Auto insurance is required in 47 of the 50 United States. But even if you live in one of those three states that do not require car insurance, you’re risking a lifetime of financial ruin if you opt to drive unprotected. All it takes is for you to be found guilty of causing an accident with serious property damage, personal injuries, or fatalities and you could lose your home and every penny you have or will ever earn. It’s simply not worth the risk.

Just because you have to buy auto insurance there is no need to pay too much to get it. Here are some money-saving tips to keep in mind when you are buying auto insurance:

Compare Prices

Premiums vary greatly among different auto insurance providers. There is no such thing as a “standard rate”. Visit your State Insurance Commissioner’s web site to get a list of all auto insurance companies that are licensed to write car insurance policies in you state and then get a quote from each one.

Check the Auto Insurance Company’s Rating

It doesn’t do you any good to get car insurance from a company that might not be around to pay the claim. Visit A.M. Best (http://www.ambest.com<) to see how your auto insurance company stacks up financially.

Don't decide on price alone

Talk to friends, family and neighbors to see who they insure their cars with. Besides low rates, you want an auto insurance company that is fair and that will respond to claims quickly and professionally.

Save money with higher deductibles

A deductible is the amount that you have to pay out of your own pocket for damage before the auto insurance kicks in. The higher the deductible is, the lower your premium will be. Simply raising your deductible from $200 to $500 could result in annual premium savings of as much as 30%. Even higher deductibles will yield greater savings. A $1000 deductible could save you 40% of your premium costs.

Check for additional discounts

Many auto insurance companies offer discounts for safe drivers, auto alarm systems, Anti-Lock Brake Systems (ABS), multiple auto coverage, and having your home and auto insurance with the same company. Be sure to ask your agent for a complete list of every discount they offer and then apply for any that you qualify for.

A few hours spent doing your homework can save you hundreds to thousands of dollars per year. It’s worth the effort.