At the time of buying a car insurance policy, the company will review the record and if there are too many points in the record it will make you a high risk driver. This means that there is more probability of a claim resulting in high insurance costs. It must be kept in mind that only moving violations affect your insurance and not non-moving violations or parking tickets.

If traffic violation shows up in your record it will have an adverse effect on your rates for many years. The duration depends on the insurance company. Auto Insurance companies review the driving records at the time of renewal of the policy as well. So if you are accused of traffic violations during the course of the year, your premiums will increase. So what do you do to lower your insurance costs?

You can join a driving school and upon completion of the training, the traffic violation is dropped. The training certificate will assure the insurance company that you will be more careful while driving and help you to get lower premium rates. You may also want to go comparison shopping and get cheaper deals. There are a number of companies online that offer maximum coverage against competitive pricing. You just need to do some research and you will find a deal that suits you well. Also, paying higher deductibles help to bring down your premium. The most important requirement to be on the good books of the insurance companies is to have a clean driving record free of traffic violations.

Here’s a list of Auto insurance tips to lower your cost on auto insurance  .

• Carefully consider your requirements for comprehensive and collision insurance. Owners of older cars might be wise to drop these two coverage , because the policies only pay up to current book value of the car.

• Consider increasing deductibles. Substantial savings can be obtained by agreeing to pay the first $500 or $1,000 of each comprehensive or collision loss. Premiums could drop 15 percent to 40 percent for such concessions.

• Check insurance rates for particular car models. Some models are more likely to be stolen, and others are less costly to repair.

• Don’t buy a car for a dependent under age 21. Younger drivers are charged higher rates.

• Check for special coverage. Some companies give discounts to drivers age 50 and older or farmers.

Additional, here are a number of other tips for reducing rates:

• Shop around and compare prices. Rates can vary widely.

• When purchasing insurance, make certain the coverage for items like bodily injury and property damage liability and personal

• Ask about other discounts. Some insurance companies will reduce premiums anywhere from 5 percent to 30 percent for such things as installing anti-theft devices, having automatic seat belts or airbags, participating in driver education courses, keeping mileage low and car pooling.

A pure no-fault system, offers more compensation dollars to the injured party, rather than expenses for lawyers and the legal process, and it would reduce the amount of time for awarding claims because court action would be avoided.

Awards are also uniform with parties receiving similar amounts for similar injuries. It’s not who’s got the best attorney, or something like that. Freedom of choice may not offer the desired effect, though. The insurance business is based on the concept that large groups form to better cover their risks. More choices could cause more and smaller groups.

Giving a choice can be more expensive than having everybody in the same group. However, consumers are surrendering their right to sue for a minimal savings in insurance.

To encourage someone to give up (the right to sue) for a few dollars on a premium bill is very shortsighted, indeed. The reduction is valid, because the insurance companies see their expenses drop because of the no-fault system. In some cases, the no-fault system has been easier for lawyers, because they know their client’s medical expenses will be paid. The biggest complaint against no-fault is that it will reduce insurance expenses. And it hasn’t happened.