Getting Car Insurance for the First Time
Great driving comes with significant financial responsibility. Finding the right car insurance after buying your first car or when your parents decide it’s time you have your own insurance policy is challenging. However, a little research and preparation ensure you have a good insurance policy at the best rates.
Choosing the right car insurance company is an essential step in owning and driving a vehicle. The right insurance policy protects you and the assets you have when involved in an accident.
Shopping around for multiple car insurance quotes, maintaining a good driving record, and considering available insurance discounts will help you keep the insurance costs low.
Why is car insurance necessary?
First-time car insurance buyers may deem auto insurance as an unnecessary expense. However, car insurance is critical to every car owner. A good insurance policy covers your costs in the occurrence of accidents to your policy’s limit. In addition, it’s a requirement by the law for any driver to be insured.
Which company has the best and cheapest insurance rates?
Our statistics and various samples show that State Farm has the lowest insurance rates, followed by GEICO. However, there are other cheap car insurance companies that give you the best coverage for less.
Types of insurance coverages
The existence of many insurance providers in the market today is a daunting challenge to many drivers looking for an auto insurance policy. Understanding the types of car insurance coverages makes it easy to choose a good insurance policy with the best low rates. Knowing the various coverage options and the policy limit is essential when picking an auto insurance company.
Liability insurance coverage
This kind of insurance pays for any damages that a driver causes to other people’s property and covers their medical bills. It’s also known as liability coverage. In addition, the policy pays for damages caused to third parties.
This type of coverage covers costs for repairing the vehicle if you hit another car, wall, or post. This policy varies in different auto insurance companies. Choose an insurance policy that has low rates but fully covers you in case of an accident.
Also called full coverage insurance, this coverage pays for damages to your vehicle unrelated to a crash incident. The policy covers events such as vandalism, theft, weather accidents, or collisions with animals.
Underinsured motorist coverage
Often referred to as uninsured coverage, this coverage is required in various states to cover expenses from damages caused by your vehicle. If you are involved in an accident with uninsured drivers who cannot compensate for the injuries. Best cheap car insurance for first-time buyers
Identifying the best and cheapest auto insurance for first-time buyers and drivers can be very challenging. However, we provided the best insurance rates from our research based on new young drivers. We identified the two cheapest car insurance companies with a state minimum liability coverage.
State Farm and GEICO provide the best low rates and are available to all drivers. The two insurance providers have the best car insurance policies. State Farm has an annual average premium of $3 309, while GEICO has an average yearly premium of $ 4,151. They both provide full coverage at a level of 100/300/100.
We recommend comprehensive coverage with liability levels of 100/300/100 when determining the amount needed to insure your car.
How to get an insurance quote and buy car insurance for the first time
Every new driver needs to understand how the insurance process works. Shopping for the best and cheap insurance coverage entails getting many quotes. New and young drivers can save a lot annually by receiving quotes from multiple insurance providers indicating they enjoy the best low insurance rates.
The following personal data will be required when looking for insurance for your new car; a driver’s license, driving record, marital status, educational level, date of birth, home address, vehicle description, etc.
Young and new drivers should research the companies with the best quotes before buying. In addition, it’s important to consider financial advantages like insurance discounts, if they are offered, before getting a quote.
Why first-timers pay more for car insurance
Driving is a skill that improves with more experience on the road. However, if you are a young or new driver and want to buy insurance coverage, it comes at a higher insurance cost. This is due to the high probability of occurrence of an accident among inexperienced drivers. To compensate for this likelihood, insurance providers charge higher rates. However, the insurance rates decrease with time as long as you keep your driving record clean.
Shopping tips for first-time drivers and insurance buyers to pay less
Ensuring your car for the first time can be very expensive, especially for first-time drivers. However, there are various ways to maintain your insurance costs low. The following tips will guide you on how to find cheap car insurance.
● Shopping around – do thorough insurance research and compare the quotes to get the best selection with the lowest rates.
● Taking a driving course – GEICO and State Farm offer insurance discounts to first-time drivers who have taken a safe driving course.
● Good student discount – a good student discount goes to young or new car owners who are students. The rate varies in companies as each has its own standards and required grades before earning the discount. Payless as you pick an insurance company that offers this policy.
● Maintaining a clean driving record – maintaining a clean record entails avoiding accidents and overspeeding tickets. This will keep your insurance costs low as insurance providers base their rates on this factor.
● Choosing your car well – a cheap or an old vehicle costs less in terms of repairs, you’ll save more on comprehensive and collision damages. Pick a car you can easily replace with your money and opt for liability coverage only to save on insurance costs.
FAQs about buying your first auto insurance policy
How do you get an auto insurance quote?
Contact different insurance companies directly or reach out to a nearby insurance agent to get the car insurance quotes.
Can you buy car insurance from a car dealer?
Yes, it’s possible, but it limits the advantage of comparing quotes to get the cheapest rates.
How much is car insurance for first-time drivers?
Insurance prices depend on individual preferences, the type of coverage, and the insurance company. The cheap state rates range from $1771 for minimal leverage to $3,309 for full comprehension coverage at liability levels of 100/300/100. The expensive coverage varies from $6575 minimum to $12,797 for the full range.
The bottom line
Getting insurance for your car for the first time is a heavy task. Still, it’s every driver’s responsibility to have one. First, prepare and research well to find the best coverage that will last you longer. Then, choose an insurance policy with reasonable premium rates and make payments to protect yourself and the car.
About the Author
Rose Rosie is a writer for the personal finance website, Joy Wallet, which provides readers with useful information, resources, and tools to help maximize their financial fitness.