Whacking auto insurance bills

By Suze Orman

Given that the price of a gallon of gas has risen about 80% over the past five years -- including a 30% jump in the past year -- filling up these days requires emptying out your wallet.

And with the price of oil stuck near $70 a gallon, it's not likely that we are going to see any substantial relief at the pump in the near future.

But I know a sure-fire way you can offset your gas costs: focus on reducing your car insurance costs. While you can't control the price of gas, there are plenty of moves you can make to lower your car insurance premium; for many of you I am confident we can shave a few hundred dollars off your auto insurance rates.

The strategies below cover what you can do now with the cars that you already have. Of course, one of the best moves you can make down the line is to think about fuel efficiency when you make your next car purchase.

And when you're in buying mode, check out the cost to insure the cars you are considering to buy; the make and model you choose has a huge impact on your car insurance costs.

But I want to help you right now with the cars that are already in your garage:

Boost your deductible: If you switch from a $250 deductible to $1,000 you could slash your premium cost by 15% to 30% or more. With the average auto insurance premium hovering around $1,000 that could save you a couple of hundred dollars a year.

GET LESS MILEAGE OUT OF YOUR POLICY: Many insurers will reduce your premium cost by 5% to 10% or more if you don't drive your car that much. The rules vary at each insurer, but putting less than 10,000 or 12,000 miles on your car a year could qualify you for the discount.

If the recent surge in gas prices has encouraged you to use public transportation, do the math on how that is going to affect your annual driving mileage.

If you can get your mileage way down, then give your insurer a call and get your insurance rates cut.

If you and your partner have two cars, but really need only one for the long-distance commute, insure one car for higher mileage, but commit to keeping the other car's mileage low enough to qualify for the discount. That could mean an extra $50 or $100 in your pocket.

You should also check with your insurer if you have recently retired or decided to start your own home-based business.

Switching your driving profile from "commuting" to "pleasure" will result in a lower premium. The same is true if you once used your car for business, but now use it for commuting or pleasure: Remove the "business" designation and you could get a nice premium cut.

Home in on a Discount: It definitely pays to bunch your auto insurance and home insurance with the same company. You can qualify for a discount of up to 30% on the combined premiums by using just one company.

COUPLE-UP ON YOUR POLICY: If you and your spouse combine your auto policies you could see your total insurance costs drop by 30%. If you and your partner aren't married, you will need to have both names on each car's registration to be able to qualify for this discount.

GET DEFENSIVE: Ask your auto insurer if taking a defensive-driving course will reduce your insurance premium. And hey, it's a great safety move even if there's no premium break.

Retiree-advocacy group AARP offers a driver safety program, regardless of your age or whether you are an AARP member. It costs just $10 for an eight-hour course. You can learn more at www.aarp.org/drive.

PUT YOUR DEGREE TO WORK: Many insurers offer discounts for advanced degrees and for specific professions. Make sure you check with your insurer if your education or job can drive a better deal on your insurance.

ANTITHEFT DEVICES: If you have an alarm system or a vehicle tracking system, you can get a discount as high as 45%

GROUP BENEFITS: Being a member of certain professional groups -- say a teachers association -- could also qualify you for a discount. And while you are at it, check in with any group you are affiliated with, such as your college. Quite often, it sponsors a plan that can get you a lower rate.

SLOW DOWN: A clean driving record can qualify you for a "good driver" discount of 20% or so. This means you can't have more than one minor blemish on your driving record, such as a speeding ticket or noninjury accident, in 3 years.

Believe it or not, a version of your credit score plays a role in setting your auto insurance premium in many states. Yep, it turns out that if you are a good credit risk, insurance companies figure you're a better insurance risk, too.

MAKE THE GRADE: Good grades translate into lower premiums.

If your child is a full-time student in high school or college and maintains at least a 3.0 grade-point average, the cost of adding him or her to your policy could be cut as much as 25%. The requirements and discounts vary by state and by insurance company, so contact your insurance agent to learn more about what discount is available.