You might not think that auto insurance is something that can turn out to be a frugal living endeavor, but indeed it can!

Not only do some states require you to have auto insurance but should you find yourself at the other end of a bad wreck - and not have insurance, your financial situation could tumble  fast. With this in mind read on to learn how having an auto policy in place can save you a bundle at the end of the year:

1. Double Up With Home Insurance And Save

Many insurance companies will give you a great deal on auto insurance if you also add in a policy for your home. If you use the same company for both policies, you will get a nice discount on one or both which can amount to a few hundred or even a few thousand dollars in annual savings. Inquire with your agency and see what they can do for you when you decide to double up on policies. If your current company doesn’t offer a discount, it might be time to look at a different agency for your family’s insurance needs.

2. Peace Of Mind, Equals Peace In The Wallet

When you buy insurance, what you’re buying essentially is peace of mind. In 2012 you might not be in a single accident or fender bender, yet you still have to pay for insurance. Some might argue this is a waste of money, but of course it is not, as what you’re paying for when you purchase auto insurance is a guarantee that should anything happen, your insurance agency will step in and cover the loss, whether that loss is a new bumper, hospital bills, a car rental, a brand new or replacement vehicle and so on. So having insurance is having peace of mind.

3. Save On Ticket Fines For Non-Compliance

As mentioned earlier, in some states if you don’t carry auto insurance, you could incur traffic tickets and fines. However, having insurance (even just the state minimum) can save you money in the long run, by averting these pesky penalties and fines. Stay compliant, stay legal and avoid unnecessary state or city citations. Be sure to always carry your insurance ID cards with you while on the road and, should you ever be pulled over by local law enforcement officials, know that you just avoided up to $100 or more in fines and fees by complying with the law.

Have you ever been in a situation where you didn’t have auto insurance? If so, what consequence (if any) did you incur? Tell us below in the comment area.

This is a guest post by Missy from http://www.collisioninsurancequotes.com, who regularly shares financial tips and tricks.

Image via Flickr.