It may seem easier to use the same insurance company as your parents, but after you move out on your own it’s worth doing some comparison-shopping for car insurance. You could save hundreds of dollars a year with the right policy.

Here are some of the factors that can help you save money as you move through young adulthood:

1. You're closing in on age 25.  The youth penalty is usually eliminated by around age 25. So you should see your rates steadily improve up to that point.
2. Your education and professional level is growing. Some insurers reward drivers with advanced degrees or certain jobs. Professionals like scientists, pilots, actors and artists may pay lower rates, while executives, lawyers, nurses and business owners may pay higher rates.
3. Your credit rating is improving. As you get your first credit cards and manage your finances well, your good credit will help you get lower insurance rates.
4. You're getting married.  Married people are generally considered more responsible and stable than singles. If you get married before age 25, you could qualify for a lower rate, especially as a man.

Comparison-shopping for auto insurance online is convenient, safe, and easy. You can get immediate competitive quotes from several different companies with just a few minutes of time entering your personal information. Price isn’t the only thing to compare—be sure you check for the correct coverage, customer service, the financial strength of the insurance company and other important factors before selecting your coverage.

There are more ways you can reduce your premiums:

• Drive safely. When you go three years without a ticket or accident, you will usually qualify for a lower rate.

• Increase your deductible. Share the risk with the insurance company by accepting a higher out-of-pocket expense in the event of a claim. You can save 15% or more.

• Improve your credit rating. Clear up any mistakes on your credit report and make sure you’re paying all bills on time. Insurers factor in your credit score when calculating your premiums.

• Eliminate collision and comprehensive coverage on an old car. If your car is worth less than $2,000, you may be better off without this coverage. The expense of the coverage may be more than the payout you’d receive on a claim.

It’s not a bad idea to do a re-shop of car insurance annually as you review all your financial information to ensure you’re getting the best rate and have the right coverage as your life situation changes.

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