Because each company uses a slightly different formula for determining insurance rates, careful comparison-shopping is the best way to make sure you're getting the right coverage at the right price. You should compare insurance rates before purchasing your first policy for a new vehicle or whenever you have a change in circumstances such as getting a traffic ticket, being involved in an auto accident, or needing to add a new teen driver to your liability coverage.

Review Your Current Auto Insurance Policy

Before you begin your search for a competitive liability insurance quote, take some time to review your current auto policy. Make sure you understand if you have more than your state's legal minimum liability coverage. If you have comprehensive or collision coverage, check to see how high of an auto deductible your policy has.

For policies that offer medical payments coverage, see if there is a limit to how much the policy pays towards eligible expenses and check to make sure your benefits aren't duplicated by your health insurance policy.

Compare Insurance Rates

Although you once had to contact insurance companies separately to compare insurance rates, this is no longer necessary. With online insurance databases, you can fill out one basic form about the level of coverage you want and submit it to several different companies. You can then contact agents directly with questions or choose to buy car insurance online.

Learn About Car Insurance Discounts

In addition to using online resources to get car insurance quotes, you may want to check and see if you are eligible for discounts by bundling your auto insurance with other coverage such as homeowners insurance and renters insurance. Some professional associations also offer discounted car insurance policies as a membership perk, so take the time to read your membership guide to see what benefits are available to you.