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Auto insurance is definitely an investment, and is probably one of the most expensive things many car owners will purchase for their vehicle. While car insurance can be pricey, it’s an absolutely necessary purchase. Fortunately, there are steps consumers can take to compare car insurance policies and find the plan that fits into their budget.

How much liability coverage do you need?

The first thing a shopper should do when browsing through car insurance comparisons is determine what kind and how much insurance is needed to properly cover their automobile. Liability coverage – which covers any damages done to other people and their cars in the event of an accident – is usually a minimum requirement.

Value of your car should be a factor when making car insurance comparisons

However, consumers with a newer, more expensive vehicle should consider purchasing more insurance, as liability coverage does not cover the policyholder’s own car or medical expenses. Instead, automobile owners who want to protect their car should buy a comprehensive insurance package, which will cover most mishaps that can wreck their vehicle for only a slightly higher premium.

Check the car insurance company’s reputation before deciding

After deciding what car insurance package best suits their lifestyle, shoppers are ready to begin comparing car insurers. Consumers should visit their state’s department of insurance website to learn more about companies in their region. Furthermore, those websites usually publish consumer complaint ratios for all of the insurance companies that sell policies in their state, which represents how many complaints the company has received per every 1,000 claims filed, allowing shoppers to see how well companies actually serve their customers.

“Just because they’re a big name doesn’t mean that they’ll be a ‘good neighbor’ or that you’ll be ‘in their hands'” according to Doug Heller, a consumer advocate at the Foundation for Taxpayer and Consumer Rights.

Talk to your trusted body shop for their opinion on the best car insurance company

Checking with body shop owners to see which companies they have the best time interacting with is a good idea. Since body shop managers regularly communicate with auto insurers they will know which have the smoothest claim processes and which companies push for aftermarket parts – instead of genuine parts from the car model’s manufacturer – in order to save money.