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Compared with 2006, U.S. drivers are expected to pay less for auto insurance this year, with the average premium rate dropping by half a percent. According to the Insurance Information Institute, this is the first decrease since 1999.

The national average premium rate is estimated at $847 per policy, which translates to a savings of $4 compared to the national average of $851 paid in 2006.

The Insurance Information Institute offers some tips for consumers to lower premiums on their policies:

• Consider how you use your vehicle. Some companies base insurance rates on the number of miles that you drive to and from work.
• Raise your deductible. Increase the deductible on physical damage, it could produce savings of 15 percent to 30 percent or more, but make sure you have enough money to readily pay the higher deductible if something happens to your vehicle.
• Maintain good credit — Insurers use credit-based insurance scores to determine auto coverage premiums. This is because people with good credit tend to file fewer claims.
• Reduce coverage on older cars. An older vehicle might not require comprehensive and collision coverage. Consider the age and value of your auto and whether or not you can afford to fix it yourself if you have an accident. Also consider your overall liability limits. Consumers must make sure they have enough coverage.
• Compare insurance costs before buying a car. Your premium is based in part on the car’s sticker price, the cost to repair it, its overall safety record and the likelihood of theft.

Many insurers offer discounts for features that reduce the risk of injury or theft. These include air bags, anti-lock brakes, daytime running lights and anti-theft devices.

Cars that are favorite targets for thieves cost more to insure.

Information that can help you decide what car to buy is available from the Insurance Institute for Highway Safety

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