Recent data from the U.S. Bureau of Labor Statistics show that auto insurance premiums were 4% higher in February and March than they were a year ago.

The Insurance Information Institute, an industry trade group, now expects the average annual premium will reach $875 this year, up from $858 in 2008.

Why is auto insurance getting more expensive?

Commercial credit is more expensive, making it more costly for insurance companies to borrow money and manage their cash flow.

In addition, even though the frequency of auto insurance claims is going down, the dollar cost of each claim is going up.

That's because more complex, high-tech car parts are more expensive to replace, says Steven Weisbart, senior vice president and chief economist of the Insurance Information Institute.

There are several ways to soften the blow:

• Look for discounts for insuring multiple cars or insuring your home and car with the same provider.
• Make sure you're receiving all of the good-driver and accident-free discounts you can.
• If you recently took a job closer to home, or began taking the bus or train to work, update your policy to reflect that you're driving fewer miles.
• Increase your collision and comprehensive deductibles. Just make sure you can shoulder the additional costs if you have a claim.

If the cost of owning your car or truck is astronomically high, consider downsizing your ride to save on monthly payments and insurance.