Everyone is looking to save money these days. Times are hard, and many are learning that every penny counts. One way to find extra money in your budget is to save as much as possible on your car insurance. Lowering your auto insurance is pretty simple and won't require a lot of hassles. Below are a few helpful tips that can reduce the cost of your auto insurance.  

Shop around.
A good time to start shopping around is when your current policy is up for renewal, especially if you find that your premium has gone up. Auto insurance premiums for the exact same coverage on the same car can vary widely (by hundreds of dollars) between different insurers, even in states that regulate auto insurance rates. Therefore do not take the first offer, instead request at least three different quotes, and compare them before making a decision.

Increase your deductible.
Raising the deductible on auto insurance is a good way to cut the cost of the policy. Sometimes you can reduce your annual premium by 10-25 percent or more if you increase your deductible from, say, $250, $500 or $1000. If you do this, however, make sure you have the financial resources to handle the larger deductible if the time comes.

Drive less.
If you drive less than a certain number of miles in a year (e.g., 7,500), you may qualify for a low-mileage discount. If your insurer offers this discount, try to limit your driving as much as possible. If you commute to work, use public transportation instead of driving. When you go away on vacation, fly or take the train.  

Multi-family/multi-policy discounts.
If you buy more than one type of insurance through that same company (e.g., auto, life, and homeowner’s) you may get a discount. A discount may also apply to your auto insurance if you insure multiple cars under the same policy or with the same company.

Maintain a Good Credit Record.
Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price auto insurance policies. To protect your credit standing, pay your bills on time, don’t obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.

What have you done to lower your auto insurance cost?

Sharman Lawson a columnist on Fabulously40, and a financial coach, speaker, and author of the book 12 Steps to Eliminate Debt Forever! Visit her website: [Link Removed]

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