To get car insurance for the first time, drivers need to decide what coverage they need, gather their personal and vehicle information, and shop around for the best policy at the lowest price. A first-time driver should expect to pay up to 300% more for coverage than someone with more experience. But with research and a little bit of searching, first-time drivers can still find a policy that fits their budget.
How To Get Car Insurance for the First Time: 5 Tips
1. Determine what type of coverage you want to purchase.
Almost every state requires drivers to carry liability insurance, which covers property damage and injuries to other drivers in accidents that you cause. Some states also require other types of coverage, like uninsured motorist and personal injury protection. Plus, you should consider purchasing extra coverage to protect yourself in more situations.
2. Gather your personal and vehicle information.
To get car insurance quotes and ultimately purchase a policy, you will need to provide personal information such as your driver’s license number, date of birth, address, occupation, driving history and insurance history. You will also need to have your vehicle registration number and vehicle identification number (VIN).
3. Get at least three quotes from different insurance companies.
Every insurance company has its own way of calculating premiums, so getting multiple quotes increases your chances of finding the best deal possible.
4. Pick a company
While price will be an important factor when choosing an insurance company, you’ll also want to consider the insurer’s coverage options, available discounts, ease of doing business and overall reputation.
5. Get insured
Once you choose an insurance company, it’s time to buy your policy. You’ll get a physical or digital copy of your policy, and you’ll need to look over it to make sure you understand the fine print before you sign. The policy will usually take effect once you make your first payment.
Mistakes to Avoid When Getting Car Insurance for the First Time
One of the most common mistakes that drivers make when getting car insurance for the first time is only purchasing the minimum amount of insurance coverage. Although this is a great way to save money on your premium, it can cost you a lot more later on if you get into an accident.
You should also avoid lying about your driving history when getting quotes. Insurance companies will always check your driving record before selling you a policy, which means that you could end up paying more than your original quote if you’re not honest.
Finally, make sure you know exactly what you’re signing up for. Car insurance can be complicated, but reading the fine print and understanding your policy will make your experience much smoother if you ever need to file a claim.
First-Time Car Insurance Premiums
As a first-time driver, your insurance costs are going to be high because of your lack of experience, but that doesn’t mean savings opportunities are nonexistent. Be sure to ask about every available discount that you qualify for, and check to see if your insurance company gives a discount for paying for the whole year in full.
As time goes on and you gain more experience driving, you’ll qualify for better prices, so take the time to occasionally shop around for quotes or revisit your current rate with your insurer to find out if you can get it lowered.
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