Remember when you got your first car and thought you were the coolest person ever to get behind the wheel of an automobile? You saved for a down payment. You budgeted for a monthly payment. You factored in gas. You forgot about car insurance. You borrowed money for gas. You got an extra job.

Be sure to factor in the cost of car insurance and whatever you do, don’t pay more than you have to. Here’s how to get the best deal on car insurance.

Understand How Pricing Works

You’ve probably seen the commercials where so-and-so saved $8 million by switching to a particular insurance company. You’ve probably also seen the ads telling you to shop and compare at such-and-such website. You may wonder how come some people pay less at Insurance Company X while others pay less at Insurance Company Y. It’s not just about the quality of customer service, the speed of claims or the company’s financial stability.

Companies weigh different factors in pricing their insurance. Some weigh driver safety more. Some weigh a customer’s credit score more. Some weigh the vehicle safety rating more. The problem is you don’t know which company weighs what. That’s why it makes sense to check out insurance price comparison websites. Here are other suggestions for lowering your car insurance premiums:

• Improve your credit score. Insurance companies don’t make money immediately after you purchase a policy. They need you to keep paying on that policy. It, therefore, behooves them to bring on customers who are more likely to make payments. Customers with a higher credit score are more likely to pay, so they give them better rates.
• Look at the cost of insurance before you buy a car. Some cars cost more than others. Some cost more to replace than you realize.
• Pay the premium in full. Most companies charge an administrative fee for monthly installments. They can also cancel your coverage with very little notice if you’re late with a payment.
• Safe drivers pay less. This is a no-brainer. The less likely your are to get in an accident, the less money you’re going to pay for insurance.
• Investigate company incentives. If your child gets good grades, she may qualify for a discount. If you can prove regular oil changes and maintenance, you may qualify for a discount. If you buy homeowner’s or renter’s insurance from the same company, you may qualify for a discount. If you hold a certain job (scientist or teacher, for example), you may qualify for a discount.
• Insure yourself. Those with a 3-6 month emergency fund can raise their insurance deductibles without worry and lower their premiums.
• Install safety devices. Insurance companies don’t like it when you get your car stolen (nor do you, probably).

Well, what are you waiting for? Start saving!