You’ve just learned how to drive and are still getting the hang of it. With your driving license, you’re ready to take on the dangerous territory of asphalt and walk toe to toe (more like bumper to bumper) with other cars. But before you get behind the wheel, you need to have auto insurance. And that is the tricky part. Getting car insurance for first-time drivers can be confusing and costly if you do not have the proper knowledge. This is why here’s a detailed guide on how to get car insurance for a first-time driver.
Things to Consider
Before we start with the tips, here are some things that you need to consider. These things will be very relevant to auto insurance, no matter when or who buys it. All these factors affect your car insurance and if you are getting it for the first time, you’ll be paying a little less than other people. You can choose great auto insurance companies with affordable rates to minimize this extra cost.
Age
Considering that you are getting car insurance for the first time, you are more likely to be under 25. This young age will result in an increased cost for insurance as young people are more likely to be involved in an accident or traffic violations.
Credit Score
In some states (except California and others), your credit score can either increase or decrease the insurance premium rates. People with good credit scores pay less in premiums and vice versa.
Driving Record
A clean and safe driving record will get you lower rates of car insurance. Since you are just fresh into the world of driving, there’s not much data about your driving record, and this might increase the insurance rates.
Car Make and Age
More expensive cars attract more expensive auto insurance. But if you are using a hand-me-down car and it is older than ten years of age, then skipping some insurance coverage would save you some bucks.
Location and Average Driving
The area where you live or park the car and how much you drive will impact the rates of your auto insurance. If your area has higher rates of crime, accidents, theft, etc, then be prepared to pay more for the car insurance. High crime rates mean a higher risk of vehicle damage and theft.
Different states have different insurance rates as well, so you need to be very specific when you look for affordable auto insurance. For example, if you live in Texas, you need to look for the cheapest Texas car insurance company. Find the best insurance company in your state and save money on insurance policies.
On the other hand, if you’ll be driving your car for short distances and basic commuting, then the rates of auto insurance might come down. We’ll discuss how in the latter part of the article.
What Coverage to Get?
There are three main auto insurance coverages that you can get, out of which one you must get, and two you should get. Here’s what all the different types of auto insurance cover.
Liability Insurance:
Liability insurance coverage is mandatory in 49 states, which means that you need to get it no matter what. Liability coverage is used for the other person/property which might get injured/damaged in an accident caused by you. So if you hit another car and injure the person or damage the car, liability coverage will pay for that.
Tip: Get liability coverage with a decent coverage limit. If the insurance amount is insufficient, you’ll have to pay from your pockets.
Collision Insurance:
This policy will cover the repair charges for the damages to your car. You can either use it when the accident was your fault or even when the accident was not your fault and the other person’s liability coverage is not enough.
Tip: Collision coverage is very important and you should not skip it unless your car is very old and can be fixed at a very low price.
Comprehensive Insurance: This insurance policy covers your car from damages due to natural calamities, riots, fire, theft, etc. Get comprehensive coverage if your area has higher rates of crime and theft and if your vehicle is new and dear to you. Comprehensive coverage does not cost that much.
Additional Coverage
The three coverage should be enough for everyday use, but if you have bought a new car, and/or want some extra coverage and protection, then consider getting these auto insurance add-ons:
Roadside Assistance:
Comes as an extra add-on and gives the benefit of getting help in the middle of the road. Includes limited gas refilling, flat tire replacement, towing, and some other assistance anywhere on the road.
Get it if you’ll be driving long distances.
Umbrella Coverage:
It’s a type of extra protective coverage that kicks in when your liability/collision/comprehensive coverage limit is exhausted. It helps you pay the extra amount.
If you think your coverage limit is not enough, you can get umbrella coverage.
Uninsured/Underinsured Motorist Coverage:
This insurance is useful when the other person who caused the accident is either underinsured (with a liability coverage limit that is not enough to cover the treatments or repairs) or uninsured (has no liability coverage).
Personal Injury Protection Coverage:
PIP is mandatory in many states and this insurance policy covers the cost of medical treatment and other losses due to the injury. We advise new drivers to get personal injury protection coverage as we don’t need to remind you how high the costs of treatment in the US could go.
If you have medical coverage that covers car accident injuries, then you can skip personal injury protection.
Tips to Get Better Prices
When buying the auto insurance plan, remember these tips and practice them to get better prices and insurance coverage. Here are the tips:
- Know the Jargons: There will be a lot of them, so be informed and know what each technical word means.
- Choose an insurance company that is trusted, reliable, and present in most of the states.
- The company must also have great customer service and provide a good experience
That’s all you need to know to get auto insurance for the first time.
