Save on Auto Insurance

From about.com

The average combined rate (liability, collision, comprehensive) of automobile insurance in the US is $774.12 a year, according to the National Association of Insurance Commissioners. Checking your policies and making comparisons on a regular basis only makes sense. Where else would you shell out almost $800 every year without checking your options?
First of all, check your state's requirements to make sure you're not paying for more insurance than you need. Most insurance agencies will help you determine that, but keep in mind that their business is to sell you insurance and the more coverage they sell, the more they make.

While cutting back on unnecessary options, don't overdo it, because it could cost you in the long run.

For instance, it's commonly advised to raise your deductible to save on premiums, but in some instances that could cost you even more.
Do shop for discounts, though. Some familiar ones are:

Accident free drivers discount
Discount for insuring your home and auto with the same company
Multiple auto discount
Good student discount
Nonsmokers discount
Driver's education discount
Defensive driving course discount
Passive restraint discount (for vehicles with air bags or automatic seat belts).
Even if not specifically discounted, these things will help determine your policy cost.

According to the Washington Post, one car in every two is involved in an accident each year. While I was unable to verify this statistic, (maybe it only applies to Washington, D.C.) it's still something to take into consideration, because if you do have an accident, your rates will go up.

Of course, no one plans on getting into an accident, but driving an automobile is a gamble in which you can figure the odds with a little sleuthing. Insurance companies charge more for these things, because they know there are more accidents in these situations:

Teenage drivers, up to 21.
Single driver as opposed to married
Males, especially young ones (to 25)
"Sports" type vehicles as opposed to "family" type.
High mileage drivers, meaning that you drive several miles to work or school each day.
Type of driving. A delivery route in the city is more dangerous than sightseeing on a country road.
To put this into practical terms, if you're a woman, over 25, married, live in a rural area, and only drive once a week for shopping and visiting, you'd be better, statistically anyway, to raise your deductible as high as your insurance company will allow because you probably won't have an accident.

On the other hand, if you are an 18 year old guy with a red Camaro and you drive a hundred miles round trip to work every day, your insurance will see you as an accident waiting to happen and will charge you accordingly.

A lot of what you pay for insurance is your choice, so choose the frugal way!