Let's start with the easy stuff. Look for add on items like towing and rental car coverage. These are completely optional in all states and are a great way to save some money. Granted, the amounts these items contribute to your overall policy amount aren't huge, but a few bucks here and there can add up.

Next, look for you comprehensive and collision coverage. These items are generally optional too, unless you still have a lien on your car either because you are still paying for it or the car is leased. If your car is paid for, you can either drop these items completely from your coverage or you can raise your deductible. Raising the deductible can save you as much as 40% on the amount you pay for your overall policy. Keep in mind that dropping these coverage items means that you will be responsible for fixing your car should you hit someone and it is your fault. Also, you will have no coverage in the event your car is stolen or damaged by a hailstorm for example. If you can live with the risk, drop the coverage; otherwise just raise your deductible.

Finally, look at your coverage limits for liability. Liability coverage is mandatory pretty much everywhere. Lowering the amount of liability coverage can save you a substantial amount on your bill. The downside is that if you should be sued by another driver or if you have to pay their medical bills, once your coverage limit is exceeded, you will be responsible for the additional amount. The wisest course is probably to not skimp on liability coverage. Even though it can save you some money in the short term, it exposes you to a lot of financial risk should you be involved in a major accident.