Raise your deductible

What's your current deductible? It should be at LEAST $250, unless you're one of those drivers that gets into an accident every year, then there is no hope for you in this area . Call your agent tomorrow and find out what the difference is in your premium if you raise your deductible. If it costs you say $75 to have that low $100 deductible rather than having a $250 dollar deductible, then you are effectively buying only $150 of coverage with that $75!! That is bad. If you only file a claim every 3 years, it is actually costing you an additional $75 for that low deductible. BEWARE, don't raise your deductible high if you don't have the money set aside incase you do have an accident.

Shop for a new company

Have you been with the same company for a long time? When was the last time you shopped for a lower rate? If you have a good driving record and are currently insured with a major insurance company, call a couple of other reputable companies. Make sure you have a copy of your existing policy when you call so you can be sure to get a quote based on the same coverage. BEWARE some agents will give you a quote based on lower levels of coverage to lead you to believe their rates are a lot lower, MAKE SURE YOU ARE GETTING A QUOTE FOR THE SAME COVERAGE. If you do get a quote that is lower, have them fax or mail a copy of the quote, then call your existing insurance company to see if they will match it. Many times they will. You will have saved money and avoided the hassle of switching companies

Drop collision and/or comprehensive coverages on older cars. If you own a car that's worth less than $1,000, you'll probably pay more for the coverage than you would ever collect on a claim. Your bank can tell you how much your car is worth.

Buy a "low-profile" car. Cars that are expensive to repair or that have a high theft rate generally have higher insurance costs.

For a comprehensive explanation of the various terms used when discussing auto insurance, click here.

1. If you want insurance protection only, buy a term life insurance policy.

2. If you want to buy a whole life, universal life, or other cash value policy, plan to hold it for at least 15 years. Cancelling these policies after only a few years can more than double your life insurance costs.