Review your automobile insurance at least annually.  When reviewing your coverage, consider the following ideas:

• Liability limits should be at least $100,000 for one injury, $300,000 for all injuries, and $50,000 for property damage.   Be sure to carry uninsured motorist coverage unless you live in one of the few states that has no-fault insurance laws.  No-fault insurance states generally require your insurer to pay for your damages even if someone else caused the accident.  If you do live in a no-fault state you may have to buy personal injury protection (PIP).  This covers your medical bills and  a portion of lost wages if your are disabled in an accident.
  
  
• Premiums can be reduced by raising the deductible limits on comprehensive and collision coverage.
  
  
• Before you buy a new car, find out the cost of automobile insurance--it may cause you to want to buy a less expensive car or a different model.
  
  
• Take advantage of auto insurance discounts. Discounts are given for the following reasons: (1) A good driving record, (2) the use of anti-theft equipment, (3) senior citizens, (4) successful completion of driver education and training courses, (5) multiple cars insured with the same insurer, (6) a nonsmoker, (7) a nondrinker, (8) participation in car pools, (9) the use of passive restraint devices, (10) college students, (11) low yearly mileage, and (12) students who are drivers and have good grades.
  
  
• Do not carry additional insurance coverage, such as towing, car rental insurance, death and disability benefits, or wage loss substitutes. Purchase separate life and disability policies, if needed. Drop towing insurance if you belong to a club like AAA.
  
  
• List  children who drive as occasional drivers. This will help reduce premium costs.
  
  
• Shop and compare auto insurance rates and coverage.  It pays off.
  
  
• Before you drive faster than the posted speed limit, find out how much a speeding  ticket will increase your insurance premiums.
  
  
• If you own motorcycles or snowmobiles used seasonally, obtain separate six or nine month insurance policies if it will reduce your insurance cost.
  
  
• If you lease your car, the insurer may only pay replacement cost if the car is stolen or totaled.  Replacement cost may be thousands of dollars less than the unpaid lease amount.  Consider paying a one-time premium to fill this gap.