State-by-State Requirements:

Not all states require you to have automobile insurance, but all states do require you to prove that you can pay specified amounts if you cause bodily injury or property damage while driving. Your proof would be insurance or large amounts of cash or some other security. Without one of these, you may lose your driver's license and registration. Visit the Insurance Information Institute's web site at www.iii.org to find the specific auto insurance coverages required by each state.

Savings Check List:

• Comparison Shop. Prices for the same coverage can vary significantly from company to company. You should get at least three different quotes. Call your state insurance department for ideas about companies and agents to contact. To find a listing for your state's department, visit the National Association of Insurance Commissioners' (NAIC) web site.
• Also, check the financial ratings of insurance companies with one of the major ratings services. The following provide free information on the claims-paying ability ratings of companies: Standard & Poor's at www.standardpoor.com, 212.208.1146; Duff & Phelps Credit Rating Co. at www.dcrco.com, 212.908.0200; and Moody's Investor Service at www.moodys.com, 212.553.0300.
• Ask for Higher Deductibles. Deductibles represent the amount of money you pay before your insurance company fulfills a claim. By requesting higher deductibles on collision and comprehensive (fire and theft) coverage, you can lower your insurance costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive cost by 15% to 30%.
• No Comprehensive and/or Collision Coverages on Old Cars. It may not be cost effective to have collision or comprehensive coverages on cars worth less than $1,000 because any claim you make would not substantially exceed annual cost and deductible amounts. To determine the value of your car, call your bank or refer to the Kelly Blue Book to car buying available at a library or at www.kbb.com.
• Buy a "Low Profile, Low Maintenance" Car. Cars that are expensive to repair, or that are favorite targets for thieves, have much higher insurance costs. See the National Insurance Crime Bureau at web site www.nicb.org for a list of the U.S.' top stolen vehicles.
• Low Mileage Discounts. Some companies offer discounts to motorists who drive fewer than a predetermined number of miles a year.
• Location Considerations. Premium costs tend to be lowest in rural communities and highest in cities.
• Automatic Seat Belt and/or Airbag Discounts. Some coverages provide discounts if you have automatic seat belts and/or airbags.
• Anti-Lock Brakes. Anti-lock brakes improve steering control and stability when a car is brought to a stop, thus reducing accidents. Some states, including Florida, New Jersey and New York, require insurers to give discounts for cars equipped with anti-lock brakes while some insurers have a nationwide discount in place.
• Other Discounts. Some insurers offer discounts for a variety of other qualifications like:
  - no accidents in three years;
  - drivers over 50 years of age;
  - driver training courses;
  - anti-theft devices;
  - good grades for students; and - having more than one car insured with that company.
• Specialty Coverages. Adding supplemental insurance coverages like towing and labor or car rental reimbursement to your basic auto insurance policy may save you money. For example, for an average of $1 or $2 a month added to your auto insurance, you can purchase coverage that will pay for your rental car while your car is being repaired from an accident. If you have this or some other specialty insurance, be sure to remind your insurance company or agent when you file a claim.