Next to car loans and the escalating price of fuel, one of your biggest auto expenditures will be your insurance bill. Fortunately, there are some simple ways you can make a big dent in the cost.

The auto industry is lucky that people have such a love affair with those four-wheeled wonders. Considering the extra costs of fuel, loans, repairs, and insurance, the car is one of the biggest expenditures a person will make.

As a car owner, your wallet is taking a whack from the inflated cost of gas. Now, you may be scratching your head and searching for ways to save some cash. Your insurance bill is a great place to start.

Know the playing field

To slash costs, it's important to understand how insurance is sold. Overall, auto insurance is either sold directly by the insurer or through an exclusive or independent agent.

Direct sales companies, such as GEICO, tend to be cheaper, but usually, they only take people with clean records. Exclusive agent companies like American Family and Allstate cost a bit more, but they're a little more lenient on who they accept. Independent agents have the flexibility to work with any insurers, and they may occasionally beat both their competitors on price.

Looking for discounts

Actuaries run the insurance world, and they're eager to give discounts to people who are low risk and who pay their premiums regularly. This is why you'll see so many specific types of discounts offered by insurance companies.

If you have a teenager who gets high grades, for example, you can expect a discount. There are a variety of other discounts-for defensive driving, good grades, safety, and more. As you'd expect, all are designed to reward safe drivers and those who live responsibly.

Saving outside the box

You can find other ways to save on your bill besides discounts-and the first place to start is your car. Actuaries factor in your risky behavior into the cost of your premium, but they also consider your car as part of the equation. If you have the type of car that's often targeted by auto thieves, or one that receives poor safety evaluations, expect to pay higher premiums.

You can also save by adjusting your premium to the value of your car. If you drive an old beater that would cost more than your deductible amount to replace, carrying collision insurance is a waste of money.

As you evaluate ways to save money on your insurance bill, look closely at your credit history. Just as actuaries base insurance costs on your driving record and the condition of your auto, they also look at your past behavior. Review your credit report to ensure that's its error-free, and pay off any outstanding credit card balances to boost your score. Having clean credit, in addition to a clean driving record and a practical car, is the easiest way to slash costs on your insurance bill.