10 Foolish Money Savers
Car Insurance

1. Keep your driving record clean. Of course it's obvious, but it's worth repeating. One accident on an otherwise clean slate can pump up your premiums as much as 50% for three years.

2. Don't file small claims. If you can afford it, pay for small repairs yourself. Also, since you're going to be paying for those little fender benders, change your deductible to a higher amount. The price difference between a policy with a $100 deductible and a $500 deductible can be as much as 30%.

3. Buy a Foolish car, not a foolish car. Any car that can even remotely be described as a "babe magnet" will cost more to insure. Besides, big retirement accounts are much more attractive than big engines.

4. Make your car safe. Insurance companies frequently give discounts for do-gooders who have opted to pay for extras like air bags, anti-lock brakes, and anti-theft equipment.

5. Get smart. Some insurance companies give discounts to drivers who have taken defensive driving classes. Besides saving money, you might even learn something.

6. Make your kids get smart. Ask about savings if your little pumpkin takes a driver's education class. Some companies also reward students who are on the honor roll.

7. Combine policies under one carrier. Most insurers would jump at the chance to sell you policies for your home, life, and car. Consider it. One-stop shopping frequently saves you money.

8. Take the bus. Make sure that you tell your insurer if you don't use your car to get to work. In fact, don't use your car to get to work. You'll save wear and tear on your car, you won't have to pay for parking, and your insurance will be less too.

9. Don't lie to your insurance company. Besides making your mom proud, you'll be glad that you were honest with your insurer. If they find out that you've fibbed about how often you drive or how many tickets you've gotten, they can refuse to pay if you get into an accident.

10. Do your homework. Be your own best advocate and actively look for the best insurance deal. Consumer Reports found thousands of dollars difference in otherwise identical policies. If laziness rules in your house, spend $12 and let CR find the best deal for you. Contact them at their Auto Insurance Price Service website.

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