10 Ways To Reduce Auto Insurance

1) Increase your deductible. We mentioned this last week but it bears repeating. Decide that you'll pay for small accidents out of pocket and raise your deductible, say from $250 to $1,000.

2) Skip collision coverage. If you're driving and old clunker. Insurers will not pay out more than a vehicle's book value, even if it's ruined in an accident, so never pay more collision coverage than your car is worth.

3) Speak up. If you are or were in the armed forces, contact USAA (http://www.usaa.com/). The company maintains that its policyholders save up to $600 a year.

4) Take advantage of being retired or fired. If you're no longer commuting to work or if you've started to work from home, negotiate for a lower premium.

5) Buy a used car. It will cost significantly less to insure; in some cases you'll save up to 30%.

And, have your mechanic look at any used car you are considering. If you don't have a mechanic, head for an inspection center that is certified by the Car Care Council (http://www.carcare.org/). This organization also educates motorists on car maintenance and safety.

6) Ask for rarely advertised discounts. Tell the insurance company about any of the following that apply.

The driver.....

o Passed driver ed. And check with AARP (www.aarp.org/drive) about its safety program for members and nonmembers.

o Has other insurance with the company.

o Is accident-free.

o Is a college student living on campus without a car.

o Is in a car pool.

o Is a member of AARP.

o Is over age 50.

o Is insuring more than one vehicle.

o Is a member of a preferred profession (engineer, scientist or teacher, to name a few).

7) Drives a low-profile car. Hot models, all sports cars and luxury numbers - think Porsche, Carrera, Mercedes-Benz -- cost much more to insure than more pedestrian models. That's because flashy and posh have higher theft rates. TIP: For a list of the most frequently stolen cars, check with the Insurance Information Institute (http://www.iii.org/).

8) Get the right devices. Certain ones reduce costs, including:

o A hood-locking device.

o Airbags.

o A wheel-locking device.

o A security alarm.

o An ignition cutoff system.

9) Maintain good credit. In many states your credit score plays a role in setting your auto insurance premium. If you are a good credit risk, insurance companies figure you're also a better insurance risk.

10) Make the grade. Your child's academic record will come into play when you add him/her to your insurance policy. Good grades translate into lower premiums. In general, if your child is a full-time student in high school or college and maintains at least a 3.0 GPA, the cost of adding him/her to your policy could be cut by as much as 25%.

For More Information

Go to http://www.insure.com/ for an annual list of the most and least expensive cars to insure.