Like it or not, car insurance rates are based on certain risk factors and not on personality traits. These risk factors include such things as age, gender, credit score, etc. The fact that you are a good person who tries to drive carefully and loves puppies has nothing at all to do with the rates that you will be offered. It is really that simple. Your auto insurance rates are based on facts and figures.

So if you cannot change your risk factors, how can you decrease your rates? There are a few ways.

First, you should simply ask. Ask for any discounts that you may be eligible for with the carrier. What are some types of auto insurance discounts?

If you have taken a defensive driver’s course, that could result in a decrease in your premiums. If you normally drive less miles per week than the average driver, that can result in a discount. If you are a senior citizen, you may be eligible for a discount. Adding certain safety features to your vehicle, such as anti-lock brakes or a security system, can result in a discount. The only way to know about these discounts is to ask your agent. If you qualify for one or more, tell your agent.

You can also save money on auto insurance (and homeowner’s insurance) if you combine the two with the same insurance company. In some cases, you can reduce your overall premiums by as much as fifteen percent. You do, however, want to make sure that you get all the coverage that you need on both policies.

It is important to be selective in what you claim on your auto insurance. Generally, many insurers will not renew a policy if the holder files more than two claims within a three year period. Whenever possible, try to pay for minor damage yourself.

You can save money by raising your deductible. Studies suggest that the average driver files a collision claim once every three years; and a comprehensive claim once every 10 years. If you increase your collision deductible on your auto policy from $200 to $500 can save up to 30 percent a year. If you are a safe driver, increasing your deductible may be the fastest way to immediately decrease your premiums.

Of course, the best way to keep your auto insurance premiums low is to be a good driver. Try to have at least 3 years of clean driving history.

If you are a parent and your teens are driving or will soon be driving consider naming them as occasional drivers in your least expensive car and then make sure that they only drive that vehicle. The teens may balk at this idea, but it will save you a ton of money on their insurance coverage.

Speaking of vehicles, high end cars and those vehicles that thieves love to steal will cost you more in premiums.

Lastly, make sure that all of your records are accurate. This includes your credit reports, your driving record, and any other public document that insurers may use in their evaluation of you as a driver.

These steps apply the same to home insurance and life insurance policies and when followed should result in sizeable benefits