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When trying to save money on car insurance first you want to make certain that you are not over insured. By this I mean paying for insurances that you will likely never use. Some insurance companies sell policies that far exceed your needs.

Some things that come to mind are property damages that exceed $100,000.00. If you happen to cause a six car pile up then you may need this amount, but let's face it very few of us will ever find ourselves in that situation. Even if this does happen, you should only be held liable for the car that you hit not the one that hits him or the next ones down the line. Their insurance should cover that.

Also check those deductibles. If you are someone that files claims often then a low deductible may be right for you. The lower your deductible the higher your premium is. So if it has been five years since you filed a claim against your policy you might be safe considering raising that deductible to $500 or even $1000.

Keep your driving record clean. I think this goes without saying, but if you get a traffic ticket or cause an accident you will have higher premiums to pay. Watch your speed, wear your seat belt, and never ever drink and drive.

With all of that said, I will also caution you against taking out the minimum coverage required by law. In some cases you may have no choice if this is all you can afford. You should know that in some states if your insurance company pays a claim but does not pay all that is owed the other party can sue you for the unpaid portion of their claim. This might be the case if there was an extremely high hospital bill. If your maximum on medical is $100,000 and the person's bill was $150,000 then most states will allow them to sue you for the remainder. If you are a homeowner they can place a lien against your property. So it is just as important to make sure that you are not under insured either.

Learn more about this author, Regina W.
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