First and best way to cut your car insurance premium, in the US states I’ve lived in, is to have an excellent driving record. Do not get traffic violations and do not have accidents.
Be over 25 years old and do not put other drivers who are under 25 in your driver’s seat.
Second is to live in a safe neighborhood. Call your car insurance carrier and ask which neighborhood near you gets the best rates.
Park your car in a garage. Leaving it on the street makes it more vulnerable.
Buy a car that is a safe car, according to insurance standards, like a Saab. Don’t buy a sports car. Make sure you buy the right color. I think the blues get you much bettter rates than the reds. Remember that part of a car’s safety is its likeliness to be stolen.
Then commute the shortest distance with your car and make sure that your carrier knows it. I ride the bus, so I have 0 miles each way to work. That has a big effect on my insurance rates. Also, the miles you travel each year affects your rates as well.
Crank up your deductibles – this will have the smallest effect of everything I’ve listed, but it’s part of it. You can drop collision coverage if your car is older and you have paid off the loan. Remember, though, that this would mean that any collision is yours to handle, even if it is the other driver’s fault. Kelly’s Blue Book (www.kbb.com) can help you decide the wholesale value of your car and if it is worth it to hold onto your collision coverage.
The basics of auto insurance is that your insurance company is trying to cover the statistically like cost of insuring you, and trying to take a profit on top of that. Therefore, people who statistically are more likely to cost the company money in claims will pay more in premiums.
Costs that the insurance company has to bear include repair costs, so owning a car this is more expensive to repair is going to cost you more in coverage. Your latest yearbook from Consumer Reports should give you average repair costs for vehicles. Also, the Insurance Institute for Highway Safety (www.iihs.org) can help you choose a car in relation to its expected cost to be insured.
Finally, add features to your car that reduce its insurance premium. Your insurance agent can tell you what they are for your region, but they can include daytime running lights, a club to lock the steering wheel, or antilock brakes.
See http://www.pueblo.gsa.gov/cic_text/cars/autoinsu/autoinsu.htm for more tips.