How to Purchase Your First Car Insurance Policy

It’s an exciting time in your life. One that you will remember for a lifetime. Before you can enjoy your new freedom, there are some things you must do. You need to make sure you have the right insurance and that your vehicle is maintained.

The most important task of all is buying a car insurance policy. Car insurance is mandatory (also known as. You are legally required to have car insurance. You also risk financial ruin if you drive without insurance.

Must Read: vw auto parts

Here are some things you should know about purchasing your first auto insurance policy.

Why would you need car insurance?
All passenger vehicles that are driven on US roads must have insurance. You are at risk if you don’t have insurance.

  • Traffic tickets
  • For repeat offenses, escalating penalties
  • Suspension of your license

Never Miss: the importance of auto insurance comparison

Driving without insurance could lead to severe financial consequences. You could be held responsible if you cause an accident. This includes legal costs, medical bills and property damage.

Your insurance company will pay for your car insurance if you have adequate coverage.

How to Buy Your First Policy?
There are thousands of car insurance companies competing for your business in the huge market. This can make it difficult for a new buyer to understand the insurance industry’s jargon, which includes different coverage amounts and policy features.

This cheat sheet will help you understand the basics of your auto insurance policy and what you should know about them.

Comprehensive Coverage covers damage that’s not caused by a collision. It could be an act by God, such as a hurricane or flood, but it also could be damage due to theft. Comprehensive coverage is required if you have a car loan.
Collision coverage covers damage to your vehicle that is caused by an actual collision. Collision Coverage is required if you have a car loan.

Also Read: getting online auto insurance quotes

  • Liability coverage covers damages you cause to property and other people. Liability coverage covers damage to other people’s homes if you lose control of your vehicle and collide with someone’s house. Your liability coverage covers bodily injuries. All states require liability coverage.
  • You may not need uninsured motorist coverage in your state. However, you will probably still want it regardless of the law. This is your policy’s coverage if you are the victim of an accident involving uninsured motorists. Your insurance company will pay you if the other person involved in the accident is unable to.
  • Medical Payments Insurance pays for any medical costs you or your passengers may incur as a result an accident. This coverage is required by some states, while others are optional. It’s an option to add to your policy, just like uninsured motorist coverage.
  • The Internet is the fastest and most efficient way to compare car insurance rates. Most people use Cheapest Auto Insurance in California to get the best price. However, any insurance comparison site on the internet will simplify and expedite the process.

How to Save Money on Premiums?

As a new driver, you might find your premiums quite high once your quotes begin to roll in. This is because insurance companies recognize that you are a novice driver and will charge you a premium to cover your risk.

Most popular: tips to choosing the right auto insurance company

There are many ways to lower your premiums.

  • You should take advantage of any discount offered. You may be eligible for a ‘good student discount’ if you are younger than 24. If you have a 3.0 grade point average or higher, this will allow you to get a lower car insurance premium. A driver’s education or defensive driving class may be eligible for a discount. Your insurance agent should be aware of any safety equipment in your car. If your vehicle has anti-theft devices, side curtain airbags or side curtain airbags, some companies may offer a discount.
  • Your deductible should be increased. Insurance companies will usually quote you a policy that has a low deductible. 100 is the most common amount. You can reduce your premiums by paying a $500 or $1,000 accident deductible.
  • Compare prices. There will be a wide range of prices between different insurance companies. It is important to compare prices from different providers as well as a range of online comparison services for car insurance.