Cut your car insurance premiums by as much as 20%.

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Author: Nance-Nash, Sheryl

Want to trim the cost of your auto insurance by one-fifth? Smart, aggressive shopping will do it. Indeed, Americans are now so savvy about shopping for policies that auto premium increases have eased nationwide. According to a recent study by the Consumer Federation of America, since 1989 the cost of car insurance has accelerated by an average of only 3% a year--down from the 10% annual hikes of the '80s. Today's average annual premium: $800. "Consumers have switched to lower-cost, more efficient insurers by shopping around," says Robert Hunter, CFA's director of insurance. Experts recommend these steps to shave 10% to 20% from policy costs:

• Get price quotes. To find the least expensive insurer, call your state insurance department for a free guide that ranks insurers by price--most states have them. After selecting for price, make sure the company is considered financially sound by rating agencies like A.M. Best. You'll find its guide in most large libraries.
• Check out commission-free insurers. Direct writers do not charge commissions, because they sell to consumers directly over the phone. Such insurers can cut 5% to 15% off your premium. Two direct writers with top reputations are Amica (800-622-6422) and Geico (800-841-3000).
• Ask about discounts. You probably know that air bags and antitheft devices will reduce your premiums 10% to 20%. But most drivers don't realize they can also qualify for lower rates if they are over 50, take a safe-driving course or have driving-age kids whose average school grade is B or better.
• And ask about group member discounts. If you belong to an organization such as the American Legion, a credit union or an auto club, you may be able to garner discounts of 5% to 10%.
• Buy only what you need. Raising your car insurance deductible from $250 to $500 will cut your collision premium 15% to 30%. Generally, collision insurance wastes your money if your car is older than five years and the premium exceeds 10% of the car's resale value. You can find the resale value in the Blue Book, the official used-car guide available in public libraries and at most banks. Cancel your collision coverage, and you might cut your premium by 25%.

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BY SHERYL NANCE-NASH