Having auto insurance is a prerequisite in most states. The law stipulates that you should not drive if your auto insurance has expired. If you take chances and opt to drive without car insurance, in case of an accident, you bear all the financial responsibility for damage caused on your car and that of others, if you are found to be at fault.

Although, auto insurance is such an important thing to have, it does not mean that it will put a dent in your pockets. There are ways to save on auto insurance.

Using the following ways below, you will easily be able to save significant amounts of money on your auto insurance per year.

1.) Choose Your Car Wisely

If you are planning on buying a car, you should realize that the type of car that you drive greatly determines your insurance costs. Insurance rates depend on the value of the car; therefore, if you have a high value car, you will need to pay higher interest rates as compared to someone with a low value car.

Other than the value of the car, safety equipments in the car also greatly determine the interest rates that you will need to pay.  Most insurance companies will charge lower premiums for cars that have better safety equipments. For example installing anti-car theft system in your car will attract a lower premium. This helps you save on auto insurance policies year over year.

In the midst of saving on auto insurance, you should minimize the number of modifications that you make on your car. This is because cosmetic modifications on your car increase your risk in case of an accident which increases your premium payments.

2.) Let One Insurance Company Handle All Your Policies

If your current insurance company is offering excellent policies, ask them to bundle all your policies. Since most insurance companies offer life, vehicle, property, and health insurance; you can let one company handle all policies for you. Letting your policies be handled by one insurance company attracts discounts from the insurance company, which further helps you save on your auto insurance policy.

3.) Have A Clean Driving Record

This is another way that will help you save on your auto insurance coverage. If you have a clean driving record or you have just completed a driving safety course, you have higher chances of qualifying for discounts, thus will end up paying lower premiums. For example, some insurance companies will offer you a discount if you have not had any accident or tickets in the past three years.

Other than having a good driving record, some companies will give discounts for teenagers who have completed driver education programs. An excellent program that most companies offer a discount for is defensive driving. Some of the insurance companies will even give you a discount if you are a member of a given association. To check if you are eligible for discounts, you should inquire from your insurance company or from your insurance agent.

In addition to the above ways that will help you save big on auto insurance, shop around and identify an insurance company that offers the best policies.