Auto insurance is a substantial expense, but there are many ways to save on insurance.

Shop around. Whether you speak with insurance agents or seek online quotes, always get quotes from at least 3 companies-the more, the better. Similar coverage from different companies can vary as much as $500 for a 6-month period. Make sure that the quote is not just an estimate, but a binding quote as some quotes can be far off the actual rate. Also make sure that the company has a good rating from a company such as Standard & Poor

Evaluate your vehicle. Insurance on cars with high theft rates that are expensive to repair will cost more to insure. Cars with high safety ratings will result in lower insurance rates. Some companies also offer discounted rates on hybrid cars, depending on the type of hybrid.

Drop coverage you will not need. Consider dropping roadside assistance, towing, and rental car coverage if you can do without it. If you drive an older car, you may want to opt of comprehensive and collision coverage as it may be more expensive to insure than it would be to replace your car.

Increase your deductible. By agreeing to pay more out-of-pocket when making a claim, you may decrease your comprehensive and collision premiums, which saves you money on the larger expenses.

Watch your credit report. Clear up any discrepancies before requesting a quote, since a good credit history makes you eligible for lower rates, also pay your bills on time. Late payments can lead to new policies with rates 25-50% higher than the initial rate.

Other discounts to look into are low mileage, good driving record, combined coverage (with your home), good student discount, completion of driving courses, and implementation of safety features.