High gas prices have been getting a lot of press recently and justifiably so. With the average national price currently hovering around $4 per gallon, filling up is just downright painful. However, there is another hidden cost to owning a car that you probably don’t think about too often, your auto insurance.

The average cost to insure a car in the United States in 2007 was about $850 and it should be about the same this year. Yet, a whole host of factors can raise or lower your premiums by 40% or more. So, I present to you here the 11 easiest ways to potentially reduce your premiums by 40%. That should fill your tank once or twice, even if you drive the most gas guzzling SUV out there.

1) Compare Companies

The absolute easiest way to save on your auto insurance is to shop around. You should get quotes from multiple companies at least once a year, if not every six months, to make sure you are paying as little as possible. Rates from one company to the next can easily vary by $500 a year so it worth your while to do a little research.

The good news is that the Internet makes this process really simple. You can just do a simple Google search and you will find hundreds of websites offering free quotes. Too lazy to do even that? Then use the form below to find companies offering free auto insurance quotes in your state.

2) Become a Better Driver

The next easiest way to save money on auto insurance is to become a better driver. Slowing down is a good first step. Plus, when you drive slower you will also save money on gas. You should also try to cool the road rage, since this really doesn’t do anything for your long term health. Finally, you should definitely avoid drinking and driving, even one DUI and your rates will go soaring.

If you have been charged of a DUI or other road violations and you honestly think you are not guilty you should probably fight your tickets. On the other hand, if you are guilty it is probably not worth you time or effort to fight the ticket, just don’t repeat your bad behavior. Instead you could consider a defensive driving course which can save anyone, no matter what their driving history, up to 10% on their premiums.

3) Drive Less

A third easy way to save money on your car insurance is to drive less. Most companies offer discounts to drivers who drive under a certain number of miles each year. The specific number differs from company to company but usually kicks in for those who drive under 7,500 miles a year. The other benefit from driving less is that you will again save money on gas.

Two ideas for ways to drive less are trying to walk or bike for short trips and carpool for work. Besides that you could always move closer to work, but I don’t think this qualifies as an insanely easy way to reduce your auto insurance payments. Obviously, driving less is easier for some than others but it is good to be aware that this discount exists.

4) Combination Discount

A fourth way to save money on your auto insurance is to get a combination discount. Basically, some insurance companies will offer a discount if you buy more than one insurance policy from them. For example you could buy home and car insurance from one company. Now you will have to check to see if this makes overall sense, since you may be able to find the lowest rates from separate companies. These type of discounts, when offered, usually lower your premiums by 10-20%.

5) Good Grades

If you are a student, you are probably young and hence are paying through the nose for insurance (especially if you are male). The one silver lining is that if you are a good student you can easily save up to 25% on your auto insurance. To get this discount you typically have to have at least a 3.0 GPA but as long as you maintain it, you can enjoy your savings.

6) Retirement Discount

At the other end of the spectrum, if you are retired you may also qualify for a discount. Retirement discounts typically average about 20%, so it is worth getting in contact with your insurance company if you have recently retired. The reason is that people who are retired typically drive less (no job commute) and hence tend to get in fewer accidents.

Another thing to consider if you are retired is to take your children off your policy. Generally, the fewer drivers on a car the less you will pay in premiums. This of course also applies to people whose adult children no longer drive their car.

7) Safety Discount

Some states (most notably New York and Florida) also offer generous safety discounts for things like having anti-lock brakes, airbags, car alarms or other anti-theft devices installed in your car. It rarely makes sense to get these things installed just to save money on insurance, but if you already have them make sure your insurance company knows and you could save 10-20%.

8 ) Raise Your Deductible

Increasing you deductible is another way to realize significant savings on your auto insurance. For example raising your deductible from $200 to $500 can result in 15-20% savings and raising it to $1,000 can result in up to a 40% reduction in your premiums. On the downside, you will have to pay more should you actually have to make a claim on your insurance.

9) Drop Collision and Comprehensive Coverage

If you have an older car you may even want to consider dropping your collision and comprehensive altogether. This can result in savings of up to 40% off your premiums, but could leave you in a bind should you get into an accident. I would only seriously consider this option if you car is worth $2,000 or less.

10) Credit Check

A more practical way to see auto insurance savings, without sacrificing coverage is too maintain a good credit record. Those with poor or no credit history can end up paying 30-40% more than those with the best credit scores. The reason being that insurance companies have found that those with better credit histories tend to make fewer claims and generally cost them less.

The good news is that you can check your credit history for free courtesy of Uncle Sam. Every American is entitled to one free annual credit report from each of the three major credit reporting agencies. Just visit annualcreditreport.com to get them. Remember, never get a credit report from sites that make you register for credit monitoring service just to get your report.

11) Pay Annually or Semi-Annually

The last easy way to save on your auto insurance is to pay annually or least every six months. Insurance companies usually charge $5-10 extra a month for monthly billing. Save yourself the hassle and the money and opt for one of these options. Plus, it makes one less bill you have to think about every month.

Bonus) Buy A Better Car

I have also decided to include this one bonus tip. I didn’t want to include it in the 11 insanely ways to reduce your auto insurance premiums because it is not as simple as the others. But it can save you as much if not more than any of the other tips. The make and model of car you choose to drive has a huge impact on your car insurance premiums.

Now, you probably are not going to go out a switch cars today just because you can save $100 a year on your auto insurance premiums. However, my advice is the next time you are shopping for a car be sure to get a few free quotes first to see which option would be the cheapest to insure. You can always use the form below for free if you are in the market for a new car, or are just curious about how much you could save.

So there you have it, 11 insanely easy ways you can reduce your auto insurance premiums by as much as 40%. Remember, if you are ever unsure about something your insurer is charging you for or if you questions about insurance you can always contact your state’s Department of Insurance. They can help you with most problems from whether or not a certain auto insurer is legitimate to other savings options that may apply in your state.

If you have any other ideas about how to save money on auto insurance please share them in the comment section below.

Disclaimer: Yep, here is the standard boring disclaimer to prevent any complaints or lawsuits. Your actual savings may be different from the examples listed above. If you have already taken steps to reduce your auto insurance premiums, your actual savings will probably be lower. Conversely, if you have never paid attention to your auto insurance premiums before, you may enjoy even higher savings. All information presented is for educational purposes only.