A handshake and a promise used to be a contract. People didn't worry about things like insurance because they trusted the goodwill of their neighbor to reimburse them for damage they cause. For different reasons, including a rise in the frequency and cost of auto accidents, auto insurance is now an important purchase for car owners. The federal government mandates that at least minimal auto insurance be carried by all car owners. The rise in the need for auto insurance over the last decade has led to more complexity in the insurance industry, while at the same time, increasing the necessity to be more cost aware in auto insurance purchases.

Now, buying auto insurance requires as much leg work as buying the car itself. It is crucial to know the criteria that an auto insurance company considers when offering quotes. This will allow you, the consumer, to identify what steps you need to take in order to get a lower auto quote. Here are five tips to keeping your auto quote low.

1. Depict yourself as a €safe' applicant. Insurance companies have to manage risk. Therefore, they offer drivers who are less likely to get into an accident or a minimum amount of wrecks of less severity, a lower insurance quote.

• Drive without any traffic violations or accident claims to maintain a clean driving record.


• Put anti-theft devices inside your vehicle.


• Take a Drivers Safety Training course.


• Review the National Highway Traffic Safety Administration (NHTSA) and The Insurance Institute for Highway Safety materials on safety related aspects of different vehicles. Buy an automobile that is officially designated as 'safe'.


• Keep your vehicle in a garage.

2. Show you have good credit. Insurance companies have to manage the risk they take on as well as getting paid on time. With good credit, there is less risk of you not making your payments on time, thus warranting a lower rate.

• Clear up any errors on your credit and maintain a good credit score.


• Cut down on your number of outstanding credit cards to only two or three.

3. Shop and buy your insurance intelligently. The way you organize and pay for your policy can lower the risk that an insurance company faces with respect to you as a customer. You can receive a lower insurance quote and policy by taking the following steps to lower their risk.

• Buy a policy annually instead of a six monthly coverage to get you a lower rate that remains the same for a year.


• Choose automatic payment deductions from your bank account or your credit card to dodge the fees for mail payments.


• Increase your deductibles to as much as you can reasonably afford on collision and comprehensive policies to reduce on the rates.


• Buying your home and auto insurance from the same company might get you loyalty discounts.

4. Be honest with yourself about your insurance needs. The more coverage you get the more it will cost you. Strip your policy to just the minimum of what you need. Add-ons are killers in the insurance business.

• If you own an old car with little market value or your vehicle isn't used too much, opt for minimum liability alone. It will cost you less.


• Insure according to your needs alone once you fulfill the legal mandate on auto insurance.

5. Other discounts and savings you may qualify for.There are many other factors that go into your insurance quote. Taking some of these steps can translate into substantial savings.

• Tell your agent if your car is used only for one particular purpose as this could limit the cost.


• Students can receive discounts if they make good grades.


• If you smoke, give it up; it can help you get better quotes.


• Your occupation affects your rates. For example, a delivery boy carries a higher risk than a storekeeper. Let your agent know if you change careers.