I do not doubt that it is the cost of gas, not car insurance, which is hurting your pocket book. However, getting the cheapest car insurance is a good way to take away some of the pain at the pump. Yet, finding the cheapest car insurance out there is often a difficult task. There is so much noise about what insurance company is the best or which offers the cheapest quotes.

I’ve learned that generally the cheapest car insurance companies are the ones who specialize in bringing you the lowest prices. This advice may sound ludicrous but it’s true. The larger companies who have always had expensive rates rarely adjust their insurance rates to accommodate us cheap folks. Why? Because they realize that us cheapo’s won’t stay with them once they hike our car insurance rates.

One way to find cheap car insurance is to fill out the form above. This form searches through the different car insurance companies to find you the cheapest deals out on the web. Believe me when I say this will save you tons and tons of time of searching.

There are also little things you can do to bring down your insurance. Below I have listed out several really good tips. I hope these help, because in our day and age paying as much as we do in gasoline every penny counts! ~Harrison

Tip: Good credit means cheaper car insurance

If you have solid credit, your monthly car insurance rate will be lower. Just about all car insurance companies check out your credit report. Wondering why your credit score has anything to do with getting cheaper car insurance? Well, research has proven a direct connection between what your credit history says and what your actions are going to be if you get into an accident. Most likely if you show an unstable credit history you have a higher likelihood of filing a claim. On the flip side, auto insurance companies also know that if you are good at paying your bills on time and have established stable credit history, that you are less likely to get drunk and find your car hanging from a power line (see picture below). To determine whether you get cheap car insurance they use your credit score to create your “insurance risk score.” Your insurance risk score is a big indicator on whether you are going to have expensive or cheap auto insurance. You can image that car insurance companies do not offer you your insurance-risk score. However, we do know that your credit report mirrors this score. If your credit report shows unusual activity it might be wise to wait a month or two to have it return to normal before trying to get cheap car insurance. If you are a part of a growing number of people who have shaky credit, clean up your credit and then go shopping for car insurance companies that can offer you cheaper insurance than what you are currently paying.

Tip: The type of car you drive effects how much your premium will be.

Auto insurance companies have a score card for all car models and makes. Most use a system devised by the Insurance Services Office, which starts with the cost of the vehicle and then factors in safety and theft data. Cars are given a rating from 1 to 27, and the higher the number, the higher your premium. Good luck in getting your hands on the exact score that car insurance companies use. Yet, thanks to the internet there are tools out there can give a good estimation.

Tip: To get the cheapest car insurance pay for a full year to avoid installment fees.

Not all of us can afford to pay for an entire year’s of car insurance, but if you can you will discover that you will have cheaper car insurance than your buddy who pays on a monthly, quarterly, or bi-annual basis. Breaking up your payments is referred as “fractional premium” and charges are often added to the total cost when you don’t pay in one annual lump sum. Just about every car insurance company charges for admin fees when breaking up the payments. Unfortunately, the more payments you make in a year’s time, the more those fees add up. It is important to ask about administration charges when you plan on paying in installments. It may be worth paying in installments if the fees are small enough. It is important to remember that your insurance companies WILL cancel your car insurance if you decide to be late on your payment. It is also not uncommon for an insurance to give minimal notification when they do terminate your policy. Luckily, most companies have automatic withdrawal so that you are not late in giving them your hard earned money :(. Though it will make the process a lot easier and save you a few bucks if you can pay the premium up front.

Tip: When you find the cheapest car insurance be sure to officially cancel your auto insurance policy with your old provider.

Most people think that if they stop paying their car insurance that this will terminate their policy, which is true. However, there is one glaring negative consequence when done this way. By not notifying your old car insurance company they will cancel your policy for nonpayment. This nonpayment will go on your credit report, which was discussed earlier of why you don’t want negative feedback on your credit report. Be sure to call your car insurance agent and let her know you have found cheaper car insurance (oftentimes your car insurance agent will see if she can beat the deal you found). When cancelling give specific dates of when you are switching, or you might end up uninsured until your new car insurance policy takes place. Often you have to show to your former car insurance company that you have new (and cheaper) car insurance. If you have financed your car through a dealership, be sure update the information on your new car insurance policy, purchase contracts most often require proof of coverage.