Car insurance is legally required in all states, but this is one expense that can put a serious strain on your household budget. However, there are many ways to save money on car insurance. Most companies offer a variety of car insurance discounts, including discounts for taking defensive driving courses.

In the past, people often avoided defensive driving courses because the classroom meeting times were difficult to accommodate with a busy work schedule. While there are still traffic school classes that require you to physically meet with the instructor, an increasing number of online defensive driving classes are available. You review written materials, watch online videos, and complete an online quiz to evaluate what you've learned. If you have questions, you can contact the instructor through a forum, chat, instant messaging, or e-mail.

If you're interested in taking a defensive driving or online traffic school course solely for the purpose of reducing your car insurance rate, you'll need to ask your insurance company the following questions:

• Can I pick the course myself or does the company have specific courses that I must complete?
• What is the cost of tuition for the course?
• How long will it take to complete the course?
• How will the company know that I have completed the course?
• How much of a discount will I get for completing the course?

When looking for a defensive driving class that can reduce your auto insurance premiums, you may want to keep in mind that some states will deduct points earned as the result of a traffic ticket or speeding ticket from your driving record if you successfully complete a defensive driving course. If you can find a course that satisfies the requirements of both your state DMV and your insurance company, this is definitely a wise use of your time and money.