You can likely chop your car insurance bill in half

If you're looking to trim your expenses as much as possible, you might be eying your insurance bills. There are many ways to tinker with your car insurance coverage to chop your premium down to a bare minimum. You could call your insurance company and:

* Drop your liability limits to the minimum level allowed by state law
* Drop your collision and comprehensive coverages
* Keep collision and comprehensive but increase your deductible to $1,000 or more
* Drop your uninsured motorists (UM) coverage

How low can you go? You can likely chop your car insurance bill in half by dropping your liability limits from "recommended" limits of 100/300/50 down to 25/50/10, dropping collision and comprehensive, and dropping UM (see chart below for average savings). Many states have minimum liability limits of 25/50/10, but others are higher or lower. See the minimum levels of car insurance you are required to buy.
How low can you go?
Average national insurance premiums
Vehicle Coverage of 100/300/50 with comprehensive & collision, UM included Coverage of 25/50/10, no comprehensive or collision, no UM Savings
Honda CR-V $834 $426 49%
Honda Odyssey $786 $338 57%
Chevy Tahoe $878 $420 52%
Ford F-series pickup $905 $438 52%
Toyota Camry $885 $412 53%
Chrysler Town & Country $768 $355 54%
Audi A8 $1,268 $426 66%
Source: bestinsurance4u.com research.
Average national premiums calculated for a 40-year-old single male driver. Policy limits of 100/300/50 assume a $500 deductible. Model year 2004 was used for all quotes because collision and comprehensive are often dropped on older cars. We used states with liability minimums of 25/50/10; some states require higher minimums.

But remember this: Dropping your car insurance to a bare minimum opens you up to substantial risk.

"You want to consider that very carefully. You’re trying to protect the assets you have," says Robert Passmore, spokesperson for the Property Casualty Insurers Association of America (PCIAA), an industry trade group. If you have a house, savings and investments, they could be put at risk if you cause a large accident where damage exceeds your insurance limits. And if you've dropped your UM coverage, a driver with no or inadequate insurance could wreck your finances too.

Passmore notes that the most expensive coverage dollars are the first dollars. In other words, $100,000 in coverage does not cost twice the price of $50,000 in coverage. "It’s like getting a volume discount," says Passmore.

Another quick way to save money is to comparison shop and change companies based solely on price. Before you leap to another insurer, check its track record. You won't receive more value for your insurance dollar if your new company has poor customer service. Many states release "complaint ratios" showing the relative number of consumer complaints against each company. bestinsurancequotes4u.com has contact information for state insurance departments.

recession in full swing and unemployment still moving higher

With the recession in full swing and unemployment still moving higher, consumers are looking for opportunities to save money any way they can. The most common budget items most look to trim first are things like groceries, gas and other expenses that vary month to month. But for some reason insurance costs, which are generally fixed, are often ignored.

That could be a costly mistake. Simply reviewing your auto and homeowners insurance policies and making a few adjustments could save you more than one hundred dollars a month. But where should you start?

First, take a hard look at your deductibles. Raising your home and auto insurance deductibles from $250 to $1,000 could reduce your premiums by 25 and 40 percent, respectively. You'll incur higher out-of-pocket costs should you need to file a claim, but the amount you'll save on your premiums may be well worth it.

Savings: Up to $45 per month. Time: Approx. 15 minutes

Second, carrying your home and auto insurance policies with a single insurer could save you even more. According to the Insurance Information Institute, converting to a multi line policy could save you as much as 15 percent on each premium. Plus, you'll have one fewer bill to pay each month.

Savings: As much as $20 per month. Time: Approx. 30 minutes

Third, if you haven't compared insurance providers in more than a year, you're overdue. And the simple act of shopping around can save you money instantly. There are a number of ways to get quotes, but one of the easiest ways is to let those quotes come to you by using an online comparison site such as WWW.bestinsurancequotes4u.com.

Savings: As much as $50 per month or more. Time: Approx. 15 minutes

Total Savings: Up to $115 or more per month

Total Time: Approximately one hour
learn more about ways to save on your auto and homeowners insurance, visit the bestinsurancequotes4u.com