If you want to save money on car insurance, it's important to understand how the industry works. Car insurance companies base their rates on a variety of factors, including your driving record and history as well as where you live.

They also consider other measures such as the type of car you drive and how many miles per year you drive it. However, there are ways to get cheaper coverage than they offer or at least find discounts to help reduce your monthly payments.

Get several quotes

The best way to get the cheapest car insurance possible is to get several quotes from different companies. It's easy and free, so there's no reason not to do it!

Once you've gathered all of your quotes, compare them. This will give you an idea of how much each company charges for similar coverage levels. You can use this information when negotiating with other companies later on (more on that later).

If one quote seems especially appealing, use it as a benchmark when calling around—if one company offers $300 less per year than another, ask about their rates after making sure that its coverage is comparable to what others are offering in terms of liability limits and deductibles.

Asking about discounts will also help save money: Some insurers offer discounts for good student drivers or accident-free drivers; others may offer lower premiums overall if they believe you're less likely than average consumers at large would be likely risk factors such as speeding tickets or DUIs.

Ask about discounts and credits available to you, such as good student or accident-free driver discounts

If you're married, ask if your spouse's insurance company offers multi-car discounts. If so, it might be worth switching over so that all cars are insured through the same company. Similarly, if any of your family members drive—even if they don't live with you—it could make sense for them to be on the same policy as well.

Students who maintain at least a B average may qualify for a good student discount on their car insurance premiums every year after graduating high school until age 25 (or 26 in some states). In addition to being financially beneficial, this can help demonstrate responsibility when applying for other types of insurance later in life, like a homeowner or renter's coverage—or even life insurance policies!

Another common type of discount is an accident-free driver discount; this applies when someone has never been involved in an accident while driving before and continues driving safely throughout their lifetime without ever getting into another crash (thus proving themselves worthy!).

Ask about multi-car discounts if you're married or have kids who also drive

Multi-car discounts are a great way to save on your car insurance. If you and your spouse have separate cars but are insured with the same company, ask about multi-car discounts.

For example, if one person's car is older and more expensive than the other's (and therefore would cost more to insure), then they could get a discount by combining their policies into one package.

Similarly, if you have children who also drive (and therefore need to be insured), ask about family plans where everyone's coverage can be bundled together at a lower rate than if each person had their own policy.

Some companies offer multi-vehicle discounts even if only one person in the family drives multiple vehicles; this may depend on whether or not they live at home with parents or siblings who use another vehicle regularly as well!

If you're looking to save money on auto insurance, shopping around and getting several quotes, asking about discounts, and combining coverage are great ways to save.