Car-insurance rates are falling as boomers slow down and cars get safer. Make sure you get more than your share of the savings.

Shopping for car insurance isn't Phil Conley's idea of fun. And he's the vice-president of a commercial-property insurance company. "Insurance is something you have to have but don't want," he says bluntly, "and I don't want to spend a lot of time on it." But he's found that spending a little time can deliver a big payoff. In the past two years he's doubled his coverage while slashing his costs by $600 a year.

Shopping for insurance probably isn't what you do for kicks, either, but there's a good chance that you, too, can save. The 20th century is winding down with back-to-back years of falling premiums, the first drops since 1973. On average, rates fell 2.8% nationwide in 1998, and they're expected to dip another 4.5% in 1999, according to the Insurance Information Institute.

Despite the rising cost of new cars, premiums are down in most states, according to Bob Hartwig, the institute's chief economist. The big winners are in California, New York, North Carolina and Texas. In North Carolina, insurers petitioned the state insurance commissioner earlier this year to roll back rates to the tune of $125 million.

Several factors are driving this refreshing trend. The graying of America means baby-boomers are moving into their safest driving years. As cars get safer, automobile injuries decline. And stiffer laws have curbed theft and drunk driving.

But rates aren't down for everyone everywhere. For example, in 1998 State Farm's auto premiums dropped an average of 6% nationwide, but they actually went up in a few states, including a 6% boost in North Dakota. And there's no guarantee that the overall downward drift will continue. State Farm--which is appealing a $1.2-billion award for using after-market parts to repair damaged vehicles--has suspended the use of the less-expensive parts. If it loses its appeal, the company says the higher cost of using original-equipment parts will ultimately be passed on to policyholders in higher premiums.

But for now, get in while the getting is good. "Competition is so keen that companies are eagerly writing up people they previously were reluctant to insure," says Robert Hunter, former Texas insurance commissioner and director of insurance for the Consumer Federation of America.

It's also easier than ever to comparison shop. Thanks to Internet sites, you can get quotes from several companies in a matter of hours.

Companies that sell through agents--including All-state (www.allstate.com/products/auto), State Farm (www.statefarm.com) and Nationwide (www.nationwide.com)--will direct you to local agents for quotes. Direct sellers--such as Geico (www.geico.com; 800-861-8380) and USAA (www.usaa.com; 800-365-8722)--will bid for your business over the phone.

Progressive Insurance (www.progressive.com) goes a step further. It will prepare a price for its insurance plus prices for up to three of its competitors as soon as you fill out an online questionnaire or call its toll-free number (877-776-4266).

For more help scouring for the best deal, InsureMarket (www.insuremarket.com) and InsWeb (www.insweb.com) will scout as many as 20 different companies and list the best prices they can find. Don't let inertia prevent you from using the tools at your disposal. "People who aren't attentive to their shopping will pay significantly higher rates than they need to," says Darrell Ticehurst, vice-chairman of InsWeb Corp., in Redwood City, Cal.

KNOW THY COVERAGE

Automobile insurance isn't a single product but rather a group of coverages packaged together. You can fine-tune any part of the package to suit your needs. Liability pays for injuries you cause to others and their property. It is typically sold with three limits. A $100,000/ $300,000/$50,000 policy, for example, would pay up to $100,000 for injuries to a single person, up to a total of $300,000 for injuries in a single accident, and up to $50,000 for property damage. This is the minimum you should consider--and you can boost your protection relatively inexpensively. "We recommend $250,000/$500,000 in bodily-injury coverage because medical bills plus pain and suffering and all the extras can easily exceed $100,000/$300,000 in a serious accident," says Ronald Whitaker, an independent agent in New Lenox, Ill. "And the extra protection costs only 20% more."

Some states demand that residents carry uninsured/ underinsured motorist insurance. It pays for medical treatment, lost wages, and pain and suffering if you're injured in an accident caused by an uninsured driver. Even if your state doesn't mandate it, the growing number of uninsured drivers makes it advisable to buy this coverage. Typically it will add about $120 a year to your bill.

Medical-payment insurance or personal-injury protection (PIP) covers medical expenses and the lost wages of people who are injured in your car. In many cases, this coverage--which runs about $50 a year for $5,000 of insurance--is superfluous because most people have their own insurance and because costs would be covered by the liability coverage of the driver at fault. In states with nofault insurance laws, PIP coverage pays for you and your passengers, regardless of who is at fault.

Collision coverage picks up the cost of repairs to your car if it's damaged in an accident; comprehensive pays if the car is stolen or damaged by fire or natural causes. You can lower your premium for both by raising the deductible--the amount you agree to pay before the insurance kicks in. "A $50 deductible was what you would see in the '60s when cars cost $2,000," says Gary Grant, vice-president and actuary for State Farm. "Today, with cars costing $23,000, people should be carrying a $1,000 deductible to take advantage of a lower rate." Going from a $50 deductible to $1,000 can cut premiums for comprehensive and collision coverage by about 50%, he says.

GO FOR THE SAVINGS JUGULAR

Despite his aversion to thinking about car insurance, Phil Conley has plenty of motivation to do so. He and his wife, Jacqueline, have two cars: a 1996 Volvo turbo and a 1996 Nissan pickup. And they live in the Pacific Heights section of San Francisco, which, he says, is notoriously expensive for car insurance. By shopping around he was able to cut the couple's annual bill in stages from $2,100 to $1,500--even as he increased coverage to $250,000/$500,000/$100,000 on each car. "My Volvo is turbocharged, so several companies were asking for surcharges on the car," he says. "But by shopping, I found a company that didn't."

Conley did his successful sleuthing on InsWeb. His most recent victory: "I went in and filled out the required information and was quoted a price $400 less than the policy I had purchased six months earlier." No wonder he's committed to surfing for cheaper rates regularly.

"The reality is consumers need to shop because there's lots of money lying on the table out there," says Leslie Kolleda, a spokeswoman for Progressive Insurance. If you haven't checked within the past six months, you owe it to your budget to make a few phone calls or log on to the Internet to see what the competition is offering.

Start with three to five sources, including a firm that sells through its own agents, a direct seller and an independent agent who sells policies from several companies. Ask friends for references, or check the Yellow Pages under "Insurance."

For help finding the best deals, check with your state insurance department. Many--including those in Illinois, New York, North Carolina and Texas--do annual comparison surveys of premiums of companies selling in the state. You can check them out through the Insurance News Network at www.insure.com.

When you shop, have the vehicle identification number (VIN) handy. It's located on the dashboard of your car. You should also know whether your car has one or two air bags, anti-lock brakes and a security system or alarm. These safety features can knock 10% to 40% off your medical, collision and comprehensive premiums. How many miles you drive will also affect your rate; fewer than 7,500 miles a year qualifies you for a discount of 10% to 15%.

Price isn't everything. You want a company with a good claims-paying record. "High-quality service has a price--that's the way it works for haircuts, and insurance is no different," says Brian Sullivan, publisher of the Insurance Report, an industry newsletter. Ask other policyholders about their experiences and check to see if your state insurance department keeps complaint records. California, Colorado, Illinois, Pennsylvania, New York and Texas are among the states that publish them for companies doing business in the state.

SPOT CHECK