As insurance professionals, we are often asked for tips and tricks to keep the cost of insurance premiums low. While there is no sure way to guarantee a specific price, there are ways you can reduce your insurance premium to the lowest possible rate for you. By this, we mean that costs may not the be same across the board for you and your friends or family members. A lot of variables are taken into account when it comes to your insurance cost.

Here are 5 tips to reduce your insurance premium.

#1.) Shop around, ask around and do research

Prices may vary from company to company, so it’s worth it to shop around. Always try to get at least three quotes before making a decision. Make sure these quotes are from different types of insurance companies; some will sell their insurance through their own agents, some will sell through independent agents who offer policies from a variety of insurance companies and some companies do not use agents, they sell their insurance directly to the consumer over the phone or internet.

Also, ask your friends or relatives for their recommendations and look into consumer complaints for the companies you are interested in.

#2.) Check insurance costs before buying a car

Car insurance premiums are different for all types of cars and are based on the car’s price, the cost to repair it, likelihood of theft and it’s overall safety. So, before you buy a new or used car make sure you are able to afford the insurance costs. To help you decide what car to buy, you can get information from the Insurance Institute for Highway Safety.

#3.) Raise your deductibles

Deductibles are the amount of money you pay before your insurance kicks in. For example, if your deductible is $500 and you get into an accident, you will pay $500 and insurance will cover the rest up to your policy limit. Increasing your deductible can save you up to 40% on your insurance, depending what you increase it to.

#4.) Reduce your coverage on older cars

If you have an older car and it is worth less than 10 times the premium, consider reducing your auto insurance because you car isn’t worth enough to cover. See what your car is worth on Kelly Blue Book or ask your auto dealer or bank.

#5.) Bundle your home and auto insurance with the same agent

Many insurers will give you a break if you buy two or more types of insurance. You may also get a reduction if you have more than one vehicle insured with the same company.

#6.) Good credit

Having a good credit history can cut your insurance costs. Most insurers use credit information to price auto insurance policies because the better your credit, the more responsible you are and less likely you will report a claim. To protect your credit standing, pay your bills on time and keep your credit balances as low as possible.

Price is not King

Your premium is and should be a driving factor in your final decision but it should not be the only factor. Do not forget you are buying insurance for an unexpected and potentially catastrophic event. If you’ll need to use your insurance, you’ll want to make sure it gives you the coverage that you need.

It never hurts to ask!

As always, never be afraid to ask about discounts when searching for affordable insurance options. Your insurance agent, or the agents you are looking into using, can help you figure out what discounts apply to you. For example, you may receive a discount for having an alarm on your house and car, or for having no accidents in the past 3 years.

The key to finding the most affordable insurance is to do your research and work with an insurance agent that best fits your needs.