How to Get Car Insurance for the First Time

Having a set of wheels allows people to move freely. However, a few responsibilities come with vehicle ownership too, like insuring it to meet third party claims and own damages. First time auto insurance buyers shouldn’t make the mistake of going for the cheapest policy they can get as it may mean their vehicles may not be covered properly. It is important that they don’t rush into things because they are so excited to hit the roads.

Usually money is tight for people who just bought their first automobile and now looking to arrange insurance for the first time. However, they may leave themselves exposed if they don’t arrange it snugly. Buying a liability only policy would satisfy state minimum requirements but would not include their own vehicle damages. Perhaps this is alright if they have a clunker worth not much but clearly risky if they invested a lot of money for it.

They should begin with finding out how much protection they need by considering the possible losses they can suffer. There are three main coverage options. Every automobile owner needs to arrange at least Liability car insurance to comply with the laws but they should get a decent level of limits rather than going for the lowest there is because this provision pays for the damages and injuries they may cause to other people, vehicle owners and road users and it is difficult to predict how high the damages can be.

Most people buy Collision and Comprehensive coverage to protect their automobiles against damages, if they own a vehicle worth worrying about. However, people who are new to buying automobile insurance may have intentionally bought a cheap car knowing it will be expensive to insure it with their lack of history. This is a well-known and often used strategy for young, new and novice motorists.

There are two reasons for it. First of all, they are inexperienced and they may cause a few scratches and knocks in their early driving years. Secondly, they can insure the car only for Liability coverage while they are building insurance history and upgrade their automobiles later when they qualify for cheaper rates and they are more confident drivers.

Car insurance for new drivers is usually expensive because of who they are. Most people start driving in their early ages and therefore youngsters have the majority of the first time vehicle insurance policies. One of the main reasons why it would be more expensive is because of lack of history. In addition, age restricts the number of discounts as they just didn’t have time to build good insurance, accident, driving and credit history.

Premiums come down fast when drivers prove to be safe so first time vehicle insurance buyers should look for shorter term policies and keep checking for alternative quotes at each renewal to lower rates. The worst thing they can do is to keep renewing without comparing quotes.

7 Steps to follow while buying auto insurance for the first time

Buying a starter policy shouldn’t intimidate people. New Motorists can probably arrange a better and cheaper coverage than a seasoned policyholder with a little bit of care. The Internet levels the playing field for everybody since they can learn a lot about a subject very quickly. Also, being under the illusion of knowing everything about a topic leads to bigger mistakes than a novice driver can make. Follow below steps to arrange the coverage you need economically.

  1. Look into costs before buying the car: Every type of vehicle has its ratings and you can find out about average insurance rates by car model before making a decision. You can even get quotes for the automobile you consider. It may be a smart move to go for a cheap to insure vehicle in the early years until rates come down.
  2. Find out about your options: Take this opportunity to find out how purchasing vehicle insurance helps you? Knowing what it is and how it can help you will make it easier for you to include or leave out a particular coverage.
  3. Learn the factors that affect rates: Knowing what causes a premium increase or big discount will help you avoid the surcharges and make the most of the savings. The vehicle you drive, your accident and driving history, age, zip code, credit score are some of the things that will determine the amount of premium you need to pay.
  4. Find out about the possible discounts: There are so many ways of saving money on vehicle insurance even for novice motorists. Having a large cost means even a slight percentage saving can mean a few bucks. First time car insurance buyers cannot claim continuous coverage, accident free and loyalty discounts because they have no insurance history of their own. But they can still have discounts for having a driving license for a while, being listed in parents’ policies until now, any membership related deals, having a good credit, paying in advance, being married, bundling and several more.
  5. Pay attention when filling quote forms: Every question there determines if you qualify for any discounts or not. For example, living in a property with a garage, being a good student, paying the premium in full are some of the discounts new applicants can get. Also, motorists need to provide details honestly and accurately to the best of their knowledge because these details will be part of the policy contract once the first auto insurance is purchased.
  6. Don’t hesitate to ask questions: This could be done through the chat facilities on websites, in the forums or by phone to the agents. No matter how silly it sounds, definitely you aren’t the first person asked such a question. It is better to get the right information, rather than guessing.
  7. Always shop around before buying: Regardless of age, experience and background, everyone can look for the best rates in the market and enjoy the savings. Two identical first time vehicle owners can end up paying several times different insurance premiums because of the way they shop.

If you are not still seeing affordable quotes you may need to look outside standard policies. Certain types of automobile insurance policies can serve young and new drivers better than older ones. For example, pay as you go plans are known to save a lot of money for young but good motorists with no history. In the same way, they can cost you more if you are a bad driver who likes to step on gas and brake hard every so often.