• Don’t make monthly payments. Many companies offer you the option of paying
your car insurance bill in installments instead of a one-time bill payment for the full amount of your premium. But that convenient option comes at a price. Companies usually tack on a service fee to cover the cost of handling those smaller payments. So while it might be tempting to write a smaller check today, keep in mind that you’ll end up paying more in the end. For instance, a $600 insurance policy for six months might cost you $110 per month in six installments. That’s an extra $60.

• Up the deductible. The deductible is the out-of-pocket money that you must pay toward a claim before your insurance kicks in. The higher your deductible is, the lower the premium. You can save 15% to 30% on the collision and comprehensive portion of your premium by increasing your deductible from $200 to $500, the Insurance Information Institute says. Raise your deductible to $1,000, and you might save 40% or more on that part of your premium. But remember — if your car is damaged in an accident, you’ll need to ante up that money before your insurance policy covers you. So don’t raise the deductible so high that you won’t be able to pay it if you need to.

• Reduce coverage on older cars. If you are driving a beater car that’s only worth $1,000, raising your collision deductible to $1,000 isn’t going to be much help. Also, perhaps it’s not worth carrying collision insurance at all if the car wouldn’t be worth fixing after an accident.

• Double up. Most companies offer a discount if you purchase more than one policy from them. So check to see if you could save by buying your car insurance and your homeowners or renters insurance from the same company.

• Shop Around. Every six months or so, shop around to see if you can get a cheaper quote from other companies. Web sites like Insweb.com and Insurance.com allow you to compare quotes from several companies. People who compared and switched insurance companies saved an average of about $300 on a six-month policy, Insweb said. You also might find cheaper coverage through your local agent or by buying directly through the insurance company’s Web site.
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