A common misconception about car insurance is that people pay whatever the provider says. While it is true that you pay the premium agreed on, that does not mean you should pay more than your fair share. Fortunately, there are ways you can still get great coverage but without spending a fortune.

Especially with everything going on in the world right now, many people have less money to spend, including necessities like car insurance. That makes this a perfect time to find ways to save money. Even if not affected by the economy, you can always put the money saved on car insurance toward something else.

For saving on automobile insurance, start with these five options.

1. Choose the Right Insurance Company

While that might seem obvious, a lot of people go with the first company they come across only to pay higher premiums. So, make sure you spend the time needed to compare car insurance available through several sources. Not only is this a great way to review premiums but also to look at the types of policies, deductibles, discounts, coverage areas, and more.

Keep in mind that you can easily get quotes by using a free online comparison tool. Another option is to visit the websites of insurance companies, give them a call, or, if possible, visit a few in person. That will give you more detailed information to help you make a choice.

2. Select the Right Policy

Car insurance comes in many different forms. To save money on a policy, be sure you select the right one. For example, liability insurance is something people typically get when they own an older vehicle that does not have much value. However, the policy does protect other people and property if you are ever an at-fault driver in an accident.

Say your vehicle is only worth $1,000. At that level, it would make no sense to spend $100 or more each month for comprehensive or collision car insurance. Then, with the deductible, you would ultimately pay out more than the value of the vehicle. To save money both short- and long-term, always select the appropriate policy.

3. Take Advantage of Discounts

Most companies offer a variety of car insurance discounts. Each of these has a percentage value that goes toward the premium. That means the more discounts you qualify for, the more money you save. While some insurers have just a few discounts, others have a lot. Therefore, it is worth seeing what discounts companies offer to help lower your car insurance premiums.

Discounts exist for good driving like Allstate’s Drivewise program, which becomes applicable if you avoid causing accidents or getting speeding tickets. There are also discounts for having good credit, driving a vehicle with safety and anti-theft devices, and for low-mile usage. Discounts even exist for student drivers who maintain good grades.

4. Consider Memberships

Some insurance companies offer discounts for policyholders involved in certain organizations. If you have a membership with AAA, AARP, wholesale clubs, alumni associations, and many others, you will spend less on car insurance. Other options include recreational organizations, honor societies, sororities and fraternities, business groups, and military organizations.

5. Increase Your Deductible

This is yet another way to save money on your car insurance. Whenever someone files a claim, they must pay a deductible for the policy to go into effect. Keeping this as high as you can has a direct impact on what you spend for automobile coverage. Remember, you can always change the deductible on your policy. That gives you the freedom to make changes as needed.

Spend Less for Great Coverage

These five ways to save money on car insurance do work. However, you have other options to consider. For example, bundle policies of assets you want to protect. That means one insurer writes different policies. Ultimately, a single company provides coverage for your home, car, boat, RV, motorcycle, business, etc. Something as simple as bundling will save you significant money on premiums.

It is worth mentioning one additional option. That involves paying your insurance premiums yearly as opposed to monthly. While the amount of money saved is not significant, this is one more way to lower your insurance cost. When you combine several discounts, you spend dramatically less money without compromising on the coverage.

Since you need insurance to drive, why not make the best of the situation? As stated, make sure you choose a good insurance provider. That alone will make a huge difference.