Save on your auto insurance by skipping options you don't need

When applying for new auto insurance, or considering a renewal of your current policy, be sure to look into those extras that might be costing you more than they are worth. For example, rental car and towing coverage may give you a secure feeling, they aren't actually used often and aren't a great value. Over the term of a policy, you pay around $20-$40 a year for emergency towing coverage. When you do need it, towing is usually in the range of $50-150. So, it may save you a bit to self-insure in this case. Just put $150 in your saving account, and it can earn interest until you need it. Similarly, a subcompact car costs $25-$35 a day to rent, but rental coverage adds on another $30-$50 to your insurance bill each year. Consider whether you really want to spend that $30-50 yearly, or just put it aside in a savings account if the need arises.