If you have not reviewed your auto insurance policy in the last few years, chances are you are paying too much for your coverage. There is a tremendous amount of competition in the insurance industry, so it pays to check your auto insurance rates on an annual basis. Chances are you can save money by switching insurance companies.

Insurers look at a variety of factors to judge your risk level and calculate the price you will pay for coverage. Some of these factors – like the job you have or whether you are married – are largely out of your control. But there are several factors that are in your control than can help you locate really cheap car insurance.

Keep your driving record clean. Nothing hikes up your car insurance rates like several moving violations on your driving record. Stay out of accidents or speeding tickets and you will see your rate drop.

The state you live in has a big impact on your insurance costs. It’s an unfortunate fact that certain states are just more expensive than others when it comes to car insurance rates. For example, if you are looking for cheap car insurance in New Jersey (NJ), it will be a lot more challenging than if you are looking for rates in a less populous state like Iowa.

Assume more risk in your coverage. This option is not for everyone, but if you are comfortable with the possibility that you will pay more out of your pocket in the event of an accident or theft, you can save a significant amount on your yearly premium. Talk to your insurer to see how much you can save by increasing your deductible beyond the standard $100 limit.

Ask for any discounts you may qualify for. Car insurance companies have a wide variety of discounts available to drivers, but they don’t always tell you about them. If you are a senior citizen, or have a low-risk profession, or are a member of a professional organization, you are probably entitled to a discount. Be sure to review all of your affiliations with your insurer to get the discounts that are coming to you.

Keep your insurance policies with the same company. Savvy consumers know that bundling your homeowners or renters policies with your car insurance policy can often save you money. If you are shopping for car insurance, be sure to talk to your existing insurer first, and then shop around.

Comparison shop for policies. In many states insurance rates are going up. However, studies have shown that consumers will spend hours and hours researching which car to buy, but rarely take any time to comparison shop for auto insurance. Spending an hour comparing rates from three or four insurers could save you hundreds of dollars a year, so this is time that is quite well spent.