New era of budgeting and cutting expenses
The state of the U.S. economy is making people feel uncertain about the future. They do feel certain about one thing; things will never be the same as they were last year, last month, or even last week.

Learn the tricks of the insurance industry, become more informed and involved. To guard against wasting money, consumers need to be more vigilant and informed when they make important purchases such as car insurance.

Where to get reliable information
Learn which car insurers are the most economically stable through the Standard and Poor's Insurance List.

Choosing a deductible
Your deductible is the amount which you must pay on a claim before the insurance company reimburses you for the remaining amount. The less out-of-pocket you want to pay on claims, the higher your premium will be. It makes sense to choose a higher deductible if you want a lower car insurance rate.

When is comprehensive a wise choice?
When you purchase a car insurance policy, you need to choose which types of coverage you will need. Most of us will pick the basic collision and liability package. There are situations in which a comprehensive policy would be the right choice.

Comprehensive coverage may be required if you are financing a new car. Your lender does not want you to take any chances when it comes to protecting their collateral. If you live in a low lying area, such as in the Mississippi flood plain, comprehensive coverage would be a wise choice. How about those who live in high crime areas where the risk of vandalism or theft is elevated? Tornado Alley is another high risk area.

Understanding the state minimum coverage
Each state assigns a minimum allowable amount of coverage set forth as a ratio designated by three numbers.

• The amount of liability coverage to pay for an injured occupant
• The total amount of injury compensation per accident
• The total amount to compensate for property damage

Liability Insurance
If you are at fault in an accident, your liability insurance can pay medical bills for the victims. In today's litigious society, it makes sense to carry more than just the minimum liability coverage. A seemingly minor accident, if it involves an injury to an elderly person or a child can result in more severe injuries and larger medical bills.

Collision
Although modern vehicles are engineered to protect occupants from serious injury better than ever, those ingenious crumple zones absorb the impact of a collision by compressing and deforming. Repairs on today's vehicles are usually much more expensive due to that fact. If you are driving a new car, you will want ample collision coverage for this reason.

No-fault
In order to expedite medical care and compensation to providers in the event of an accident, some states require insurers to provide coverage for at least some medical treatment regardless of who is at fault. No-fault insurance can be used as an adjunct to your regular medical insurance, in that it can pay for items not covered, such as co-pays and replacement services.

Your risk
The name of the game in car insurance is risk. The higher the perceived risk you represent to your insurer, the higher your premium will be. Teenagers are the highest risk and women, ages 25-35 are the least risky, at least according to actuarial science. In addition to age and gender, there are various other factors which insurers take into account when calculating a car insurance quote.

Insurance companies use your credit score to predict your likelihood of filing an insurance claim. They have the statistics to back them up when they charge a higher rate to those who have a below-average credit score. Beefing up your credit score can result in lower car insurance rates.

Taking a defensive driving or refresher course can result in improved rates as well. Erase a minor infraction on your driving record and your rates will go down.

Saving dollars on car insurance also requires research on your part. Many insurers offer discounts to drivers who have been with the same insurer for a number of years, especially if they have not filed a claim. You can also score a discount for installing a theft deterrent or theft recovery system in your car.

Take a look at your policy every year to make sure those rates are being adjusted for the depreciation of your vehicle. Consider dropping coverage for collision on a car that is valued under 10 times the annual collision premium.

With a little research and comparison shopping, you can save money on your car insurance and get better coverage at the same time.