“Save $500 in auto insurance”
“Save 40% in auto insurance”
“Get auto insurance for just $19/month”

If you are skeptical as I am about such bold claims, you must wonder if there is truth whatsoever in this sort of advertising.

Reason 1: Because your car isn’t good enough.

Are you aware of the safety features that your car has? Does it have air bags, how many, and where? Does it have automatich seat belts? What kind of car alarm or anti-theft device is installed, if any? Does it have a certified tracking system?

Knowing these specifications about your vehicle(s) will help you on your way to saving as much at $500 in car insurance. The next consideration is the age of the drivers.

Reason 2: Because you are not the right age.

Taking into consideration the age of the drivers being insured is another way car insurance companies assess risk. Persons under the age of 25 pose a higher risk, and therefore increase insurance premiums. If you have a child that is a good student and of driving age, they may qualify you for a good student discount. This can offset the higher premium charge.

Another age that has available discounts are older adults. This is because they most likely will have a long driving history, which will vouch for their ability to drive safely and be financially responsible. Another group that factors in positive financial responsibility are home owners.

Reason 3: Because you don’t own home.

If you are a homeowner, you are in luck! Most car insurance companies have bundled policies for auto and home insurance. It is important that you look into the type of home you have versus the discounts available. The rate of savings is different with each insurance company. Doing your homework is essential.

Knowing what you can and should afford in your policy will help you determine how much your deductible should be, which is the next point.

Reason 4: Because your deductible is too low.

Your deductible has a great impact on your insurance premium. The higher the deductible, the lower the insurance payment. If you can afford to put away $1,000 and just leave it in the bank as a just-in-case, then you can benefit by agreeing to high insurance deductible. This will strategy will save you money in the long run, allowing you to save even more, instead of giving it away to the insurance company in the form of a policy payment.

If you’ve followed along all of the points above, you’ve heard me mention numerous times that insurance savings is different per insurance company. Therefore, it’s important to shop around and compare rates.

Reason 5: Because you didn’t compare rates and companies.

Failure to compare rates is a sure way to pay too much in your auto insurance. Company A can offer a 5% savings on a particular anti-theft device, which company be offers an 8% savings on the same exact device in the same exact car. But, you only researched the available discounts with Company A. You thought you were saving as much as you possibly could, but you actually were shorting yourself.

So how do you get the very best deal possible? It’s simple. You do your preliminary research for the top 5 companies. Then you narrow down your search by applying to those top 5, for instance. The reason you have to appy and give them your personal information is because not all policy are created equal. Your needs can be different from your neighbor’s. You want the best and the most discounts, and a custom quote will get you that.

Sometimes to get the best discounts, you have to ask for them.

Reason 6: Because you didn’t ask for additional discounts.

Insurance companies will not always divulge all of their available discounts on their websites. Just because the information is not on their web site, doesn’t mean they don’t exist. It’s important to get in touch with a qualified person that can provide you with all of the discounts available.

That way, you can go through that discount list and see which ones pertain to you. If you are not sure right away if you qualify for a certain discount, take your time to find the answer. This extra time can save you money in the long run.

After you’ve done your due diligence about insurance companies policies and available discounts, you are ready to sign on the dotted line, right? Not so fast. Have you considered what is your current credit score?

Reason 7: Because you don’t have good enough credit.

Yes, insurance companies will take a look at your credit history to make sure you are not a high risk to them. If you paid your non-insurance bills on time, you’ve just earned points with the insurance company. If you have had trouble paying your bills, then you’ve indicated to them that you are a higher risk driver.

So before you purchase your insurance policy, run your credit score to see if you have bad, good, or excellent credit. Be sure to check with all three credit beureas: Experien, Transunion, and Equifax. If you have any flaws in your credit history address them as soon as you can.

So, is it possible to really get steep savings in your auto insurance policy?

The answer is yes, provided you follow the tips in this article. Here are the tips again for the sake of convenience.

To take advantage of the available car insurance discounts:

Improve your credit score
Arm your car with the right security devices
Increase your policy deductible
Verify the drivers you have on the policy
Get an auto and home insurance policy bundle
Compare rates among different companies
Take advantage of as many discounts as you can