Reduce Auto Insurance: 5 ways to save

Tips on saving money on auto insurance during trying economic times.

Too many people set their auto insurance policies and forget about them.

This results in extraneous costs that drivers continue to pay year after year all because they haven't taken the time to review their current polices and revaluate their insurance needs. It's the equivalent to throwing money out the window.

The good news is that there are simple steps that every driver can take to lower their rates.

There are five easy ways that drivers can save money on their auto insurance this year and the most it takes is a little bit of time and a phone call or two.

To cut your auto insurance costs down and put some much needed money back in your pocket implement the following tips.

1. Shop around - Regardless if you never had a ticket or accident many insurance companies charge you more if you don't have a college degree, don't work in a "white collar" high paying job, have a poor credit score or don't own your own home. Also, if you use an agent or broker - they only represent a certain number of insurance companies and don't have the ability to effectively shop around to compare rates for you.

2. Review your current policy - If you don't have assets to protect, you may not have a need to purchase large limits for liability. For example, the state of New Jersey allows every driver to purchase a Basic Policy which allows you to buy a policy with no liability insurance coverage.

3. Drop the physical damage coverage for your car - If you drive a car that is seven years old or older consider dropping your collision and / or comprehensive coverage since the vehicle's market value has significantly decreased and any claims that you may not exceed the deductible amount.

4. Assume more risk - Request a higher deductible. Increasing your deductible from $500 to $1,000 could decrease your premium by up to 30 percent. Remember collision deductibles generally only cause you to pay if the accident is your fault.

5. Look for different discounts - Discounts for a secure garage and off -street parking are examples of the unique benefits that CURE auto insurance offers. The discounts can be significant especially in urban areas where you pay much more for insurance due to the location alone.