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When trying to put the brakes on spending, many families are taking a closer look at their car insurance, which broker John Merlino of Merlino Insurance Agency says is the the perfect first step toward savings.

"I think the most important things to do is review your existing coverage, to make sure they make sense and they are actually the coverages that you need," says Merlino.

He says not listing safety features or overestimating the length of one's commute could be costly mistakes. In addition, Merlino says many companies offer a 10 to 15 percent discount for customers who buy both their auto and homeowners' insurance.

"Between two cars and a house, 10 to 15 percent could be $400 or or $500, so that's a lot of money when you think about it," says Merlino.

Another way to save is to take a defensive driving course, which costs about $50 but could lead to hundreds in savings.

"People save a lot of money. They save 10 percent on liability, collision and personal injury protection for three years," says defense driving instructor Neil Rappaport.

But the bigger savings could come in terms of points reduction. Just one point can drive the cost of insurance way up.

"For most insurance companies, your insurance goes up 15 percent. The next three or four points on your license, an additional 25 percent. Now that's a 40 percent increase," says defense driving instructor Roger Dacey.

Perhaps the most common way to cut down on cost is to cut down on coverage. Older cars may be worth less than the amount some people pay for insurance against theft or collision.

While saving money is always tempting, do not cut so deeply that it could lead to bigger problems down the road.

"The whole purpose of insurance is to make sure that you're covered in case something bad happens. You want to make sure that your assets are not in danger," says attorney Adam Orlow of Orlow, Orlow and Orlow.

If underinsured people are deemed at fault in a serious accident, everything, including their homes, could be at risk, says Orlow. He urges drivers to not skimp on insurance, and to get supplemental coverage that will protect them beyond what the other party's insurance will pay, which is likely capped at $25,000.

Luckily, Merlino says money can be saved without reducing one's coverage. He says doubling the deductible from $500 to $1,000 could shave a few hundred dollars off the premium.

"You're really not putting yourself at that much of a risk, especially if you're a good driver. So I'm a firm believer in increasing your deductibles," says Merlino.