Fatten Your Wallet: Cut Insurance Costs

Feb. 2, 2009 — -- In the last couple of weeks, more than one insurance company has reported that revenue is down because Americans have cut back on their insurance policies to save money. And now here I come to tell you that cutting back your car insurance is a great way to save money in tight times.

Before the insurance folks start screaming, let me make it clear: Insurance is important because it protects you from true financial devastation. But there are some ways you can cut costs without cutting coverage.

For one thing, experts say you can find big differences in car insurance prices if you shop around. So many of us just fall in with the company our parents used, but that's not a good idea. If you've been with the same insurance company paying the same premium for a long time, do yourself a favor and make a few calls. Market conditions may have evolved and you could be paying too much.

It's particularly important to reprice insurance policies if your circumstances change. For example, if you switched to public transportation instead of driving to work during the gas price spike of the summer, you will almost certainly save on your car insurance.

If you only have time to make one call, call an independent insurance agent that can quote you prices from multiple different insurance providers.

You can find independent agents here: www.trustedchoice.com. Just make sure you don't go with such a rinky dink company that you risk getting poor service when you need to utilize your policy after a wreck.

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There are some classic ways to save on car insurance.

You can save on your insurance before you even buy a car.

What? That's right. You should really find out how much it will cost to insure a particular model before you go out and get one. Some cars are expensive to repair. Others attract irresponsible drivers.

For example, say you're young, single and you've had a couple of tickets. If you buy a muscle car with a convertible top you could pay up to $14,000 a year to insure it.