There's no question that we are facing tough economic times and many of us can no longer afford to go about the normal daily routine without carefully considering every dime. It's time for an auto insurance tune up.

In fact, most Americans don’t even have a budget to look at so finding ways to cut back can seem like a daunting task.

As with everything else we do, the key to keeping financial stress to a minimum is tackling one thing at a time.

Before you spend hours with a calculator trying to figure out how much you spend on lattes and other little things, let’s travel the road to big savings by looking at one of the biggest bills you’ve got: car insurance.

Auto Insurance Tune Up Your Policy and Save!

Many of us chose our car insurance policy years ago and haven’t looked back since. Tisk! Tisk!

You have your oil changed every 3,000 miles (ahem…), right? Just as with routine car maintenance, savvy consumers tune up their auto insurance each time it comes up for renewal.

So pull out your policy and let’s get started.

Comprehensive and Collision Coverage

Do you need it?

If you’re paying for comprehensive and collision coverage on an old car you may be paying more for insurance than the car is actually worth.

Crunch the numbers: Add what you’re paying for comprehensive and collision coverage. Multiply it by ten. If your car is worth less than the total, seriously consider dropping the coverage.

Deductibles

Comprehensive and collision coverage come with deductibles. When you file a claim, the deductible is the amount of money you will pay out of pocket before your insurance company picks up the tab. For this reason, the amount you choose makes a HUGE difference when it comes to your premium.

• Collision coverage is generally sold with a deductible of $250 to $1,000.
• Comprehensive insurance is usually sold with a $100 to $300 deductible.

Doubling your deductibles is the quickest way to cut down on your car insurance costs. Going from a $250 to a $1000 deductible can save you up to 40% on your policy.

Shop Around

Now that you know what you really need, get out there and shop around for at least three different quotes.

Your life situation may have changed since you last gave yourself an auto insurance tune up.

Example: your teenage son may have gone away to college since you last checked your policy – taking him off could save you hundreds alone!

Even if you want to stay with the same insurer in order to keep the multiple-policy discount (what you get if you have, let’s say, your homeowners and auto policies under the same company) you can take those new quotes and discuss changes to your current policy coverage that will lower your premiums.

Cleaned Up Your Credit?

Has your credit score improved since you last signed up for auto insurance? If you’ve been paying your bills on time and getting that credit history in shape, a higher score could mean you are eligible for lower rates.

Insurers believe there is a relationship between your credit history and your level of risk on the road.

According to a recent survey by Consumer Reports a driver with top scores could save up to 31% on premiums than if credit scoring wasn't factored in. Those with low scores could pay as much as 143% more.

More Ways To Save

• Drive Less Pay Less: Some companies offer discounts to drivers who have a lower annual mileage than the average. So if you have a short commute, telecommute, participate in a carpool or do anything else that translates into less driving – a discount may be in store for you.
• A Good way to Tweek your Auto Insurance Tune Up is to Pay In Full: Have you been paying your insurance premiums in monthly installments? If so, you are being charged a fee. As long as it's not a hardship to gather the cash, paying for your 6-month policy in one lump sum will save you in the long run.
• Group Discounts: Members of certain organizations and professions (teachers, veterans, engineers) often receive group discounts. Check with the professional groups or associations where you belong to see if they have a group discount and consider taking advantage of it.

A good auto insurance tune up will certainly pay for itself so take the time and add the process to your recession busting plans.