The classic saying, "It's too good to be true auto insurance premiums also. If the premium seems low, make certain that you are getting the coverage you require.

Look into the agents you'll be working with, advises the California Department of Insurance. Do you know and trust them? Also look into the car insurance carrier itself. Is it a well-known and established company? Does it have the financial strength to pay its claims? You can obtain financial information on an insurance carrier from your state's department of insurance.

When talking with insurance agents, don't be too shy to ask a lot of questions. In addition to learning what coverage is offered and how much it costs, also ask about how claims are processed. Too often, people don't learn about the process until they are forced to make a claim. Knowing beforehand helps you choose a car insurance company whose claim process is best for you.

Don't forget to ask friends, neighbors and family who they use for their auto insurance and whether or not they would suggest you do the same. Often, they can provide real life examples of what went wrong and what went well when they had to file a claim.

Contact a few of the larger carriers (State Farm, Allstate, Nationwide, SAFECO, etc.) and then check with a couple independent agents and phone-based carriers, such as GEICO or Amica, just to make sure you've covered your bases.