Save on auto insurance rates

Allstate Corp., the largest U.S. publicly traded seller of auto and home insurance, experienced a 48 percent loss in underwriting income from auto coverage, Insurance Journal reported. Tom Wilson, Allstate's chief executive officer, said there are more drivers out on the road now due to better economic conditions. The increase in drivers on the road is leading to more accidents. To account for the surge in accidents, Allstate, along with other insurance providers will be raising auto insurance premiums.

While everyone has their own suggestion for what you can do to reduce your rates, not every recommendation will have the same effect on every driver. For some drivers, dropping collision insurance - while a guaranteed rate reducer - only works for people who do not need to replace their car, or have the on-hand cash to buy a new car.

Auto rates are expected to increase for a majority of drivers, so here are four tips for reducing auto insurance premiums:

1. Count every mile
If you've recently gotten a new job closer to home, or you've cut back on your weekend driving excursions, you might be able to get a deduction in your premiums. Since insurance companies report how many miles you drive a year, provide documentation indicating a decrease in your average yearly mileage.

2. Split your driving
If you have two vehicles, spend more time driving the fuel-efficient model rather than the bigger or older model. Tracking how much time is spent in each vehicle, as well as how many miles each vehicle travels, can decrease your insurance premiums if you use the more fuel-efficient model more often.

3. Take a look at your credit report
A great credit report can reduce your insurance premiums by up to 15 to 20 percent. Despite consumer advocates claiming that fiscal responsibility is not really an indicator of driving ability, insurers insist on using the metric when determining rates. However, since no states let insurance companies solely use credit reports as a basis for setting a policy premium, you should shop around since insurers will weigh your credit score differently.

4. Utilize device discounts
A variety of gizmos and gadgets exist that can reduce your premium rates. Passive anti-theft devices can often provide a 15 to 20 percent discount, while anti-theft measures coupled with vehicle-recovery systems can increase the discounts to 25 percent for some companies.

CoverHound provides cheap auto insurance from its easy-to-use website.

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