Auto Insurance

1. You can save several hundred dollars a year by purchasing auto insurance
   from a licensed, low-price insurer. Call your state insurance department for
   a publication showing typical prices charged by different companies. Then
   call at least four of the lowest-priced, licensed insurers to learn what they
   would charge you for the same coverage.
   
   
2. Talk to your agent or insurer about raising the deductibles on your collision
   and comprehensive coverage to at least $500 or, if you have an old car,
   discuss dropping this coverage altogether.
   
   
3. Make certain that your new policy is in effect before dropping your old one.

Homeowner/Renter Insurance

1. You can save several hundred dollars a year on homeowner insurance
   and up to $50 a year on renter insurance by purchasing insurance from a
   low-price, licensed insurer. Ask your state insurance department for a
   publication showing typicalprices charged by different licensed
   companies. Then call at least four of the lowest priced insurers to learn
   what they would charge you. If such a publication is not available, it is
   even more important to call at least four insurers for price quote.
   
   
2. Make certain you purchase enough coverage to replace the house and its
   contents. "Replacement" of the house means rebuilding to its current
   condition.
   
   
3. Make certain your new policy is in effect before dropping your old one.

Life Insurance

1. If you want insurance protection only, and not a savings and investment
   product, buy a term life insurance policy.
   
   
2. If you want to buy a whole life, universal life, or other cash value policy, plan
   to hold it for at least 15 years. Canceling these policies after only a few years
   can more than double your life insurance costs.
   
   
3. Check your public library for information about the financial soundness of
   insurance companies and the prices they charge. The July 1998 issue of
   Consumer Reports is a valuable source of information about a number of
   insurers.

Checking

1. You can save more than $100 a year in fees by selecting a checking account
   with a low (or no) minimum balance requirement. Request a list of these
   and other fees that are charged on these accounts.
   
   
2. Banking institutions often will drop or lower checking fees if your employer
   directly deposits your paychecks.

Savings and Investment Products

1. Before opening a savings or investment account with a bank or other
   financial institution, find out whether the federal government insures the
   account (FDIC or NCUA). An increasing number of products offered by
   financial institutions are not insured. These include mutual stock funds and
   annuities.
   
   
2. To earn the highest return on savings (annual percentage yield) with little or
   no risk, consider certificates of deposit (CDs) and treasury bills or notes.
   
   
3. Once you select a type of savings or investment product, compare rates and
   fees offered by different institutions. These rates can vary greatly and, over
   time, can significantly affect interest earnings.

Credit Cards

1. You can save as much as a thousand dollars or more each year in lower
   credit card interest charges by paying off your entire bill each month.
   
   
2. If you are unable to pay off a large balance, pay as much as you can and
   switch to a credit card with a low annual percentage rate (APR).
   
   
3. You can reduce credit card fees, which may add up to more than $100 a
   year, by getting rid of all but one or two cards, and by avoiding late
   payment and over-the-limit fees.

Auto Loans

If you have significant savings earning a low interest rate, consider making
a large down payment or even paying for the car in cash. This could save
you as much as several thousand dollars in finance charges.


You can save as much as hundreds of dollars in finance charges by shopping
for the cheapest loan. Contact several banks, your credit union, and the
auto manufacturer's own finance company.