Your car insurance cost could probably be lower. You need car insurance anyway—whether because it's the law where you live, or it's required by the company you're leasing or financing your car from. But there's nothing that says you can't reduce or lower your car insurance cost as much as possible. So we've put this handy list of 12 tips together to help you reduce your car insurance costs.

1. Clean driving record

Having a clean driving record is pretty much up to you. Have you had an auto accident? Have you gotten a speeding ticket? Have you received a citation for a moving violation? If your answer to all three questions is “no,” you're in good shape.

But if you've answered “yes” to one or more of the questions, you need to take an honest look at your own driving. Work on developing safe driving habits and becoming a more defensive driver. It will go a long way towards lowering your car insurance cost—and making yourself and your family safer.

Okay, we admit: this sounds contradictory. So we'll explain.

Some auto insurance companies will decrease your car insurance cost if you've been with them for a few years (and you haven't put in any claims). Then again, there are also some car insurance companies that will give new customers a discount, which could work out to a lower car insurance cost for you. Do your research and see if it's better—and cheaper—for you to stay with your current car insurance company, or go to a new one.

Speaking of doing research, you should be shopping around for the best car insurance deal anyway, if you're serious about saving money. Call a few car insurance agencies in your town and ask for car insurance quotes. Use the Internet, too; try several websites that offer online car insurance quotes and compare car insurance costs between companies.

A tip: make sure when you compare car insurance costs between companies, that you're comparing the same type of coverage, too. If car insurance company “A” is offering you car insurance for $250 less than car insurance company “B,” be sure that it's not because car insurance company “A” is offering you $250 less in coverage.

The more drivers listed on your car insurance policy, the higher your car insurance cost. You may have forgotten to remove the adult child who went away to college or the old roommate; check your car insurance policy and if they're still on there but they shouldn't be, have your car insurance company remove them.

Also, there may be people still living at home with you who might never drive your car no matter the circumstances (for example, it's a stick shift but only you know how to drive one) but they're on your automobile insurance policy anyway. Make sure to take them off your car insurnace policy to reduce your cost.

It's no secret that drivers of luxury cars and sports cars pay the highest car insurance premiums. Luxury cars can be very comfortable to drive and sports cars can be real fun, but in both cases they can make your car insurance cost a lot more than it should.

Think about trading in the flashy car for a more modest one and you could see a serious reduction in your auto insurance cost.

You want to check the cost of car insurance both on the Internet and in the real world, of course, to get the best price (see number 3 above). But generally speaking, online car insurance can be cheaper than car insurance in the real world. Car insurance companies that are web only tend to have lower overhead costs than traditional car insurance companies and they can pass on the savings to customers. Even “brick-and-mortar” car insurance companies that also offer their products on the web might offer a discount for buying car insurance online.

Car insurance firms love safe drivers. So, prove to your car insurance company that you are indeed a safe driver: take a safe driver course. Make sure your car insurance company will lower your car insurance cost first, though.

If so, take the course. Then send your car insurance company a copy of the certificate you get from the safe driver course.

8. Get minimal car insurance coverage

Check your car insurance policy to see what type of coverage you have, and check your state or province's laws regarding car insurance coverage. Most jurisdictions will only require that you have some form of liability insurance (either personal injury liability, property damage liability, or maybe both) to cover the other party in an accident where you're at fault. Be sure to check the law's liability insurance limits, too (it may be $20,000 for personal injury and $25,000 for property damage, for example) and compare it to what you currently have.

If it turns out you're over-insured, you should change your car insurance policy to reduce your car insurance cost. A caveat, however: if you're leasing your car or you're making monthly payments on it to a bank or finance company, they may require additional insurance coverage on top of the legal limits, such as comprehensive and collision. Again, though, check your car insurance policy, the auto loan documents or lease agreement, and your state law, to make sure you're not over-insured. If you are, you can reduce your coverage—and your car insurance cost.

9. Pay your annual or semi-annual car insurance premium up front

Car insurance premiums are usually figured out based on a yearly or six-month cost. But most car insurance customers prefer the convenience of monthly payments, so many car insurance companies offer a monthly payment plan—at an extra cost.

Save this extra cost, pay your annual or semi-annual car insurance premium up front.

Try to find a way to reduce your commute—and your overall annual miles drived—and you'll reduce the cost of your car insurance. Find a job closer to home, or tele-commute (work from home on your computer) if your employer will allow it. Take public transportation, at least part of the way in to the office if it won't take you all the way. Join a carpool. 

If the law and (in case you're leasing or financing your car) your finance company allow, increase your deductible—or the amount you have to pay in a claim before the insurance company pays—to lower your car insurance cost. All other things being equal, a car insurance policy with a $1,000 deductible will cost less than one with a $500 deductible. Increase your deductible (again, if the law and your finance company allow) and decrease your auto insurance cost.

Just be sure you can afford the higher deductible. If a higher deductible will wipe you out financially, then it may be better not to change your car insurance policy's deductible.

Add security and safety features to your vehicle and you can lower your car insurance cost. Safety features are difficult and expensive to add to a car that's already on the road, so look for them when you shop around for a new automobile. Items such as side air bags, four-wheel anti-lock brakes and daytime running lights could make your car insurance cost less.

Security, or anti-theft features, can be built in to a new car or added later. Things such as a car alarm, kill switch, steering wheel lock and a vehicle recovery system will make your car harder to steal—which should result in a lower car insurance cost for you.

Follow as many of these “dirty dozen” tips as you can and watch your car insurance cost go down!