We all want to save money, but most of us do not want to sacrifice qualify. We have bought something at a bargain, and then later had reasons to regret our purchase because what we bought was jut not of the highest qualify. The same can certainly be true of auto insurance coverage. Of course, we want to shave our premiums when our budget is tight. But we know that we need good coverage, or that cheap policy will cost us more in the long run! So how do we get great coverage at the lowest possible rate? Well, of course I have a few ideas.

For one thing, you need to understand how insurers calculate your premium, and also understand that not all companies use the same rating scales. Some major insurers really look at an applicant's credit score. So a driver could have had a long and clean driving history, but still not get the best rate because of some late payments, a bankruptcy, or home foreclosure. It does not seem fair, but insurers keep statistics, and as a whole, they argue that people with poorer credit reports tend to make more claims.

Next, look at your driving history, or lack of one. Younger drivers, especially teenage males, tend to get dinged with a higher premium rate. However, approved drivers education or driver safety classes can earn a sizable discount with some insurers. These discounts can also help older drivers who have had a recent accident or traffic ticket.

If you are shopping for a new car, make sure you consider your auto insurance premiums when you calculate your budget. Some new cars, with installed safety features and anti-theft devices, can actually lower your premiums. However, if you are interested in purchasing a sports car, expect your premiums to rise. Just keep in mind that you should find out how much your premiums will change before you decide which car to buy. Sticker shock is one thing, but auto insurance sticker shock after the car purchase can really ruin your budget.

If you need to lower your premiums, you may consider raising your deductible. The premium difference between a $500 deductible and a $750 deductible may be hundreds of dollars a year. Make sure you can afford to pay that higher deductible if you do have an accident. In fact, it would be a great idea to take some of the savings and, either, put it aside or pay off some credit cards. That way, you will be able to come up with some cash or credit in an emergency, and you are bound to save money in the long run!