The Fastest Way to Reduce Your Auto Insurance Premiums

Auto insurance is a must-have for every driver. It's legally required in most states, and considering how expensive an accident can be, you wouldn't want to drive without it.

That doesn't make the cost of car insurance any easier to stomach. The average is $251 a month, according to data gathered by The Motley Fool Ascent. That's $3,017 a year, and this number has been rising.

You're not stuck paying expensive car insurance rates. If you want to reduce your premiums ASAP, here's what you can do.

The fastest option: Look for discount opportunities with your current carrier

If you haven't looked for car insurance discounts within the last six months to a year, that could be the easiest way to lower your rates. Most carriers have lots of discount opportunities. These may include:

• Bundled coverage: A lower rate for buying multiple types of insurance from the same carrier, such as home and auto insurance.
• Low-mileage discount: A discount for those who don't drive often -- make sure to look for this option if you work from home.
• Defensive driving: A discount for drivers who complete a defensive driving course.
• Good student discount: A discount for students who maintain a minimum grade point average (normally a B or higher).
• Pay-in-full discount: A discount for paying your entire auto insurance policy in full, instead of in monthly increments.

Car insurance companies typically include a list of discounts on their websites. You can log into your account or call customer service and ask what discounts are available for you. It's sometimes possible to save 10%, 20%, or more on your premiums by taking advantage of discount offers.

Make sure to shop around for auto insurance regularly, too

This option isn't quite as fast as adding discounts to your current policy. But it doesn't take that long.

You can compare car insurance rates online in the course of an afternoon. If you find a quote for a lower rate than what you're currently paying, signing up for new auto insurance usually takes less than an hour.

Shopping around for car insurance is a good habit. Ideally, it's something you should do at least once a year, although only 26% of drivers do this. The only way to know if you're overpaying for insurance is by shopping around.

In many states, car insurance companies even charge higher rates for drivers who aren't likely to shop around for a lower price. This is known as price optimization.

Getting the best car insurance rates

Car insurance discounts and shopping around are the fastest ways to lower your rates. However, the factors that have the biggest impact on your premiums take longer to improve.

A clean driving record is one of the most important parts of getting cheap auto insurance. Drivers with a clean record pay an average of $2,706 per year, 10% less than the overall average. Speeding tickets, accidents, and DUIs all cause your rates to go up quite a bit.

Your credit score also affects your insurance rates, outside of a handful of states that don't allow this practice. Drivers with a poor credit history pay over twice as much on average ($4,145) than drivers with excellent credit ($1,947). To build a high credit score, always pay your bills on time and avoid carrying large balances on your credit cards.

Car insurance doesn't need to be expensive. If you have a clean driving record, a good credit score, and you regularly shop around for discounts and a new policy, you could spend much less on your premiums.