1. You can save several hundred dollars a year by purchasing auto insurance from a licensed, low-price insurer. Call your state insurance department for a publication showing typical prices charged by different companies. Then call at least four of the lowest-priced, licensed insurers to learn what they would charge you for the same coverage.

2. Talk to your agent or insurer about raising your deductibles on collision and comprehensive coverage to at least $500 or, if you have an old car, dropping this coverage altogether. Also ask about available policy discounts. Taking these steps can save you hundreds of dollars a year.

3. Make certain that your new policy is in effect before dropping your old one.

Web Resources:

http://www.naic.org/state_web_map.htm

or http://www.consumer.gov

We would like your feedback on this Personal Finance Frequently Asked Question.

Browse related Faqs by tag: personal finance, consumer protection