When buying an auto insurance policy for the first time, you need to start by researching the requirements for minimum coverage in your state. Nearly every state has its own regulations around insurance for drivers.
If you’re a first-time driver, you need to know how to get car insurance for the first time. According to The Balance and Yahoo! Finance, choosing the right car insurance policy is a major step in owning and driving a vehicle. It can protect you and the assets you own if you are involved in an accident.
As you compare options, you need to make sure that the policy you choose meets the minimum coverage requirements set forth by the state where you live and drive. Failure to do so could subject you to costly penalties and fines as well as traffic tickets, higher premiums in the future, and even the suspension of your license.
How to Get Car Insurance for the First Time
When you’re driving a vehicle for the first time, you don’t have current car insurance. Unfortunately, this puts you in a higher risk category to an auto insurance company because uninsured drivers are considered high-risk.
As a result, you’ll have to pay a higher premium than a preferred or standard driver with proven experience. One way around this higher cost is to be added as a new driver on an existing insurance policy. By going this route, you can get an instant discount on your premium.
Guide to Buying Car Insurance
When buying an auto insurance policy for the first time, you need to start by researching the requirements for minimum coverage in your state. Nearly every state has its own regulations around insurance for drivers. In all states but New Hampshire, you must have liability coverage on your auto insurance policy.
In 20 of the 50 states, you must carry uninsured motorist coverage, while 17 states require drivers to carry underinsured motorist coverage. The minimum coverage amounts also vary between the states.
After you figure out which coverage is required by your state and how much you need, you can start researching car insurance companies. Ask your friends and family members who they use for car insurance and perform an online search to see what companies come up in your area.
Create a list of a few to compare and review their complaint statistics and reviews. Complaints are available through the National Association of Insurance Commissioners’ Consumer Information Source, while reviews are available through many online sources.
Use this information to see how customers feel about each company as well as to see whether they are trending upward or downward.You should always get several quotes to compare rates and options. Make sure the quotes you obtain are for the same coverage levels so you’re comparing apples to apples.
If you don’t want to reach out to each company for a quote, you can use a side-by-side comparison tool to view rates from multiple carriers. These tools are available through Compare.com and Insurance.com.Now that you have an idea of what you might pay for auto insurance, the next step is contacting an insurance agent.
You will need to work with an agent to purchase your policy, and they can also help make sure that the plan you’re looking into has all the coverage options you need.
Follow these steps when working with an agent:
Choose the right plan for your needs.
Review the contract, summary of insurance, and any other documentation before you sign.
Place the insurance card in your vehicle’s glove compartment.
Types of Car Insurance Coverage
When choosing an auto insurance plan, it’s important to understand the different coverage options and what they cover. The first is liability coverage, which includes coverage for bodily injury liability and personal property damage liability. It only pays for damages and injuries sustained by other parties when you are deemed to be at fault in an accident.
As mentioned, all states but New Hampshire require this coverage on an auto insurance policy.Another type of coverage is collision, which is what will pay for repairs to your vehicle.
If you are involved in a crash with another vehicle or you hit an object, such as a wall or post. Comprehensive coverage pays for damages that are not related to a car accident, such as weather damage, vandalism, collisions with animals, or theft.
Uninsured/underinsured motorist coverage is required in some states and pays for damages to your vehicle if you are involved in a crash with an uninsured or underinsured driver who cannot pay for the damages.
Decide How Much Insurance You Need
When comparing insurance policies, you also need to decide how much insurance you want. At the very minimum, you must obtain the level of coverage required by your state. If you have money in savings or you own a home, consider adding more liability insurance coverage to protect these assets from being seized if you are found at fault and the damages exceed your policy’s max payout.
On the other hand, if you drive an older car, you may want to remove comprehensive coverage from the plan since it may not be worth the cost based on the value of your vehicle.
The Insurance Information Institute (III), Insurance.com, The Zebra, and NerdWallet all recommend a policy that includes $100,000 in bodily injury liability coverage and $300,000 per accident. This is referred to as 100/300 coverage.
