Each state in the U.S. has different rules regarding car insurance. Depending on your age and driving record, the amount you pay can be significantly higher or lower than you might expect. Fortunately, the amount you spend on coverage is one of the few financial adjustments you can make without losing a ton of money.

There are a number of steps you can take to decrease the amount you pay for auto insurance without having to cancel your current policy. How can this be accomplished?

Follow these ten tips to help you reduce your car insurance costs:

1. Shop around
   One of the most important things you can do is to compare prices. The insurance industry is highly competitive, so rates can vary from company to company. A good time to do price comparisons is when your current policy is about to be up for renewal. Call companies directly, or use the Internet to shop around. We recommend getting at least three quotes from companies like
   
2. Reduce coverage on old cars
   If you've got an old 1979 Ford LTD II sitting around, consider dropping collision and comprehensive coverage on it. Purchasing the coverage costs on a car this old (unless it's a Porsche or Bentley) may not be cost effective.
3. Ask for a higher deductible
   You can often reduce your annual premium by more than 15 percent if you increase your deductible. For example, increasing your deductible from $250 to $500 could reduce your collision coverage costs by 20 percent. Deductibles are paid before your insurance policy takes effect, so be sure to have an adequate amount of money set aside to handle the larger deductible when claim time rolls around.
4. Maintain good credit
   Good credit will not only help you in most of life's financial situations, it will also reduce the amount you pay for car insurance. Your credit history is an important factor in helping insurance companies determine the risk they're taking to extend coverage to you.
5. Take advantage of safe driver discounts
   You may be eligible for discounts if you maintain a clean driving record for a specified number of years. A clean driving record usually means no traffic tickets, no accidents, or other violations during a three-year time period. How do you qualify? Continue safe and defensive driving on a daily basis.
6. Take advantage of low miles discounts
   Many insurance companies offer discounts to those who drive less than a certain number of miles a year. If you drive less than a 10,000/year for example, you may qualify for a low-mileage discount. Ask your insurer if they offer this type of incentive. To take advantage of these types of offers, try to limit your driving as much as possible by car-pooling, or using public transportation.
7. Get a less "flashy" vehicle
   You guessed it - insurance companies rate cars on a risk scale. Sports cars and high-performance vehicles are categorized as higher risks due to their popularity among thieves, and due to the fact that statistically, people who own them tend to drive more recklessly.
8. Install safety devices
   Automatic seatbelts, anti-lock brakes, and airbags are just some of the safety devices that will help lower your car insurance costs. The other big factor is anti-theft devices, such as car alarms. More popular these days are tracking systems (i.e. Lojack, GPS) since they can reduce the chances of your car being stolen.
9. Combine your homeowners and car insurance under the same company
   Most insurers offer multi-policy discounts and will provide these discounts when you have two or more types of insurance with them. There are also discounts if you insure multiple vehicles under the same policy.
10. Ask about other popular discounts
    You may be surprised to find out the types of discounts your insurer offers. Examples include discounts for attending a "safe-driver" course, which may last only two or three hours. Other discounts available include AAA-memberships, airline mileage rewards, and gifts for being with the same insurer for a certain number of years.

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