Accessing car insurance rates that meet your budget is key to reaching your financial goals, and can easily be accomplished with just a few simple steps.

Credit plays a key role in most insurers’ rates (with California, Hawaii and Massachusetts prohibiting it entirely). Furthermore, your vehicle make and model as well as annual mileage have an effect on quotes.

Get Multiple Quotes

Car insurance rates can differ widely from one provider to the next, making comparison shopping imperative. Different factors such as your age, location, vehicle type and credit history could all impact your rates; also keep in mind that insurers use different algorithms when setting rates so whichever company was cheapest in one area may not necessarily be so in another area.

As part of your homework, it is also a good idea to get multiple quotes at the same time because the price you pay can change as your circumstances evolve – such as moving or getting married; your rates could potentially go up or down depending on this change in life events. Bundling home and auto policies together is also often a cost-cutting move and should be seriously considered for saving money.

Get multiple quotes before settling on one for something that’s required by most states, just remember to opt-out of any further communication from marketers once finished so as to prevent being harassed further.

Look for Discounts

Many car insurance providers offer discounts that can significantly decrease the cost of your policy, according to NerdWallet research. NerdWallet found that drivers who take advantage of such offers could save hundreds of dollars every year or more by taking advantage of them. Popular providers like GEICO, State Farm and USAA provide such discounts. Additional savings may also be possible if drivers own older cars, are military personnel or have completed advanced driving courses – they even reduce rates if multiple vehicles are insured under one policy with them or purchase home and auto coverage through them!

Personal factors play an integral part in calculating your insurance rate, so it is wise to research all available discounts when comparing policies. Notifying your insurer of any changes that could help save money–for example joining an organization offering a discount, moving to an area with less density or starting public transportation as an alternative means of transportation–so they can apply the appropriate savings immediately.

Cut Down on Coverage

Many bargain shoppers search for discounts when purchasing everyday items like frying pans; however, few consider taking this same approach when purchasing auto insurance policies. To reduce costs and lower premiums further, consider cancelling coverages you don’t require or increasing deductibles as ways of cutting back costs and save on premium payments.

Your vehicle type and value also have a substantial effect on rates; sports cars typically costing more to insure than sedans. Your credit score does matter too — although its impact will differ depending on both state and company policies.

Location and driver age both have an effect on the cost of your policy. Young drivers typically face higher rates than adults over 25, until rates start increasing again around age 65.

Shop Around

People tend to shop around for better prices on everyday goods like frying pans and smartphones, yet only 25 percent of car insurance customers actually compare quotes before signing their policy. Comparing quotes could save drivers hundreds of dollars both immediately and over the life of their policy.

Note that each company employs its own underwriting criteria when setting rates, which means the same set of factors will be priced differently by each carrier. To accurately compare costs between carriers, compare identical coverage options and limits.

Many carriers also provide discounts based on specific driver characteristics, like safe driving or loyalty. You can learn which discounts you qualify for by speaking to your current carrier directly or using online tools like Gabi’s. Bundling policies is also an opportunity for savings; Gabi customers who bundle policies can save an average of $961 annually!