Auto insurance costs can occupy a large part of any family’s budget. In fact, the total costs of insurance premiums take up about 7% of a family’s budget based on recent statistics. For workers who had their salary reduced, auto insurance can take up an even greater portion of their budget. For a variety of reasons, though, many families are choosing to find cheaper insurance or cut back on the insurance they have. Try these tips if you need to cut back in this area of your budget.

Start by bundling your policies together. Many auto insurance companies offer discounts to their customers who keep multiple policies with their company. Even if you only have one car, keeping your homeowner’s or renter’s insurance and your auto insurance with the same company can save a lot of money.

While you’re doing this, inquire about increasing your deductible. Just by increasing your auto insurance deductible from $500 to $1000 you could potentially save about $10 a month or more off your principle payment. Since you likely will not claim small damage to your vehicle, increasing your deductible shouldn’t affect your finances too much.

If these methods don’t work, try shopping around at different companies. Auto insurance rates can differ a lot between companies. Even if you think you already have the lowest rates available, check rates periodically with a few competing companies.

Next, look for discounts for things you can easily change or that you already do. Auto insurance policies usually offer discounts for activities ranging from wearing your seatbelt to changing your oil regularly. These discounts will differ a lot between companies, and also can change frequently. Call your insurer to ask what you may qualify for.

If none of these options produce an affordable policy, it may be time to consider getting a cheaper car. Everyone knows that auto insurance for a used family car is less expensive than auto insurance for a sports car. In general, however, cheaper cars are cheaper to insure. Consider trading in your current car for a less expensive one.

Finally, think about moving to what your insurance company considers to be a low-risk area. According to statistics, drivers in urban areas typically pay about twice as much for auto insurance as what people in rural areas pay.

There are many ways to save on auto insurance. Most methods only require a few minutes of time to set up and can save hundreds of dollars over a year.

Getting the best insurance rates can save you thousands of dollars in the long run. If you are not sure about the cost of insurance or how to save money on it, you should read car insurance rates for tips and information.