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With a stagnant economy, prices on everything rising, the constant threat of high gas prices, and recent sales and state tax hikes on our automobiles has made it important to find ways to save anywhere we can. A big and easy area to save lots of money is auto insurance. It is amazing that regardless of the commercials like Geico and Progressive telling people to shop for the best rate that 90 percent or more never do. You need to make sure you are getting the best deal possible. You work too hard to through easy money away and make insurance representatives and executives rich. Recent research shows that you can save hundreds or even thousands of dollars just by making a few phone calls and shopping around a little bit.

According to the Insurance Research Council the average savings by shopping around auto insurance carriers is $847. That's $847 per year and that is a lot of money to throw away. To start saving first call your auto insurance company and ask if you are getting all the discounts you qualify for. Most will happily oblige you on this as they want to keep their customers happy. Discounts could be for things like no accidents, age, sex, driving history, college student, even good grades (I believe just Allstate has this one right now). Discounts of 2 percent to 5 percent may not seem like much but could easily become several hundred dollars or more per year really fast. The biggest deduction is usually a clean, accident free driving record and that can be from 4 to 20 percent or more per year in savings. Just be careful as it only takes 1 infraction to nullify most or all of these discounts.

Check and see if you have any points on your license. If you do not remember if you have had a recent (last 4 years in most cases except DUI), just call your auto insurance agency. They can tell you exactly how many points, why or what the infraction was and what you can do to fix or reduce them. Many auto insurance agencies or companies sponsor safe driving classes if yours does not a simple call or visit to your local DMV will reveal many classes that can remove or lower points and reduce insurance costs or award deductions. Many of these classes are only a one day affair for 4 to 5 hours. Some are free and some may cost $20 to around $50. Regardless, in what they will save you in one year alone it is well worth it.

And the big one, shop around. You need to do this every few years even if your current auto insurer is the best, they may not be in two years. Rates are constantly changing along with crash test and theft recovery numbers. It also depends on where you live. If you have recently moved or are planning a move then shop your auto insurance. The same auto insurance company may have totally different rates (and probably does) in different cities. Even if you have had some recent infractions or just received one, shop your rate. You need to do this as you will save big money. The average savings for all insured persons that shop their rate is $847. The average for those that don*t is obviously a big fat zero. Definitely include Progressive and Geico in your shopping as they will usually have the lowest rates and best service. I have personally found Progressive to have the lowest rates in New York and North Carolina.

It is also a good idea to drive safely and to continue to drive safely (non aggressively). It will not only save you big on insurance, but it could save your life or the life of someone else. And never pass a stopped school bus. There is a reason why its 4 points or more on your license, respect school buses and kids for they may not always see you and if something bad were to happen you would never forget or forgive yourself.