The car insurance industry is more competitive today than it ever before. This amounts to excellent benefits for consumers, as long as you know how to shop smart and negotiate. Car insurance rates vary depending how much coverage you get, your driving record, what kind of car you are insuring and any special discounts that you may be eligible for. In order to maximize your savings on your car insurance rates, be sure to follow these guidelines:

1. Compare Car Insurance Rates Before Buying a New Vehicle

Any savvy shopper knows that the true cost of owning a vehicle goes above and beyond the amount you pay at the dealership. Certain cars are more expensive to insure. Car insurance companies determine premiums based on the car's price, its overall safety record, the likelihood of theft and the cost to repair it. For example, a foreign sports car will have much higher car insurance rates than a low-key domestic sedan that can be serviced at almost any garage. Factor this into your decision before you buy.

2. Get a Higher Deductible

Higher deductibles will expose you to greater liability if you are in a car accident but it will save you money on your monthly premiums. If you can go for several years without an accident, bumping up to a $1,000 deductible can easily pay for itself in the long run.

3. Look for Special Discounts

Your situation may qualify you for special car insurance prices. For example, if you are an infrequent driver, have an excellent driving record or belong to a professional association, you may {{{be able to get a significant reduction in your monthly premium without cutting back on your coverage. Go ahead ask your car insurance company if you qualify.

4. Consider Reducing Coverage on Older Cars

All states require that you have a certain level of car insurance in order to drive legally. However, if you have an older car with a low Kelly Blue Book value, then it may not be cost effective to have it fully covered. You can save on monthly costs by reducing your insurance.

5. Shop Around

The absolute best way to find competitive car insurance rates is to shop around. Even if you already have a car insurance plan, you may be able to save money by switching. With easy-to-use resources readily available on the web, you can quickly survey the current offers from local car insurance companies as well as nationwide insurers. In fact, drivers that have gone for years with the same plan are most likely to be overpaying for car insurance. Seeing what other companies have to offer certainly can't hurt – especially if you do it without leaving the house.