How Can You Save on Car Insurance?:

How Do You Get Good, Affordable Car Insurance? - According to a study by the Insurance Research Council, more drivers are dropping their insurance policies in order to save money. About 16.3 percent of drivers do not carry insurance, even though it is mandatory in 48 of the 50 states. At the very least, you need to carry your state's minimum liability coverage; if you have a car with a lien on it (as you do when you buy a car, new or used, at a car dealership and have financing), you often are required to have full insurance. But what does this mean? How much should you be insured for, and how much should you pay for it? Minimum liability requirements vary by state, but they include:

*Bodily injury liability maximum for one person injured in an accident.
*Bodily injury liability maximum for all injuries in an accident.
*Property damage liability maximum for an accident.

Many states also require that you have personal injury protection (PIP) and uninsured motorist protection. PIP covers medical expenses and damages, such as lost wages, while uninsured motorist protection gives you recourse if the driver at fault in your accident (assuming it's not you) does not have car insurance. When you see quotes for car insurance, they will have three numbers for minimum liability, so if you live in Florida, for instance, you will see "10/20/10." This means that your bodily injury maximum for one person is $10,000, your bodily injury for all injuries is $20,000, and your property damage is $10,000. Again, each state is different. If you live in California, your liabilities are 10/40/10. They are 20/40/10 in Connecticut, and you are also required to have PIP and uninsured motorists protection. What are your minimum liability requirements for car insurance? Check here to find your state's minimal liability requirements (http://www.insure.com/car-insurance/minimum-coverage-levels.html).

"Full coverage" isn't a technical insurance term. Instead, it refers to coverage that goes beyond the state's minimum requirements. These policies may include:

*24-hour roadside assistance
*Legal representation for an accident
*No deductible windshield repair
*Home ownership credit
*Customer Repair Service Program (CRSP) with Life of Vehicle Guarantee
*Full value replacement cost coverage
*Accident forgiveness for first accident under that policy or after a specified period of time
*Accidental death benefit
*Full value replacement cost coverage

The biggest difference is that you have comprehensive and collision protection. Collision insurance pays for repairs or replacement of your covered vehicle in an accident. Comprehensive pays for repairs or replacement in non-collision situations, such as theft, fire, and vandalism.

Lower your Auto Insurance Premiums:

*Get multiple quotes. Quotes are free and relatively easy, so take advantage of that offer. You can often do them online and receive a quick reply. Getting the cheapest car insurance regardless of coverage is not a real money-saver, so take the time to look at the rates and make an informed decision based on price, coverage, and service. Always compare car insurance company (http://www.insurance.com/) rates. The National Association of Insurance Commissioners has a site that will help you check out the licensure of specific companies in your state (http://www.naic.org/state_web_map.htm). It pays to go with companies who have a stellar reputation and preferably those who have local agents.

*You can lower your coverage to minimum liability on older cars. Add your comprehensive and collision premium and multiply it by ten. If that figure is more than your car is worth, drop it. You will have minimum liability to cover you for accidents.

*Clean up your credit score. It can be hard to find inexpensive auto insurance if you have a low credit score; in fact, you could pay up to 50 percent more.

*Cash in on discounts to get more affordable car insurance. Many companies have discounts for good students, married couples, homeowners, veterans, those with anti-theft devices, and those who combine auto and home policies. Weigh the discounts against the cost; some of the best discounts come on higher priced policies, so even with the deductions, it may not be less expensive.

*Check your deductible. If you raise your deductible, you can save on your monthly bill. So, if your deductible is now $500, upping it to $1000 will be cheaper per month. If you have an accident, you have to pay $1000 instead of $500, so decide if the savings is worth it. Many people find that it is, indeed, a good way to save.

*If you can pay your premium upfront. Most insurance companies charge an installment fee. If you have a less expensive policy, this can save you more.

*Research, research, research. We can't say it strongly enough: sometimes the cheapest car insurance is not a good idea in the long term. You really want to go with a reputable company. How do you know if an insurance company is reputable and pays its claims? You can check AM Best (http://www3.ambest.com/consumers/ConsumerInfo.aspx?site=5&Page=14) or Standard & Poor's (http://www.insure.com/articles/interactivetools/sandp/newtool1.jsp) for the company's financial capacity to pay claims, JD Power and Associates (http://www.jdpower.com/insurance), and your individual state's Department of Insurance (http://www.naic.org/state_web_map.htm). Buying the cheapest car insurance (http://www.consumeraction.gov/caw_insurance_auto.shtml) can backfire; that being said, however, you can get a great policy at an affordable price. Because of the fierce competition and the power the internet gives us to gather quotes, compare rates, and check on insurance company licenses and reputations, rates have become more affordable. You can lower them still with discounts - and good driving.