As the economy continues to take its toll on the majority of consumers, many people are looking for ways to cut costs wherever they can. One expense that consumers often consider reducing is their automobile insurance premiums.

Fortunately, saving money on car insurance doesn't necessarily mean that you will have to sacrifice coverage. By doing a bit of homework, you can often save money while still having the protection you need if an accident occurs.

Here are 7 ways to save money on your auto insurance:

• Consider buying your car insurance through the same company that insures your home. Insurance companies typically offer "multi-line discounts" of 15% or more if you carry more than one type of insurance through them. On an $800 annual policy, this discount alone can save you $120 or more per year.
• Take a voluntary defensive driving course. Several states in the U.S. require that insurance companies offer discounts to drivers who take an approved defensive driving or driver improvement course. The percentage of the discount varies by state and by company, but it is typically in the 5% to 10% range. Keep in mind that this discount usually will not apply if you are forced by a court to take the course because of a violation, accident, or other incident.
• Keep your driving record clean, or take steps to improve it. This may seem obvious, but maintaining a good driving record helps you in two ways. First, insurance companies assign "factors" based on your driving record - the more violations and accidents you have, the higher the factor - which means you pay more for your auto insurance premiums. Second, some companies offer discounts for each policy term in which you don't have a claim - in essence, they are rewarding you for not costing them money. Over time, this can help you cut your premiums nearly in half.
• Let your agent know if your car has an anti-theft device. Insurance companies will usually give you a 5% to 10% discount if you have an anti-theft device installed.
• Make sure that your insurance agent has the correct vehicle identification number (VIN) for your vehicle. The VIN is used to gather a variety of information about your car, and if it reveals that your automobile has anti-lock brakes, daytime running lights, side curtain airbags, or other safety features, this can earn you additional discounts.
• Consider dropping comprehensive and collision coverage if your vehicle is more than 10 years old, or is worth less than $3,000. It's great to know that your insurance company will pay to repair or replace your car, but if it has a low market value, you're not going to get much out of the deal - even if the car is totalled. Insurance companies look at the market value of your car when assessing repair costs - and if your car is worth less than the total estimated cost of the repairs, you'll only get a check for the vehicle value, minus your deductible.
• If you have health insurance, you might want to skip "medical payments coverage". Many drivers don't even realize they're buying this coverage, because it's usually sold as part of a company's standard package. Medical payments coverage does essentially the same thing as health insurance - but only if you're injured in a car accident. There's little reason to buy this coverage if your health insurance will pay for your medical treatment.

By using these strategies, you can often save quite a bit of money on car insurance each year, leaving more money in your pocket for other essentials (or maybe even a night out now and again).