According to the Highway Loss Data Institute, the safest vehicles are four-door models, vans, and trucks. So if you drive one of these vehicles, you often pay a lower premium.

Conversely, if you drive a vehicle that’s considered “high-theft,” you’ll pay a higher premium.

According to the National Insurance Crime Bureau (NICB), here are:

1. Toyota Camry

2. Honda Accord

3. Honda Civic

4. Oldsmobile Cutlass

5. Jeep Cherokee/Grand Cherokee

6. Toyota Corolla

7. Chevrolet Full Size Pickup

8. Ford Taurus

9. Chevrolet Caprice

10. Ford F150 Series Pickup

Believe it or not, an estimated 1.2 million vehicles were stolen in the U.S. in 2001!

This works out to be one theft every 22 seconds! In fact, vehicle theft costs our society $8.2 billion a year.

Okay. Now that you understand the seven main factors that insurance companies use to calculate your car insurance premium, let’s examine:

As you’ve learned earlier, if you have a good driving record, you’ll pay a lower premium. Here are some tips to help you drive more defensively:

• Always wear your seatbelt.

• Drive at or close to the speed limit.

• Never drink and drive.

• Avoid driving at night and in bad weather conditions, if possible.

• Use your horn to get pedestrians' attention.

• Use your horn and lights to get other drivers’ attention.

• Pay attention when you hear other drivers’ horns.

• Confirm with visual check and use your mirrors and directional signals for all lane changes.

• Use four-way flashers to warn drivers behind of slowed or blocked traffic to avoid being hit from behind.

• Watch out for big trucks, buses, and vehicles that make wide turns.

• Watch for cars that are pulling trailers.

• Watch out for drivers who stop or turn without signaling.

• Watch out for pedestrians in school zones or playgrounds.

• Watch for cars rushing through intersections at the end of a red light.

• Be careful of drivers who tailgate. If possible, pull over and let them pass.

• Be careful when approaching and leaving four-way stops and unmarked intersections.

• Look behind you before backing out of a parking place.

• Avoid using the cell phone while driving. If you must use it, then pull to the side of the road before doing so.

When purchasing a vehicle, look for one with a good claims track record. Vehicles that are less likely to be stolen, or that have lower-than-average accident rates, will cost less to insure. Sport vehicles or luxury models tend to carry higher-than-average insurance premiums. Also, because four-door model vehicles are safer than those with two doors, the premiums are usually lower.

3. Raise your deductibles.

You can save money substantially by taking on a little more of the risk yourself. Increasing your auto deductibles from $100 to $500 may save you 10 to 20%. Remember, the lower the deductibles, the higher your premium.

If your insurance company offers $1,000 deductible, then you may even consider raising your present deductible to this amount to save even more money. You then can deposit this amount into a savings account and use it as your own insurance fund. And if you don’t file any claims for several years, then you may have enough money from this savings account to pay for your own auto claims.

If you own an older vehicle, consider reducing the collision and comprehensive coverages. If the book value of your vehicle is very low, you may not even need collision or comprehensive coverages at all. Your vehicle may have depreciated so much in value that it’s not worth paying the extra premiums. Remember, the most your insurance company will pay is your vehicle’s book value, or “fair-market” value.

When you’ve put more than 100,000 miles on your vehicle, you pay lower premiums because its book value has decreased substantially.

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