Does it Take a Caveman to Get a Better Rate on Your Auto Insurance?

I have a confession to make. A while back, I was lured into applying for a free rate quote from Geico by their slick - and memorable - advertising. They hooked me with the caveman. I'm not ashamed to admit it. But, much to my surprise, their quote didn't live up to the hype. In fact, Geico's rate quote was $50 per month higher than I was paying with Nationwide Insurance. My first thought was that obviously their advertising was better than their rates. However, after doing some research, I learned that if I had explained the situation better and asked the right questions, I might have gotten a better rate quote from Geico.

Here are a few tips I've learned for getting the best car insurance rate possible:

1. If you're under 24, and/or a student, try to get on your parent's insurance policy. New drivers and new policyholders always get higher rates than everyone else. If you can piggyback on Mom or Dad's good driving record, then do it.

2. Now I know this seems cruel and contradictory, but if you're a parent who is struggling to make ends meet, then try to keep your children off your car insurance. If you absolutely can't afford an increase in your car insurance, it's best to let your children pay higher rates than for you to take the risk of their learning curve affecting your rates. Unless your teenager is an especially good driver, you're better off telling them to pay for their own auto insurance policy.

3. If you own a home, get your auto insurance and home insurance through the same company. In my case, that's exactly why Nationwide was cheaper than Geico. Nationwide offers a special "package deal" to customers that have both auto and homeowner's insurance through them.

4. When you're comparing auto insurance rate quotes, know your policy and don't be afraid to ask questions. If you currently have a $500 deductible and XYZ amount of coverage, compare that to another company's quote and see which is the better deal. If they're not offering a better deal, tell them the deal you currently have and see if they have a plan that's comparable. Don't always go with the first auto insurance plan they suggest.

5. Don't buy more insurance than you need. If you have a car loan, it's required that you carry full coverage auto insurance. Otherwise, it really depends on the value of your car and how easily you can replace it in case of an accident. If you're driving a car that's paid off and only worth around $2000, is it really worth it to have full coverage? Liability coverage will take care of someone else's car if you total yours, and the chances are that even full coverage won't pay you enough to get a new car without taking on some sort of car payment. You have to decide for yourself if the extra monthly cost of full coverage is worth it for a car that is already paid for. Unless you really need every cent you can get for a down payment, or your car is worth more than what you'd spend on another car, the chances are that you're better off carrying liability insurance.

6. Last, but not least, try to keep your driving record as clean as possible. I know this seems like common sense, but you'd be surprised how many people think that a little speeding ticket here or there won't affect their car insurance rates that much. Speeding tickets and traffic violations can affect your auto insurance rates dramatically. Keep track of your driving record, and if you have older offenses that should be expunged, make sure they are. Just like you wouldn't assume that bad credit falls off your credit report without checking, don't assume that driving offenses fall off your record as well.

After trying all of the above tips, then spend some time filling out rate quotes online and don't be afraid to try several different companies. If you want to simplify the process, then try sites like http://www.insurance.com/ and http://www.netquote.com. With a little time and effort, it's easy to find the best rates for car insurance possible for your situation.