Nate and I have been looking at all sorts of ways to cut costs in our lives lately, with a new mortgage and a baby taking up a lot of our budget right now. Car insurance is one area where people frequently look to cut costs – but it can be overwhelming when you're not sure what exactly you need in an insurance company and what you shouldn't have to pay extra for. Below is a sponsored post with tons of suggestions!

Car insurance isn't the easiest to figure out. Insuring a car can often be very technical, with companies offering countless insurance policies and options.

Yet, when you get down to it, there are a few key areas you should focus on instead of others. To this end, here is some useful information and tips that might better help you find the right insurance.

Understanding Excess
For most insurance policies, the excess will be very crucial. This is what you need to pay before the insurance company will pay the rest. Since you're paying the excess, it needs to be something you'd be happy to pay. Bare in mind that this is talking about hypothetical scenarios and emergencies, so it needs to be an amount you could ideally afford at any point throughout the month, not just on pay day.

Typically, a lower excess is rewarded to proven and safe drivers, yet it’s also available if you want higher premiums and other costs. This is a simple trade-off, and you may want to think about the likelihood of an accident or incident before jumping to any conclusions. However, if this is important to you, then it will certainly pay to look at the excess insurance options.

You as a Driver
As important as the car is, you yourself are also a vital factor in the insurance you receive. Not only does the insurance protect the car, it is also assess the associated financial risks, and that includes the associated driver of the vehicle.

Typically, insurance rewards older drivers. As for young drivers, male's often have higher insurance, due to statistics that suggest these are the most reckless or accident prone. This is unfortunate, and something that most young drivers have to deal with, although specifically tailored insurance for younger drivers does exist.

That being said, you can reduce your insurance options through a reliable insurance history. No claims bonuses are a big thing these days, and many insurance companies will be happy to reward you for being a safe driver. This can take different forms, such as a lower excess or premiums, so you should still shop around to find the best option suited to you.

The Car
Finally, the car itself will obviously influence the insurance provider. Cars are generally rated by engine size, ranked from 1 to 50. Cars at the bottom of this scale have the smallest engine and typically cheapest insurance. The top end of the scale features vehicles with the largest engines and heft insurance to match.

Knowing where you car fits will indicate what policies you can expect.

Likewise, if you're buying a new vehicle, keeping the engine size down is a great way to keep the insurance down. Also be aware that any modifications to the car can change the insurance. Even if doesn't affect the engine size,even something like an external modification (such as a spoiler) makes the car a custom car. This is expensive, and generally increases the car insurance. Therefore, if you want to keep your car insurance costs down, don't make any unnecessary changes to the car. If you do, speak with your insurance company first to find out what changes will occur as a result.

This is a sponsored post.