Purchasing auto insurance puts us all at odds with our own normal consumer mindset. In order to “score big”—getting the most for our money—we have to be involved in an accident. So this is one of those rare instances where we actually hope to have nothing tangible to show for the money we spend…

That’s what makes it tricky. We’re really shopping for absolute protection against something we hope will never happen, and we want to pay the least amount possible to get it.

A little knowledge can help you significantly reduce the margin of error. That’s what our tutorial is all about. But before you dive in, note the following Golden Rules for auto insurance buyers:

1. Shop around before choosing an auto insurance policy. Get at least three quotes on the same type of policy with the same or similar options. Go over them line by line as you compare them, looking for discrepancies in coverage, deductible or even phrasing. An auto insurance policy’s commitment to cover you may hinge on a single word.
2. If you already have a policy, find out if they’ll give you a discount. You may be surprised how often auto insurance companies reward their customers for their loyalty. But you may have to ask.
3. Whenever possible, take out multiple insurance policies with the same carrier. If you get, say, your auto, home and life insurance policies all with the same insurance company, your rate per policy may go down as much as 20%.
4. Re-shop your policies periodically. Set an appointment in your calendar program to do this so you won't forget. Once you become complacent, your auto insurer loses any incentive to offer you a competitive deal.