How can you tell if you’re paying too much for car insurance? There are a few easy ways that you can save some money, but you can probably do even better with a little extra work. Saving money on your insurance premiums does not have to be a hassle; if you read and follow these four tips, you can find the policy that will be best for you and your family.

A quick and dirty way to lower your car insurance bill is to raise your deductible on collision coverage, and cutting corners on liability. This can be a decent short-term fix, but in the long run it may prove to be too risky, and not really a smart way to save.

These four areas are the primary ways that you can cut your costs when purchasing a new policy or when checking your current policy to see if you’re paying too much. With a little effort you can get the best deal without compromising your coverage:

Comparison Shopping

Taking the time to do your homework before making a purchase is always a smart move. You wouldn’t buy a big screen TV without checking to see if it was on sale somewhere else, would you? Car insurance should be no different. Checking around before making a purchase or renewing your current policy will give you a much better idea of what is available and how much it will cost.

Personal Injury Coverage

This is the area that is the easiest way to cut costs without sacrificing what you need to minimize your risks. This coverage is designed to pay for medical and/or funeral costs resulting from an accident no matter who is at fault. If you have life insurance and medical coverage already, you may find that you’re paying twice for the same service.

Car Rental Coverage

Insurance companies typically pay $15 per day for rental cars. If you were not at fault then the other insurance company would more than likely pay for all of your rental car expenses. In the event that you are at fault, your costs could easily turn out to be more than the $15 per day would cover.

Towing / Roadside Assistance

These two policy add-ons are just a few of the extras that insurance companies will try to tack on to your policy. Investing in a good auto club membership is a much better use for your money, as they offer additional benefits like travel discounts, reservation assistance and more, in addition to the roadside coverage.

In many ways, buying insurance is the beginning of a long term relationship with a company. You should make sure that you are getting the best coverage possible before you sign on with a company that you may be with for years. After having read these four simple ways that you can save money on your car insurance, you can shop for a new policy with confidence knowing that you will never pay too much or pay for coverage that you don’t need. Don’t wait, start saving today.