Car insurance is a business. They want to make money. An insurance company makes it’s money by selling policies and hoping you don’t have to cash in. The odds are in the insurance companies favor, most people will never have an expensive claim. So how can we even the odds? There are ways. Low car insurance is obtainable if you shop smart and follow a few important tips.

Low car insurance rates are available at big name companies, but some of the lowest rates are found at lesser known companies. These smaller companies have to keep their rates low to stay competitive with the big dogs. The smaller companies may not offer frills like rental car reimbursement or roadside assistance, but they won’t charge you for them either. Big companies make it sound like they are throwing these helpful goodies in for free, but you are actually paying for them. If you want to go with a well known insurance company, ask for them to remove the extras from the policy and adjust the price accordingly.

Check you credit score. Believe it or not, your credit does affect your car insurance rates. If you have bad credit, you are considered high risk. Your rates will reflect this. Low cost car insurance is more available for people with good credit, but if your credit is hurting, all is not lost. Work on raising your credit score and watch those rates fall.

Several times throughout the year, insurance companies will compete against each other by lowering their prices in hopes of getting customers to transfer their accounts. Unfortunately for us, they do this relatively quietly, but we can benefit at certain times of the year by taking advantage of low car insurance rates. Shop for low car insurance during the peak sales events for cars. Mid summer and late December, car dealers are trying to get rid of older stock. Insurance companies want a piece of the money pie also and give great rates during these times. Ask for car insurance quotes from several different companies during this time and you will be pleasantly surprised at the savings.

There are a few other ways to save big. Paying your bill annually will save money. You won’t have to pay extra service charges for quarterly billing. Many companies fees are around four to five dollars each time a bill is sent. Typically insurance companies raise their rates every six months or so. this rate is minor to the consumer, but multiply it by 100,000 customers and the added revenue is substantial. You will save yourself a few dollars by skipping the bi-annual hike when you pay annually. Ask you insurance company what other discounts they offer. For example, taking a safe driving course, defensive driving course, and driving refresher course will qualify you for other possible discounts, sometimes up to 20%. Finally, occasionally ask for car insurance quotes from other companies to ensure you are still getting the best deal possible.

The recession has led to a number of things going on. The first is that many businesses are struggling. The reason for this is that most people are holding on to all of their money right now. Instead of spending like they usually would, the recession has a lot of people uncomfortable. They are noticing that the prices of most things are going up while their wages are going down or are just staying the same.

Things are tight and most people will not even consider a big money purchase at this time. This means car dealerships are struggling. Some have gone out of business. Others are trying anything they can to sell cars and keep their doors open.

If you are in the market for a car, or were even thinking about being in the market, this is the time you want to do some buying.

Take a stroll around the dealerships and see what you are interested in, but don’t buy yet. Instead take note of the vehicles you are interested in and find out what the insurance will cost.

While you may be able to get a great deal on the insurance, you also want to make sure you get a great deal on your auto insurance or you could be paying more than you want to be every month.

Shop around before you move forward on this plan. Go to an online auto insurance comparison website and find out just what you will pay to have that car covered.

Since all car insurance companies have different rates and qualifications, it is best to go to a comparison company in order to make sure you find the lowest rates for the coverage that best suits your needs. Using a car insurance comparison website will have all of the rates sent to you through an e-mail and you can pick and choose the one that is best for you.

Once you know what insurance will cost, it’s time to head back to the dealership. Don’t seem too anxious. If they think you know what you are there for and are willing to buy, they are not going to be as open with deals. Instead, you should seem like you don’t know if you really want to buy. You will be amazed to see how much wheeling and dealing they are willing to do if they think you may be willing to walk away from the lot without making a buy.