Mistake One: Choosing Your State's Minimum Requirements as Your Coverage Amount

Why is this bad? Even though you will be in compliance with your state laws, you could be leaving yourself underinsured. It is important to talk to your financial advisor or attorney to determine the amount of car insurance coverage you need.

Mistake Two: Don't Choose Car Insurance Based on Price

Obviously price is an important factor when purchasing your car insurance policy, but it shouldn't be the only factor you consider. When comparing car insurance quotes, choose the coverage you need then start to compare prices.

Mistake Three: Not Comparing Car Insurance Quotes

Do you just renew your car insurance year after year? You could be spending hundreds of dollars more than you have to. Car insurance companies will determine your risk to insure differently, meaning different rates from different companies. The only way to make sure you aren't overpaying is to compare car insurance quotes.

Mistake Four: Having the Lowest Car Insurance Deductible

The deductible is the amount of money you have to pay out of pocket before your car 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 car 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 a car insurance policy, look to see what discounts are available. Many car 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 car insurance agent about.

Don't overpay for your car insurance. To find the policy you need at the most affordable price, compare car insurance quotes at InsWeb.com.