Since auto insurance is mandated by law and if you own a car, it is one thing you will have to acquire and it can be costly. Not all insurance companies are created equal so the following saving tips on car insurance may vary depending on the company and it policies.

• Self-insured. One of the best ways to save money on auto insurance is to be self-insured as much as you can. You can do this in several ways. First, a higher deductible will decrease you over all cost. If you can put the deductible amount aside in a savings account not only will you pay less on your policy you will earn some interest too. Second, the removing of towing can save you $10 – $30 a year over the life time of your policy, while one tow will cost around $100. If you maintain your car well, pay attention not to run out of gas and lock your keys in your car, you should be able to get by with out the towing coverage. In the event of a collision, towing is usually always covered under the collision portion of your policy.
• Plan ahead. Just because you buy a small economy car that does not always equate to cheaper insurance. How likely your vehicle will be damaged, What type of damage can your vehicle inflict, how often is a particular vehicle stolen, and how bad will the drive/passenger be injured are all factors in determining the cost of coverage. Before you buy a particular car find out what it cost to insure it.
• Insure with one company. Most if not all companies provide discounts for the more types of policies you have with them.
• Pay every six months. By paying monthly companies charge $3 – $5 per month for billing charges. If you have to pay monthly use auto pay the amount for billing is less.
• Research. Just because a company advertizes that they can save you money it may not be true, however it may. Don’t be afraid to compare companies and switch if you find a cheaper one. You may have developed a good relationship with your current company; however a cheaper policy with the same coverage will save you money.