Here in New Jersey insurance can get rather expensive, especially car insurance! That is why that is one of the line items I look at carefully for any client to see if they can reduce expenses in this area, so as to better live within thier means. Find a good independent insurance agent in your area and talk to him or her about some of these ways to save money.
If you are a homeowner, then there is good news. Tying together a homeowner and auto policy can often lead to big savings, so look to get both with the same carrier. It can also result in better coverage for much the same price, so discuss those options with the agent.
Don't skimp on the auto coverage, though, especially for underinsured/uninsured motorist coverage. There is often not much of a cost difference between a $100,000/$300,000 policy and a $1 million one. This can be critical if you sustain significant injuries as a result of an accident with another driver who is either uninsured or carries minimal liability coverage.
Auto policies in New Jersey also have a "tort threshold" or "verbal threshold" that can prevent you from bringing a suit against the other driver if your injuries do not meet certain criteria. Having this threshold on your policy can save you money.
However, if you cannot work because of those injuries for at least 90 days, you can still sue. Therefore, should you decide to get the threshold provision, you should make sure you have either sufficient disability insurance to cover you at your current income level for at least 90 days, or that your Personal Injury Protection (PIP) coverage has a wage loss provision that would do the same thing.
Many people also load up on whole life insurance coverage, so as to have income replacement in the event of death. However, whole life coverage is much more expensive than term, and the need for income replacement goes down the closer you get to retirement.
Having the right mix of whole and term life insurance coverage can save you money and make it easier to invest for retirement. Consult with a Certified Financial Planner on the best way to do this.
Although not all of these ideas may work for you, implementing even some of them can save you significant money over time. It is definitely worth the effort to look into them!