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5
Things You Can Do to Lower Your Auto Insurance Rates

While it's difficult to save money on homeowner's insurance, general liability insurance or health insurance, we all can do something to bring down the price of auto insurance.

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Hear me roar, for I am the insurance king. It's not something I set out to become. I suppose it just happened -- like going bald. Maybe it's because buying insurance is as inevitable as death and taxes. And while we all cringe at the idea of purchasing something that we hope we never use, let me tell you from experience, insurance is nice to have when you need it. Of course, arguing with insurance companies is not so nice, but that's a story for another time.

What's neat is that you can buy insurance for just about anything. Jimmy Durante, the old-time actor with the huge nose, insured his prized schnoz for $440,000. That's a spit in the bucket compared to the price allegedly placed on Jennifer Lopez's butt. Reportedly, the shapely siren insured her best asset for $27 million, although she denies any such thing [source: Lyons].

Although I don't have any body parts worth $27 million, or 27 cents for that matter, I am insured up to my eyeballs. If I'm sick, I'm insured. Work-related issues, I'm insured. If a hurricane barrels down the road, I'm insured. If I die, I'm insured.

While it's difficult to save money on homeowner's insurance, general liability insurance or health insurance (and I've tried), we all can do something to bring down the price of auto insurance, whether bought from a gecko with an accent, a brunette named Flo or the good hands people.

The first thing you should do is know what your state requires. Some states, such as New York, are "no fault" states, and others like New Jersey, require that you buy Personal Injury Protection.

Regardless of what state you live in, auto insurance policies combine many types of coverage. For example, liability coverage pays for injuries and property damage to others. Liability also pays for such things as court costs, and pain and suffering for the injured. Most states require a minimum amount of liability protection [source: Travelers].

Auto insurance also covers medical expenses regardless who is at fault. Collision pays for damages to your car if it hits another car. Comprehensive coverage pays for damage if the car is stolen or damaged by a fire, vandalism or other non-crash related circumstances [source: Travelers].

What you pay for auto insurance depends on a lot of things, including your driving record; how much you drive your car; where it's parked; where you live; what type of car you drive; your age; your sex; your credit score; and of course, the type and amount of coverage.

Yes, auto insurance is complicated, but with the helpful hints on the following pages, you might be able to save a few bucks.

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