First, buy a car that will cost less to insure. A Chevy Malibu will typically cost less to insure than a BMW 740il. Remember the more "high performance" is in the car - the more expensive the insurance.

Second, don't get a ticket! Speeding tickets and other moving violations on your driving record will cause your insurance rates to go up. To defend against this consider taking a defensive-driving course. This may help your insurance rates if you have a tarnished driving record.

Third, the more miles you drive the higher your chances for an accident. You can effectively help your insurance rates by limiting the number of miles you drive every year (commuting mileage).

Fourth, where you live will effect your insurance rates. If you live in a dense urban setting then your chances of accidents go up; however, if you live in a rather rural area it may be a rare event to see another automobile. If this is the case your less likely to be involved in a fender bender or serious accident.

Fifth, your teenage drivers will always incur higher insurance rates. Some companies will give discounts if your teen attends a defensive-driving course or drivers education. Others offer discounts on rates if your teen gets A's and B's in school. One other way to help reduce your teen's insurance rates is to "assign" them to the least valuable car you have (it helps if the automobile is 10 years old or doesn't require full coverage).