How to save money on car insurance- it may not be what you think

Posted by Amy Kelch-

LOUISVILLE, KY (WAVE)- In these tough economic times, most people would love to save money on car insurance. Odds are you can, but most people, about 75% of us, haven't shopped for a better plan in the past year. While many companies such as Geico and Progressive promise to save you money on car insurance, some of the best advice can be to just shop around.

"We've not found that one company always delivers the lowest rates," said Consumer Reports' Greg Daugherty. "So you want to get quotes from a bunch of companies."

There are web sites to make that process easier. Two good ones are and Other ways to save on car insurance are to consider dropping rental reimbursement if you have a car you can use while yours is being repaired. Drop roadside assistance if you can get a better deal from AAA or another auto club. Also, drop collision coverage on older cars.

"If the insurance costs more than 10% of your car's value," said Daugherty, "you'll pay more for insurance than you'll ever get back if your car is damaged or totaled."

Consumer Reports said one way you should not try to save is by cutting back on liability coverage.

"You could face financial ruin if you're at fault in an accident," said Daugherty. "There are large damages. Stick with at least the standard coverage."

Standard liability coverage pays bodily injury of up to $100,000 per person and $300,000 per accident and property damage up to $100,000. If you're driving less than you used to, let your insurer know. That can save some money, too.

In addition to getting a low rate, an insurance company that delivers good service and pays claims promptly is ideal. Consumer Reports surveyed more than 28,000 of its readers and found overall satisfaction with insurance companies is high, but some companies earned higher scores than others. So make sure you do your research.

If you want to save money on car insurance, you may want to look beyond the commercials.

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