Car insurance can be confusing. Most insurance companies calculate their own rates and premiums based on complex algorithms that take many factors into account. Thankfully, there are some simple tips you can use to guarantee lower rates across the board when obtaining auto insurance quotes. Here are seven ways to save money.

1. The most important factor for auto insurance rates is your driving history. Drivers who have been involved in collisions will inevitably see higher rates than those with spotless driving records. One accident should not wipe out your bank account, but several accidents can hurt. By law all driving records renew every seven years. That means if you avoid moving violations, you will see your rates improving within a couple years.

2. Insurance companies also factor neighborhoods into auto insurance quotes. It is a statistical fact that cars tend to be damaged and stolen more often in high-crime areas. Most insurance companies want protection of such elevated numbers. Moving to a better area can have a positive effect on your premiums, even if everything else about your life remains nearly the same.

3. Credit scores make a significant difference as well. This may come as a surprise to some people. This makes sense when you consider that insurance companies are actually betting on your overall responsibility, including your ability to make the annual premium payments. Good credit can get you discounts of 20 percent or more. So make sure you take care of your credit.

4. Next, the car is an important component of auto insurance calculations. Newer cars and more expensive cars will cost more to insure and maintain over time, while older makes and models represent far less expense. There is some truth that your car's color and amenities can affect the premiums too. Red sports really do get into more accidents than gold minivans.

5. The best way to save on car insurance is to do your homework and seek estimates from as many carriers as possible. Once you have all the information at your fingertips, you may be able to negotiate more favorable rates from your insurance company of choice.

6. You should also buy home or life insurance in addition to auto insurance with the same company. This will likely get you better rates by combining several policies.

7. Finally, take action and use an insurance quotes calculator to see if you can save money by changing companies. This is something you can do right now.

If would like to know if you are paying too much, go to Insurance Quotes Shop and use their Quick Quotes calculator. It takes about five minutes to get multiple quotes from several companies. I saved over $200.00 by using this tool and switching companies. The calculator is free to use and there is no obligation. Click here.