Let us consider some facts at the outset –

Car insurance frauds have soared to about 33% since 2006 – Daily News report for 2010.
The U.S. Department of Transportation reports that about 6,000 motorists were killed and 500,000 injured; due to distracted driving in 2008.
With recession looming large over their heads, more and more people have taken loans that they are unable to repay on time, and the credit keeps building up!

If you’re wondering about the relevance of the facts mentioned here, think again; all of these are directly related to the sum each individual pays as the cost of his car insurance. Frauds are compensated for, by offering basic car insurance coverage at steeper prices. With distracted driving contributing to the rise in the number of accidents, insurance companies can no longer consider insurers to be ‘good risk’. They have to sell insurance dearer. The more people are under debt, the worse their credit score is, and we all know by now, the impact a bad credit score has over your car insurance rates. It has been proven that people with bad credit scores generally make more claims. The lower the rate of accidents and claims filed, the lower will be your car insurance rates!

It has been estimated that a 40-year-old man pays a national average of ,943.78 annually, for car insurance coverage that includes liability, collision and comprehensive, and that’s assuming the driver has a good driving record.

Certain measures however, do help one in lowering their car insurance rates –

Highlight your driving record – If you have had a good driving record, let your insurance company know.
Pay upfront – You could get a discount if you pay for the year ahead in comparison to the monthly payments.
Less Miles – If you don’t drive long miles it might get you lower rates; incase you do, consider moving closer to your workplace or joining a car pool, if feasible.
Cut down your liabilities – If you have other liabilities, there is a chance that you may not get a good car insurance quote. Credit scores and other loans do factor into your rates.
Combine your car insurance with home insurance – Companies offer good discounts when you get both insured together.
Work towards increasing car & driving safety – Install air cushions and anti-theft devices in your car.
Increase your deductible (The amount you have to pay out-of-pocket for expenses before the insurance company will cover the remaining costs) on your collision and comprehensive car insurance coverages– You can bargain a good reduction if you agree to pay more percentage of deductible in case of an accident. However always make sure, it’s an amount you are comfortable shelling out in an emergency.
Age factor – There are companies offering special price cuts in case you are over 50 or have to add a teenager to your policy. Look for companies that specialize in these areas, like AAA or AARP insurance for senior citizens.
Multiple cars – Getting all your autos insured with the same company earns you a further discount on your premiums. You can of course tailor your policy to have different car insurance coverages for different vehicles depending upon their value, make and model.
Be a loyal customer – A longer liaison with your existing company will surely reward you. Many companies give out dividends and discounts to long standing customers.
Bargain – Shop and compare and then compare some more until you find the car insurance coverage that you want at the most affordable price. However make sure you don’t just compare rates but also the corresponding coverages on offer. If you get a good rate from one company, show it to the others and see them bring theirs’ down.

Car insurance rates need not be frustratingly high if you take out some time to work your way around the different factors that affect rates in the first place. A little bit of time, research and strategizing can help save you more money by getting you just the right amount of car insurance coverage at affordable rates.