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Coasting in gear uses no gas, but it also slows you down faster than coasting in neutral. So, if you have to stop fairly quickly, then coasting in gear is the obvious choice. Or, if you're going downhill, and the car can keep its' speed while still in gear. But, if you plan the stop, and have a long way to go until the stop sign, then coasting in neutral will be better overall, since you'll be able to let off the gas earlier than you would if you kept it in gear.
What you don't want to do is coast in gear, and then find out that you're going too slow to make it to the stop, because then you'll have to accelerate again, which will pretty much defeat the point of coasting to the stop.
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