Finding the lowest car insurance quote is something that most people do not take the time to do. I have a hard time understanding this, because many of these people are the same ones who will drive all the way across town to save a penny a gallon for gas or will buy 15 cases of mustard because they save 50 cents. But while they are saving nickels and dimes, the dollars are racing out the door because they are not paying attention to their car insurance.

I have no beef with bargain hunters and commend them for their perseverance. But at the same time, it only makes good common sense that if you are going to get the best prices on things, be sure to include a big ticket item such as your auto insurance. Sure it takes more effort to understand what you are comparing, but at the end of the day it makes a huge amount of financial sense.

If you are like most people, you simply renew your auto insurance every year without getting a new quote, even from the same company. It’s the easiest way to do it, but remember that easy is not the same as cost effective. Car insurance rates are changing all the time, and if you don’t spend the time to comparison shop, chances are better than excellent that you are paying more than you need to.

I am not saying that your current car insurance company is ripping you off. The truth of the matter is that they might be offering you the best deal available for your particular driving habits and situation. But the keyword here is “might”, and if you don’t do any comparison shopping, you’ll never know that, will you?

One classic example is one of the most costly coverages you can have on your car, which is collision insurance. When your car was new, your finance company required you to carry collision insurance. But if your car is paid off, did you know that you can legally DROP the collision coverage? Or if your collision deductible is $100, you are paying about three to four times more for it compared to having a collision deductible set at $1000.

What are your coverage limits? As an example, looking at the personal liability coverage that almost all states require you to have, if the policy limit is set at $25,000 that is barely going to cover anything in today’s lawsuit-happy world and you are really not protecting yourself with that level of coverage limit. A more reasonable limit that would truly protect you would be something like $250,000. Yes it will cost more, but there is no sense in paying for something that is going to provide inadequate protection if you need to file a claim.

Get car insurance quotes from various companies to compare rates and programs, and make sure you are comparing apples to apples in terms of deductibles and coverage limits. You are also encouraged to get an online car insurance quote to see what can be offered there. Frequently these companies can offer extremely aggressive rates, and you might be pleasantly surprised to find out how much you can save. There is no cost to get an online quote, but you cannot really compare quotes if you don’t get one.

Do your comparison shopping, just as you would for any other major purchase, to make sure you are getting the most value for the money you are spending. Don’t merely renew your existing policy every year just because it is easy.