Auto-Owners is owned by Auto-Owners policyholders, since it is a mutual insurance company and its shares are not available to investors on the public market. Among the 10 largest car insurance companies in the U.S., four are mutual insurance companies.
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.… read full answer
How To Get Car Insurance for the First Time: 5 Tips
1. Determine what type of coverage you want to purchase.
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.
Common Auto-Owners Full Coverage Insurance Components
Liability insurance. Almost every state requires drivers to carry liability insurance, which includes property damage liability and bodily injury liability coverage. Liability insurance pays for others’ expenses after an accident you are at fault for.
Collision and comprehensive insurance. Collision insurance covers the cost of fixing or replacing the policyholder’s vehicle after an accident, regardless of who was at fault. Similarly, comprehensive insurance covers the policyholder’s car if it’s damaged by something besides an accident, like vandalism, a fire, or a natural disaster. Collision and comprehensive are not mandatory in any state, but they are usually required for leased and financed cars.
Uninsured/underinsured motorist coverage. This type of coverage protects you if you are involved in an accident with a driver who either does not have car insurance or does not have enough coverage. Uninsured/underinsured motorist insurance covers your expenses after an accident that should have been paid for by the at-fault driver’s liability insurance. It will automatically be included in your full coverage policy if it is required in your state.
Personal injury protection/MedPay. Personal injury protection (PIP) insurance and MedPay coverage both cover medical expenses for you and your passengers after an accident, regardless of fault. Depending on your state, you may be required to carry one or the other.
Although these types of insurance are commonly included in a full coverage policy, what your specific policy includes will depend on your state. Full coverage is not the official name of any type of insurance, so be sure to clarify whether these types of insurance are included if you’re purchasing an Auto-Owners policy.
When You Should Consider Full Coverage From Auto-Owners
An Auto-Owners full coverage policy is a good choice for drivers who don’t want to pay for vehicle repairs out of pocket. If you are leasing or financing your car, you may be required to get full coverage.
Auto-Owners insurance rates go up by an average of 34% after an accident. Even though an accident will cause Auto-Owners to raise your car insurance premium when you renew your policy, the added cost will only be temporary. An accident will usually affect your Auto-Owners premium for just 3-5 years.
The exact amount that Auto-Owners premiums go up after an accident depends on a few factors, including who was at fault, how much damage was caused, the policyholder’s driving and claims history. In general, at-fault accidents or severe accidents that lead to expensive insurance claims increase rates more than minor or not-at-fault wrecks. Additionally, premiums increase more for drivers who have had previous accidents or moving violations.
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