How can I save money on my auto insurance?

In the words of the old '50's hit, "You better shop around!" Make a list of possible split limits, deductibles, driving history, etc. and then call at least three insurance companies for a rate quote. You will want to compare their prices and their services. Make sure you compare apples with apples by having your list by the phone as you call. Or go online and check out the insurers in your state. Search the internet for an insurance shopping service that will do the comparing for you. But it is important to compare. Your dad's insurance company may not offer you the best rates for you and your family.

Before you buy that SUV you have been admiring, check out the vehicle's accident or thievery rate. Insurers will want to be compensated for this kind of auto insurance.

Look for a package deal. Does the insurer offer homeowners insurance as well as other kinds of insurance that will give you a lower rate if you go to them for all your insurance needs?

Raise your deductible. If your out-of-pocket expenses can handle it in case of an accident, raise your deductible accordingly, particularly in the liability splits.

Look for discounts. Some insurers reward you for a good driving record, your age (50 — 65), low yearly mileage, anti-lock brakes, anti-theft deterrents, a good academic record for your kids. The idea must be if they get good grades, they are studying and not out driving the car.

Take the next steps...

First, assess how much coverage and deductibles fit your state's requirements, your assets and your lifestyle. If you tend to worry about being adequately covered err on the over side. However, generally, think $50,000 for bodily injury liability for a single person with $100,000 for total injury damages with $25,000 for property damage liability. Figure that more than half the cars on the road are worth about that or even more. BUT, if your assets look like they are worth going for, someone probably will, so make sure you have enough coverage to prevent bankruptcy. No assets? Go with the lower coverage.

Look at your current policy and note how much you are paying monthly and yearly. This will give you something to compare when you call other insurers.

When you shop, have your current policy with you as well as your driver's license and your vehicle registration. Go online. There are services that can help you such as insweb.com or insureone.com. You enter the information and they will send you a list of quotes from various insurers. Or go to the insurer's website and get a quote. Some vendors are Geico, Progressive, or GMAC Insurance. Get the quote e-mailed to you for your verification.

Shop around for auto insurance as rates vary widely. Keep your deductible as low as you can comfortably, and if assets are significant, make sure you have enough liability insurance.