In the current economic scenario, everyone is looking for ways to cut down expenses in order to save money and buying a cheap auto insurance policy seems like a good idea. However, cheap auto insurance policies are not easy to come by. Auto insurance premium rates depend on several factors and you can control some of them to lower your auto insurance rate.

Let us have a look at some tips that can help you get cheap auto insurance:

1. Research before you buy and don't purchase the first auto insurance policy you come across. Use the Internet to research auto insurance rates of various companies and go through the terms and conditions as some cheap auto insurance policies have hidden costs.

2. Having a good driving record is one of the best ways to get cheap auto insurance. If you drive safely and steer clear of driving offences, you are bound to get low-cost auto insurance.

3. Deductible is that portion of the claim which is not paid by the insurance company; the policyholder has to pay that amount when claims are made. So, if you choose to pay a higher deductible, your monthly auto insurance rates will go down.

4. Auto insurance rates are lesser for small cars as compared to big cars, because repairs of small cars are cheaper. Therefore, you should buy a small car if you wish to find cheap auto insurance.

5. Make your car safer by adding protective features, such as, antitheft devices, steering wheel locks and parking your car inside a garage.

6. The job of an insurance agent is to sell you as much coverage as possible (because he earns a higher commission). Several people end up buying unnecessary coverage they don't require and thus, pay high auto insurance rates. Make sure you don't fall prey to this.

7. Several companies have discounts (for women, students, senior citizens, low-mileage drivers), but don't offer them unless you ask. Thus, you should not shy away from asking the company representative if you are eligible for any discount.

8. Several large and well-known insurance providers offer cheap auto insurance, consequently, people often ignore the smaller and relatively unknown companies. Small companies offer low-cost auto insurance to stay in the competition. Make it a point not to overlook these companies.

Make sure that the auto insurance policy you purchase covers you against damages, because a cheap auto insurance policy that doesn't pay for anything is worthless.