Assess Your Needs

• The first thing you must do when comparing car insurance rates is to examine your actual needs, present and future. Some companies may have lower rates but they may not have what you actually need. Car insurance companies can offer many options for coverage, each adding or subtracting from your premium. But your personal situation can actually save you money. For example, there may be options for inclement weather damage that may not be necessary for someone who lives in a tempered climate versus another owner that lives near the east coast where storms and hurricanes can arrive throughout the year. Or you may want a company that specializes in covering teenage drivers if you have a child that will reach the driving age within the next few years.
  
  

Agent Vs. Company

• Decide whether you need to set up car insurance with an agent or directly with the insurance company. Agents can be very personable and easily reached in an emergency, getting you results faster should you choose to make an insurance claim. But working directly with a company can save you money since you won't be paying for an agent's commission. Direct companies may seem less personable, but if you change locations on a regular basis, it may be easier to set up insurance in your new location.
  
  

Shop The Rate

• You don't have to go with the first company that makes you an offer. Shop your quotes locally and online. The Yellow Pages (or the equivalent) may have a list of insurance companies that are dying to have your business and could cut you a deal. Companies like Progressive can help you compare your insurance rates with others in your area.
  
  

Discounts

• You could qualify for discounts that many insurance companies offer. Some companies offer discounts for good students. USAA is exclusive only to military members and veterans, offering relatively low rates. They also discounts for California residents, so your locale can make a difference. GEICO gives special rates to military members and government employees. Long term insurance deals may also put a dent in your premiums. State Farm advertises discounts for good drivers who don't get tickets or are involved in accidents for a specific period of time.