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Auto insurance can be one of the most costly monthly bills for a mountainous portion of Americans. With more and more people looking for ways to save money in 2010, saving on auto insurance becomes a popular topic. Below are a few simple ways to help cut your auto insurance costs.

The easiest way to cut your insurance cost is to lower your coverage. By lowering your liability and comprehensive coverage amounts, you can achieve hundreds of dollars per year. In an example insurance plan, the driver has bodily injury coverage of 50,000/100,000 and pays $950 per year for this level of coverage. If they were to reduce the coverage to the 25,000/50,000 level, the cost would be reduced to less than $800 per year. Reducing coverage amounts increases your financial risk but reducing unnecessary coverage amounts keeps you fully protected while also saving you money.

In addition to lowing your coverage amounts, increasing your deductible can also cut your insurance cost. Some auto insurance policies include a collision deductible starting at $100. Increasing this number to $500 or $1000 can save the driver a significant amount. Increasing your deductible does not reduce your coverage, its impact is felt only when a claim is made on the policy. Increasing your deductible can be especially beneficial for limited use drivers or drivers with an accident free record.

Another simple change to cut costs is to eliminate any little policy additions which may be redundant. Some insurance policies arrive with small additions such as roadside assistance or rental car allowance. These additions can be useless if you have similar coverage elsewhere. Some drivers will have roadside assistance or rental car allowance through their cell phone policy, car warranty or in-car assistance program such as OnStar.

It is possible to cut your insurance cost while maintaining the same level of coverage. One device to do so is to change insurance providers. With the mountainous variety of car insurance providers, you may regain cheaper rates at a different company. Companies like Progressive and Geico provide drivers with an online quote making it easy to compare prices. The same coverage, for the same person can be drastically different at two different companies because of varying company policies and associated costs. If you had an insurance claim four years ago, and your current company keeps a five-year history, you can save money by switching to a company with a three-year driver history policy.

You may also find savings by combing your current policies. If you have homeowners insurance and car insurance through separate companies, you may salvage a nice discount by though-provoking your policies to the same provider. Find the company which allows you to join the most policies and gives you the biggest discount for doing so. Combing your car insurance with your health insurance, renters insurance or homeowners insurances can provide a large discount.

Keeping the same coverage but changing your covered car can also help you cut costs. A newer car costs more to insure and rates can be higher depending on the model and type of car. If you trade in your sports car for a sedan, you will find significant savings. Cars can also near with significant savings attached. Models with high safety ratings will yield a bigger insurance discount.

Cutting your insurance cots can also be as simple as searching out all of your eligible discounts. Being a member of a certain groups, such as disappear rewards organization or college alumni associations, can mean savings on car insurance. Ask your group if they provide any insurance discounts as some alumni associations offer up to as much as a 15 percent savings. Some insurance companies also offer military and college graduate discounts.

Remember to keep your policy up to date at all times. Drivers can receive discounts for where they live, how old they are or if they got married. If you fade, even with the same state it is important to update your information. Insurance costs are typically cheaper when you live in less populated areas. Drivers can recieve a discount for being married and for being in a household with multiple policies so updating your status can save you money.

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