• Before you get auto insurance, have a check run on your credit so you won’t get blindsided. There are three companies that provide this service for free: Equifax Credit Information Services; Experian and TransUnion Corp. If you discover any red flags, do what you can to clear them up before you look for insurance.

• Shop around; don’t just go with the first quote you receive without doing some comparing. Treat it as you would actually buying a car; you wouldn’t buy the first car you see at the asking price without at least considering other options, would you? Calling an insurer to request a quote is not a commitment to purchase insurance.

• Even for those on a tight budget, the least expensive doesn’t necessarily mean the best. Make sure you buy adequate amounts of coverage. Without enough coverage, you could face financial disaster in the event of an accident. You must carry liability insurance (bodily injury and property damage), which covers you in an accident that is your fault. The Insurance Information Institute (III) recommends you carry $100,000 of bodily injury protection per person and $300,000 per accident. For property damage liability, other experts recommend a minimum of $50,000 in coverage. Collision insurance (which pays to repair your vehicle after an accident) and comprehensive (for damage done to your vehicle other than in an accident, such as theft and hailstorm) are not mandatory in all states. If you have an older car, you could save some money by not buying full coverage.

• Ever thought about moving? This might be the time. Location can have an effect on insurance costs. In general, insuring a particular vehicle in a less-populated area where fewer traffic accidents occur costs less than insuring the same vehicle in a congested urban area.

• If you don’t yet have the car you want to insure, find out how insurance costs compare depending on the make and model. In general, cars that cost more to repair cost more to insure. Also, do your research and find out which cars are most popular with thieves, who dismantle them for parts. You might be surprised; the National Insurance Crime Bureau compiles such a list, and many of the cars on it consistently are 10 or more years old. The most recent statistics, which just came out in August 2009, can be found here.

• Do you have a teenager who hopes to drive someday? Stress the importance of grades long before he or she is old enough to have a license. Good grades reduce auto rates. Students should also complete a driver’s education class before getting their license. And there’s no need to put a teenager on your policy until he or she actually has a license. Young, unmarried male drivers are generally considered the highest risk for insurers, so they are saddled with the highest premiums. Like that group, senior citizens 65 to 70 and over have a higher accident rate and thus cost more to insure. The amount of insurance you might want varies depending on the kind (and age) of car you have rather than the demographic of the driver. This should be obvious, but maintain a good driving record. Most insurers go back three to five years to check driving records. Accidents and/or tickets during that time frame can (but don’t always) end up raising your premiums. Getting a ticket out of state may not have an effect. All these are variables, so check with a potential insurer when you request a quote.

• Make sure to mention if you telecommute. Driving zero miles to and from work means your car will be traveling fewer miles per year, which will reduce your premium. If you car-pool with colleagues or neighbors and only drive a few days a week, this will save you money on insurance, too (not to mention gas).

• Don’t be afraid to ask what discounts insurers offer. For example, what sort of a break do good drivers get? How about families who insure more than one vehicle, or bundle home and life coverage with auto insurance? Do you get a break if you pay the annual premium all at once rather than making multiple payments? If I had an accident three years ago but have a clean driving record since, would that affect my insurance now? How about if I get a speeding ticket in another state? If my teenager gets a speeding ticket or other moving violation, does that eliminate all the discounts we got for his grades and driver’s education? You won’t find out if you don’t ask.