If you're looking to save money, a great place to start is with your biggest expenses first. For millions of Americans that means taking a closer look at your car, and more specifically how much your paying to insure that car. Here are five simple steps for lowering your car insurance bill.

1) Pay All Your Bills On Time - Paying your bills on time makes perfect sense but it also includes paying things such as your library fines. Everyone is looking for money and often times if you have Library fines and they are not being paid, Libraries will now send them to collection and the bill collectors will now come after you. So no matter the bill, you should pay them on time to keep your credit score up.

2) Raise Your Deductible - If you raise your deductible from $200 to $500 you could see your premiums drop as much as 15% to 30%. If you raise your deductible from $200 to $1000 your premiums could drop by 40%. The key to figuring out what's the right deductible for you is how much cash do you have in your emergency fund. Because if something goes wrong you will now have to pay that before your insurance kicks in. If you raise to the $1000 and you get into a fender bender, your out of pocket will be the $1000 before the insurance kicks in. The math is hopefully that 40% reduction would give you enough cash coming in to save up that $1000. Just make sure you don't spend the money you are saving with the lower premiums.

3) Ask If You're Eligible For Any Discounts - As your insurance carrier if you qualify for any good driver or other discounts. Many of us have heard this on TV ads from insurance companies such as state farm. You can save up to 10% to 15%, you may qualify if you have a good track record of no speeding tickets, married, and if you have multiple policies with the same insurance carrier. Some insurance companies are more proactive in promoting these discounts, but others are not, so you should definitely ask to see if you are eligible.

4) Don't Text or Talk and Drive - If you have an accident due to distracted driving, good luck in renewing your policies. Insurance companies are increasingly frustrated with drivers who text and talk while driving. It now costs more to insure teenage girls than teenage boys because of the higher risks, which shows how serious of a problem texting and driving has now become.

5) Shop Around - Insurance premiums can vary significantly from carrier to carrier. A lot of people think this is a pain in the neck to do shop around. But ironically it isn't, online sites like insurance.com can help you shop insurance quotes. You can call a couple of carriers, in 15 minutes you can save up to a $1000 or more depending on the adjustments that are made.

So what's a reasonable amount to spend on car insurance? The average car insurance policy is around $1000 for a year, but it all depends on things such as where you live and the value of your car.