The average household now spends $50 per month more on gasoline than last year, says financial planner Rick Rodgers, author of “The New Three-Legged Stool: A Tax Efficient Approach To Retirement Planning” (www.TheNewThreeLeggedStool.com).

Ease the pain by looking for other places to offset that extra expense. Car insurance is a good place to start.

According to the Insurance Information Institute, the national average auto insurance premium is $850 per year. Rodgers says you can reduce that:
• Shop around regularly. Your insurance agent doesn’t have a lot of incentive to reduce your premiums, so shop around yourself on the internet or get an independent insurance agent to shop for you. Contact the Independent Agents Association at (800) 221-7917. (Be sure the company you go with has a good credit rating and claims-paying history.)
• Bundle your coverage. Combining different types of policies (auto, homeowners, liability, etc.) with the same company can be rewarded with discounts on premiums. Bundled packages usually result in a 10 to 15 percent savings.
• Ask for discounts. Ask whether discounts are offered for good driving records, anti-theft devices, vehicle safety features (anti-lock brakes, air bags, automatic seatbelts), low annual mileage and insuring more than one car. Discounts are also available for buying your policy online, paying in full up front, and being a loyal customer.
• Take a defensive driving class. You can learn a lot and most insurance companies recognize the value of a refresher course. Most offer a 10 percent discount on your premium for three years. AARP offers a driver safety program online for those over age 50.
• Increase your deductible. Do your auto and homeowners policies have low deductibles? If so, you may be able to reduce your premiums 15 to 30 percent by raising the deductible on your collision and comprehensive coverage. Make sure you have an emergency fund set aside to cover the cost of repairs before you make the change.

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