Shop and save on auto insurance

Consumers looking for ways to cut their spending should start by comparing quotes on auto insurance. According to the AAA's Your Driving Costs study in 2010, the average annual cost of a typical auto insurance policy for a sedan is $1,031.

The cost of auto insurance is based on a variety of factors including your driving record, your age and marital status, the type of car you are insuring and where you live. The Insurance Information Institute reports that car insurance costs are highest in Washington, D.C., followed by New Jersey, Louisiana, New York and Florida.

Even if you live in an area with high-cost insurance, comparing auto insurance quotes from various companies can be the fastest way to save you money. When you call several companies or search for auto insurance quotes online, make sure you are comparing the exact same policy. Some states require a minimum level of auto insurance coverage and lenders typically require coverage until the car is paid in full. But you may want to do some research yourself to make sure you have the right coverage for your needs.

In addition to comparing auto insurance quotes, check out the auto insurance company's reputation. If you have to make a claim, you want to be sure you will be getting good customer service.

After comparing quotes from a variety of auto insurance companies, there are other steps you can take to reduce your auto insurance costs. Two steps, though, may be too big to take just to reduce your auto insurance costs: getting married or moving to a location with lower car insurance rates.

Reduce your rates by driving carefully and keeping a clean driving record. You can also take a defensive driving course, buy a car alarm and buy a car with safety features such as antilock braking systems. You may be able to reduce your auto insurance costs by bundling your car and homeowners' insurance together. Take the time to shop for auto insurance and you can find a way to save money.

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