In these tough economic conditions everyone is looking for ways to cut back and save money. Insurance is an intangible product Therefore, the service isn’t realised until a claim is made. The unfortunate fact of this matter is many people are trying to save money by canceling their insurance policies. This isn’t a smart more as it can cost you thousands of dollars in the future should you have an accident.

Following the advice provided in this article and you could save yourself a whole lot of pain and anguish in the future.

Install a car alarm. Car insurance companies will often reduce your premium if you install a car alarm or demobiliser. If you have recently installed one, let your insurance company know immediately.

Avoid accessorising your car as it will increase the chances of it being broken into or stolen. Modification or accessories include mag wheels, expensive stereo systems and DVD and video gear.

Maintaining a clean credit history can help reduce your monthly premiums too. Insurance companies claim they have found a correlation between bad credit and risk. Request a credit check on yourself and dispute anything that is incorrect. Rectified this immediately and notify you insurance agency once it has been deleted.

Shop around for quotes from at least three insurance providers. Ask them whether you qualify for any discounts. If you don’t really want to change from your current insurance company, tell them that you are thinking of changing providers unless they can give you a better deal. This can sometimes work especially if you have all your other policies with them.

Pay your premiums annually opposed to fortnightly or monthly. This helps to reduce the administration costs for the insurance company and they generally pass on the savings to customers.

There are many things you can do to help reduce the amount you pay for car insurance. Although it may sometimes seem that insurance is just another cost, remember that it protects against substantial loss should an accident occur.