Auto insurance is one of the most important components of owning a car. Unfortunately, many drivers try to skimp on their auto insurance and do not do the proper research to find the best policy for their needs. Here are four mistakes drivers often make when insuring their used cars.

• Buying based on price. Getting the cheapest auto insurance does not mean you are getting the best coverage. Before deciding on the lowest priced policy, compare policies among companies to see if you are getting similar coverage for the reduced price.

• Not shopping around. Many drivers simply take the first quote they are given because they figure prices are roughly similar regardless of the company they use. However, some prices for the same coverage can fluctuate greatly between companies so it is important to shop around.

• Paying extra fees. If you are paying your premiums in monthly installments, you are likely paying extra fees. If possible, pay your premiums yearly or twice a year to save money and avoid “administrative fees.”

• Assuming too much. Too many drivers simply assume they are covered for something (such as a loaner car) when they are not covered at all. Read your policy before signing up for it to make sure you know what you are getting and, more importantly, what you are not getting.

Now that you know these common mistakes, you can avoid them when insuring your used cars in the future.