When getting a new car insurance policy, there are several things that you should know before you decide to sign on the dotted line. There are many factors that go into determining what car insurance rates are.

If you are a starter, you should take care of the fact that the kind of car you drive has a lot to do with the car insurance you have. If you have a minivan or sedan, you are going to get better rates than if you drive a sports car or any sort of off-road vehicle.

You should always shop around to all the different auto finance companies, for each company will offer a different rate. Ask them if they offer any kind of discounts, sometimes if you have more than one insurance with an agency, it will end up costing you less for all of them in the long run.

Ask about discounts that involve equipment on the car itself. Many auto insurance rates are less for those that have anti-lock breaks, air bags, automatic seat belts, etc. You can also ask about having a higher auto insurance deductible, for that will save you money as well. You will end up paying more if you have an accident, but if it isn’t your fault, you will have saved the money on the car insurance premium.

Ask about car loan rate involving those that have a good driving record, or if you have taken any sort of classes that show you how to be a defensive driver. You should get discounts for both. Also, check to see if you are a student and get good grades, sometimes you can get a discount for that as well.

Check to see how old your car is, for if it is older and not worth the price of the extra auto insurance coverage, drop the collision or comprehensive for you won’t make the money back if you are in an accident and the car is totaled, or needs extensive work. Finally, pay your bills on time, for an adverse credit score will increase your payments as well.