These days, it seems that people need insurance for practically everything. Indeed, you can find policies for life insurance, auto insurance, health insurance, home insurance, liability insurance, pet insurance, and travel insurance, to name just a few. Of course, some types of insurance are more common than others, and auto insurance certainly falls into that category.

It can be confusing to sign up for car insurance, and even if you ask family and friends for advice, the comments may be wildly different. That’s because “best auto insurance??? means different things to different people. With that in mind, here are some tips for choosing the best to fit your situation.

Know Your Priorities

One way of thinking about auto insurance is that there are three general camps of people. One group wants to pay as little as possible. Another group wants exhaustive protection and peace of mind even if that means shelling out a relatively large amount of money per month. The third group wants a middle ground in between these extremes.

None of these groups is right or wrong, but knowing where your priorities are helps you choose the right insurance for your situation. If you value peace of mind above all and are financially comfortable, you might prefer to get insurance maximums or something close to it.

Match Coverage to the Car

Some people drive older cars with costly insurance policies because the policies have not been updated since the car was purchased. For example, as your car ages, you are generally fine financially to lower comprehensive or collision coverage.

Compare Rates

To help match your coverage to your car, you would ideally compare insurance rates every year. In practice, people often get busy and forget to compare that often. Try to do it every two or three years if you cannot every year.

Another excellent reason to compare rates is because different insurers weigh risk differently. Take someone who wants Baltimore auto insurance. One agency may place more emphasis on the driver’s ZIP code, driving record, and miles driven annually, while another company’s statistics could focus more on credit history, previous insurance coverage, age, and gender. Yet a third agency is likely to have different areas of focus.

Speaking of the priorities that were touched on earlier, some people prioritize having in-person contact versus an insurer that is online-only. If seeing an insurance agent in person or being able to call your agent and get questions answered right away is important to you, then your time might be better spent comparing rates from only these types of insurers. If financial savings is what matters most, then you probably wouldn’t want to limit yourself to one type of insurer.

Ask about Discounts

Different insurers also give different types of discounts. For example, if you bundle your home and auto policies, you could possibly save more going through one company than with another. Common discounts include good student, safe driver, advance renewal, and low mileage. If you can find an insurer that offers many discounts you qualify for, the savings could be substantial.

There can be a lot to consider when it comes to car insurance, but it’s worth it to have the best coverage for your situation. Take some time every two or three years to make any necessary changes.