When shopping for auto insurance, it is important to look at the price tag, but also the coverage and the carrier. As is the case with any service, getting a great bargain is quickly forgotten when you realize what you are paying for is not what you expected.

The classic adage, "if it sounds too good to be true insurance premiums as well. If the premium seems too low, be certain that you are getting the coverage you need.

Research the Insurance Provider

Look into the agents who will be managing your account, advises the California Department of Insurance. Do you know and trust them? Also look into the auto insurance provider itself. Is it a well-known and established company? Does it have the financial strength to pay its claims? You can obtain financial information on an insurance carrier from your state's department of insurance.

Ask a lot of Questions

When talking with an auto insurance agent, don't be too shy to ask a lot of questions. Along with learning what coverage is provided and how much it costs, make sure to ask about how claims are processed. Frequently, insurance customers don't learn about the claims process until they are forced to make a claim. Knowing ahead of time helps you choose a car insurance company whose claim process is best for you.

Find Out What Others Think

Ask friends, neighbors and family who they are insured with and whether or not they would suggest you do the same. Often, they can provide personal examples of what was lacking and what they liked when they had to file a claim.

Make Sure to Shop Around

Call a few of the largest auto insurance providers (State Farm, Allstate, Nationwide, SAFECO, etc.) and then check with a couple independent agents and phone-based carriers, such as GEICO or Amica, just to make sure you've covered your bases.