Auto insurance is large part of being a responsible vehicle owner. However, auto insurance policies seem to be written in the most confusing terms possible. This article can help you to better understand what all of those terms mean. By understanding the terms of the auto insurance world, you will be a more informed consumer. A great way to reduce your insurance bill is by lowering your mileage each year. You may find that your insurance company will lower your rate if you lower your annual mileage. You should review all after-market equipment you intend to install on your car with your insurance agent, so that you can be sure it gets covered properly. The retail value of aftermarket rims might be $1000, but if they dont actually add $1000 to your cars overall value, then it could have negative insurance consequences. The person who drives the car on the car insurance policy is the only one being insured - you should always remember that. Often times, what can happen is this; a person will allow someone else to drive their car. If an accident occurs, the insurance company wont pay the claim. You can opt for coverage that will allow other people to drive your car, though you will have to pay a little more for that. In order to keep premium costs down, do not swap vehicles between different members of the family. You will get a lower premium if you only have one name on each car. Try to pay your car insurance on an annual basis rather than monthly. Insurance agents add three to five dollars to monthly bills. This can quickly build up. This can be a burden in addition to your monthly expenses. Stick to this simple rule: make as few payments as possible. Choose a higher deductible, and you will pay less for your insurance. This strategy carries some risks, but as long as youre willing to set aside money each month to cover the cost of your deductible in case of an accident, it can be an excellent way to cut costs. A higher deductible means a lower premium. You should trade in your car for a model that is less sporty. Insuring a sports car costs significantly more than insuring other vehicles. Low-profile cars are the better option. Generally, if the car has a big engine, you can expect to pay higher insurance premiums. In addition, sports car are stolen more often than other cars, driving the insurance rates even higher. Purchase property damage liability when you buy your car insurance. Any damage to property made by you in an accident is covered by this level of insurance. Most states require this liability. Buying property damage coverage will protect you from costly lawsuits that might follow from an accident. Ask your auto insurance agent for a comprehensive list of the money-saving opportunities their company provides. You should note every discount that might apply to you. Youll want to get the best rate possible. If you drive less than 7,500 miles annually, you may be eligible for an insurance discount. So, driving less is a good way to reduce your insurance costs. Dont forget to figure in the insurance premium you will pay on a new car. Auto coverage offered by insurance companies can be less expensive on a safer automobile. Sport cars tend to lack the safety that bigger family cars have. When purchasing a car, always account for the cost of the insurance policy to make sure its something you can afford. Try getting rates from multiple companies before picking one for your car. If you want the best rates, youll need to do a little shopping. If you want to get a better insurance rate, be sure to make sure you have the highest FICO score possible. Auto insurers will check your credit before pricing your policy. Surprisingly, studies have extra resources shown that those with lower credit scores get in a higher amount of accidents. This has prompted insurance companies to consider credit scores when calculating premiums. If you have good credit, you can get good deals on insurance. The information presented in this article has, hopefully, increased your knowledge, which can guide you in making more informed decisions regarding vehicle insurance. Information allows you to make wiser decisions. If you think your family and friends could also benefit from this advice, then by all means share it!