Ensure you have best rates

When I walk someone through the process of making cuts in their budget, whether it's because they need to beef up their retirement savings or pay down their debt, I generally find at least a handful of things that can be cut out -- take out, premium cable, unused gym membership. Then there are things that can't be cut out -- but can be cut down. Insurance falls into that category.

There's no way out of it -- having enough homeowners and auto insurance is an absolute necessity. But a recent report from the Consumer Federation of America (CFA) indicates that insurance companies are over-charging us. And with the record profits posted by companies in 2007, I'm inclined to believe it.

"We figure that the average American family has paid nearly $900 too much for property insurance and casualty insurance over the last four years," says J. Robert Hunter, director of insurance at the CFA. What can you do to make sure that doesn't happen again this year?

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