Save Money on Car Insurance - A Few Helpful Tips Auto insurance costs for drivers differ, with respect to the state, the insurer as well as the policyholder. Insurance companies consider several factors to determine if they should issue an insurance plan to some customer, possibly at what rates. One such factor will be the possible risk posed by someone to the company. Many people wrongly believe that it may be the state that decides insurance rates. In fact, states only regulate rates, while companies get their own rating system that decides rates for people. Certain other factors that insurance companies consider while determining rates are as follows. There can be (source) many reasons for planning to minimize the original tariff of treatment of legally required insurance premium for your vehicle. Your household could be surviving on an extremely tight budget or maybe you are actually made redundant and even keep what cash you have for other essential payments. When you sign up for car insurance, among the queries about the proper execution has to be your address. Insurers need your reputation and address to call you, that is only one reason. Your ZIP code actually plays a serious role in determining your car insurance rates, since insurers compile regional and local statistics on sets from crime rates and auto theft to accident claims. It may not seem fair, but where you live can have a serious influence on your automobile insurance rates. It is also recommended that you undergo your insurance policy at least one time annually to just be sure you are adequately covered. When dealing with your policy, also ensure that you have adequate savings to cover your excess in the eventuality of an insurance claim. The excess can often be extremely high, especially in the case of theft or car-jacking so developing a savings account with plenty funds to cover these expenses is a really good idea. 3. Select a greater than standard deductible. The deductible is the amount of money you have to pay in the case of an accident. Increasing this from $250 to $1000 (most insurances use a default $250 deductible) you can get a discount all the way to 50%. If that seems a huge risk, then think of the following: if the discount is almost up to the deductible itself, you hardly lose any profit the entire sum, although you may have a car accident!