Clipping coupons and eating out less can save you a lot of money. But watching what you spend in areas other than food can pay big dividends, too. One of those areas is auto insurance. At least once a year, you may want to take out your auto insurance policy and make sure you're not overpaying for coverage. Here are a few money-saving tips:
Shop around • Pick a handful of reputable insurance carriers and ask each for a quote on the exact same coverage. Premiums can vary widely among companies. You could save hundreds even thousands of dollars a year with another insurance company depending on how many drivers and vehicles are in your household.
Ask for a better deal • If your credit or other underwriting factors have improved since the last time you were issued a policy, you may qualify for lower rates with your existing carrier. Because many insurance companies use credit information to determine rates for individual customers, generally, the better your credit, the lower your premium. Carriers base this on research that suggests people with better credit histories make fewer claims.