I guess Ben Franklin did not know about car insurance when he said that only death and taxes were inevitable in life! All 50 US states require a proof of financial responsibility to operate a car. Most of the time that proof comes in the form of a minimum allowed amount of liability insurance. Liability insurance covers you in case you cause property damage or injury while driving. It pays "the other guy." If you have a newer car, especially one that you still owe on, you probably also want to purchase insurance to cover your own property damage in case you are responsible for an accident.

If your old car insurance company has just nailed you with a rate increase, or if you are looking for new insurance coverage, you can do a few things to shave your rates! Of course, my first bit of advice would be to shop around with the top rated insurance company. I, myself, saved nearly 50% by hopping from one national car insurance company to another after I had purchased a late model car.

If you cannot find an affordable rate, consider raising your deductible. It is a slight gamble because you will be responsible for the higher amount if you do have an accident. However, you may save the difference in premiums within a few months, and it is certainly a quick way to lower your payments.

This may surprise you, but protecting your credit is one of the best things you can do to save on car insurance! Many large insurance companies have begun to use credit scores as a basis for premium rates, and so paying your bills on time can be a good time to save on car insurance. Of course, you'll also be saving on interest and avoiding late fees! People with good credit pay less for many things, which should also help them keep those credit scores up!

Look at available discounts. Safety features and anti-theft devices often trigger substantial car insurance discounts while protecting your safety and vehicle. Consider a driver safety course. Accredited driver safety courses can shave ten or twenty percent from your bill every month. Many of these courses are available, and some can be taken at home with a video or PC. It would certainly be worth a few hours to save hundreds of dollars over the course of a year.

Drive safely. I know that one minor accident caused my rates to pop up. Of course, some accidents are unavoidable, but try to keep your record as clean as possible. Not only will you save yourself from possible injury and certain inconvenience, you will save money on your bills!

Combine policies. Many insurance companies want all of your business, and so they are willing to offer discounts for multiple policies. If you own a home, check into home and car discounts. If you have more than one driver in your household, see if you can all save money by using the same car insurance company.

Use a highly rated company. Even if Joe Insurance Company has rock bottom rates, you will not save money if you do not have a reputable company backing you up.