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You could be overpaying for your auto insurance and not even realize it. There are several simple mistakes that people make that end up costing them hundreds of dollars on their auto insurance policy. Taking some time to review your auto insurance policy can help you find ways to lower your car insurance premiums; putting more money in your pocket.

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Mistake One: Choosing Your State's Minimum Requirements as Your Coverage Amount Why is this bad? Because you probably won't have enough coverage to fully protect your assets. Going with your state's minimum auto insurance requirements could leave you underinsured (and ultimately responsible for any amount over the state minimum) in the event of an at-fault car accident. It is important to check with your financial advisor or attorney to determine the amount of auto insurance coverage you need.

Mistake Two: Choosing Your Policy Solely Based on Price While price is an important factor, choosing the cheapest policy could leave you grossly underinsured. The first step in shopping for auto insurance is to determine the amount of coverage you need. From there, you can then pick the policy that has the coverage you need at the best price.

Mistake Three: Not Comparing Auto Insurance Quotes Each auto insurance provider will use your information differently in determining your auto insurance rate. That means a policy with the same amount of coverage could vary by hundreds of dollars from one company to the next. To find the company that will offer you the policy you need at the best price, you need to compare multiple auto insurance quotes. After you purchase an auto insurance policy, you should still compare auto insurance quotes twice a year to make sure you are still getting the best deal.

Mistake Four: Having the Lowest Possible Deductible on Your Policy The deductible is the amount of money you have to pay out of pocket before your auto insurance kicks in. While having the lowest deductible seems like it would save you money, it actually could be costing you in the long run. Having a higher deductible can lead to overall savings on your auto insurance. While the cost of an accident will be more for you, chances are you will be better off saving on your premium than saving per incident.

Mistake Five: Not Getting All the Discounts That Apply to You When purchasing an auto insurance policy, look to see what discounts are available. Many auto insurance providers offer discounts for being a safe driver, having a safe car, or insuring your car and home with the same company. There are also many other discounts available that you should ask your auto insurance agent about.

The best way to find the most affordable auto insurance policy is to compare multiple car insurance quotes. This allows you to select the coverage you need and find the best price for that policy. At InsWeb.com, you can compare multiple car insurance quotes in a matter of minutes.

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