If your household is like most, you're probably looking for ways to save money wherever you can. Because auto insurance is almost always a necessity, not an option, finding an affordable auto insurance solution is particularly important. Fortunately, you do have options that may lower your monthly premium.

Mandatory Coverage

Auto insurance coverage rules vary from state to state, but it's likely that your state has some minimum insurance requirements for every vehicle on the road. In Michigan, for example, each vehicle must carry Personal Injury Protection, which pays your medical expenses and includes wage loss coverage if you're hurt in an auto accident. You also need Property Protection coverage, which pays for damage you do to others' property in an at-fault accident, plus Liability protection, which covers your legal fees and damages if someone is injured or killed in an accident and you are determined to be at fault.

Even though certain coverage is mandatory, you still may find ways to lower the cost of those items. If you must carry Personal Injury Protection, for example, designate your health insurance as the primary policy if you're injured in an accident. Also, if you can choose the policy limits on items such as Liability, and you select a lower maximum amount for which your insurance company is responsible, your rates will go down.

Collision and Comprehensive Coverage

If you drive a very inexpensive car, you may wish to consider dropping collision coverage – which pays for damage your vehicle incurs in an accident – and comprehensive coverage, which reimburses you if your car is stolen or is damaged when you're not driving. Remember that your insurance company will only pay what your car is currently worth, not its replacement cost.

Alternatively, you can make your insurance more affordable by raising your collision and comprehensive deductibles – the amounts you must cover before the insurance company begins to pay. Raising your deductibles from $50 to $500, for example, may result in significant savings. Of course, you risk paying more money out of pocket, but consider whether you'll actually pay more in the long run, via higher premiums, if you maintain low deductibles.

When considering your deductibles, it's important to remember the purpose of insurance in general – to protect you against a major loss. The possibility that you'll have to pay a couple hundred bucks if your bumper is dented shouldn't be your prime concern. You want to be covered in case your new car, worth tens of thousands of dollars, is stolen or severely damaged. You also want to avoid being liable for a legal judgment of hundreds of thousands of dollars if you injure someone in an at-fault accident.

Other Affordable Auto Insurance Options

Shop around and get quotes from several auto insurance companies to find the best rates, and ask the companies about any discounts they offer. For example, you may receive a multi-car discount, or a discount for using the same company for your auto and home owner's policies. Purchasing a vehicle with special safety or anti-theft features may also make your insurance more affordable. Additionally, your state may offer discount programs, depending on your income. In California, for example, an individual could qualify for the state's Low Cost Auto Insurance Program with an income of $29,425 or below, for vehicles worth $25,000 or less, as of 2015.

For more information. contact a local insurance company like Hamrick Insurance. 

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