In America, rates on auto insurance vary from company to company and even from policy to policy depending on the coverage you choose. Because their is a lot of variation from provider to provider it is well worth your while to shop around and do some in depth research. There are many sources you can use to find information about American auto insurance providers. Besides contacting companies directly on the phone or online, your State will have an Insurance Department that can provide useful information as well.

Much as in other areas of the world, American auto insurance is designed to protect drivers from suffering a financial loss or from being held liable if they cause an accident. When choosing an insurance company for your auto coverage you should first consider the financial strength of each company. By checking with insurance rating companies like A.M. Best or Standard & Poor's you can make sure you are dealing with a company that you can depend on in the long run.

Some insurance companies sell policies through independent insurance agents. These independent agents represent several different companies and can provide a lot of good information about multiple providers. Other companies have their own branches throughout the country that are manned by their employees. While others simply market their policies on line or over the phone exclusively.

Besides price, you will also want to consider other factors. Does the company you are considering offer good service, answer your questions clearly and have a good reputation for satisfying claims. You may be able to get information about specific companies by checking with the State Insurance Department. It can also be helpful to ask friends and neighbors about their experience with different companies and get referrals for the companies they liked the best.

When it comes to getting the best rates on your auto insurance policy, raising the deductible is one of the first considerations. A deductible, which is the amount that you would pay out of pocket if you were in an accident, reduces the risk to the insurance company of having to pay a claim for a small accident. The higher the deductible you are willing to pay out of pocket, the lower your insurance rates. You do have to pay this out of pocket though, so you would want to make sure you have access to an amount equal to your deductible.

Another way to save on car insurance is by dropping collision and comprehensive coverage on older vehicles that are paid off. A good rule of thumb is that if the vehicle is worth less than 10 times the premium you should consider dropping full coverage and switch to a more limited policy.

You may be able to save on insurance by getting multiple policies from the same company. Many insurance providers give a price break if you buy multiple policies (i.e. auto insurance and homeowners insurance). Insuring multiple vehicles may also get you a discount. I wouldn't take this for granted though. You may save money buying from different insurance companies, compared to a multi-policy discount if you shop around.

In addition to the vehicle and your driving record, insurance companies may also consider your credit history when setting your premiums. If you have a poor credit history you will usually end up paying more for your insurance. You can improve your scores by paying off any overdue accounts, making all payments on time and correcting any mistakes on your record that may be lowering your credit scores.

Another discount to ask about if you carpool or don't drive a lot is the low mileage discount. Not all companies offer it, but enough do that it is something you should check on if you fall in that category.

If you have been with an insurance company for a long time and have a good driving record take a minute to check with them and find out if they have a discount for long term customers. If you have a young driver on your policy check on any good student discounts they offer. If your young driver is away from home at college without access to a car they may also qualify for a discount.