny new sports car, or even an older sports car, you will pay more than if you go for the family sedan.
• Where you live – Location, location, location. Big city drivers pay more than their country counterparts. It may not be feasible, or smart, to move in order to save on insurance but it is something to consider.
• Your driving history – Good drivers get better rates. Even if you have had tickets recently start now. If you are incident free in a short three years you should see your rates begin to go down.
• Your coverage amounts – Take a good hard look at your policy. Know your coverage amounts, your deductibles and your premiums. If you have an older vehicle, consider dropping collision and comprehensive. If you can afford the risk, increase your deductibles.  Be careful though to not underinsure yourself. You’ll regret it should you have an accident.
• Grab your discounts – Don’t overlook anything when applying discounts to your auto insurance rates. Homeowners, student, elderly, good driving, multiple vehicle, club memberships, employer benefits and a host of other discounts can help offset your rates without bringing down your coverage. When in doubt, ask!

The little things add up.  If you truly want to save money without taking the drastic and ill-advised step of cancelling your coverage, take some time to perform a car insurance review. A few small changes may lead to big savings.