Purchasing Car Insurance for the First Time

Learn the Basics

There are many types of coverages all hosted under the umbrella of car insurance, but here we’ll focus on the main ones you’ll likely see come up repeatedly:

• Liability: Bodily injury liability covers injuries you cause to others in an accident, twhile property damage liability pays for the damage you cause to others’ property.
• Comprehensive and collision: While collision covers any costs associated with damage caused to your car due to a collision, comprehensive insurance covers any other type of damage outside of your control, such as damage caused by weather, fire, or other acts of nature.
• Medical payments (MedPay): MedPay is a form of medical insurance that can pay for you or your passengers’ medical costs, whether you are at fault or not.
• Personal injury property (PIP): Like MedPay, PIP covers medical costs for you and your passengers. It also covers lost wages.
• Uninsured motorist coverage: If you get in an accident with an uninsured or underinsured driver, this coverage will help cover any leftover costs.
• Roadside assistance: Technically separate from insurance, roadside assistance services guarantee that help will be available if you have any trouble while on the road. This type of service helps with flat tires, running out of gas, and general towing needs.

Consider Your Car

Not all cars are equal. Are you driving an old beater car that you got from your parents when you turned 16? Or does your vehicle still have that new car smell? How much insurance you need and what types of coverage you should consider has a lot to do with what your car is worth.

If your car is older, there may be little point in purchasing much aside from liability insurance. If your car gets totaled, for example, your insurance company is going to base their payments on what the car itself is worth today, which may not be much depending on the age of your car.

Likewise, if your car is brand new or close to it, you’ll definitely want to spring for more protection -- replacing this type of car without insurance would cost a lot of money.

Figure Out Your Budget

Once you know how much coverage you want for your car, you then need to turn to your wallet. Most insurance policies can be paid monthly, biannually, or annually, but the bottom line is that insurance costs money and you’re gonna have to pay up sometime.

If you don’t have much to spare in your budget, your best bet might be state minimum insurance. This is the lowest level of insurance that you can legally drive with in your state, making it also the cheapest option in most cases. Just be aware that purchasing less insurance does involve some inherent risk if something does happen.

Compare Quotes Online or Over the Phone

Now you’re ready to start shopping.

Most insurers now allow drivers to purchase policies online, on the phone, or even in person when an office is nearby. How you choose to do so is completely up to preference, but we strongly recommend that everyone take the time to research rates and coverage options online before committing to a carrier.

Comparing quotes can be done in several ways. Some drivers go to the websites of each of the major carriers and get quotes from each one; similarly, some drivers call up a bunch of carriers to get the same information. If you’d rather save some time, however, websites like TheCarInsuranceGuide.com offer quick quote comparisons for free, all in one place. With us, all you have to do is fill out a simple form and we provide a list of relevant quotes within seconds.

However you decide to gather quotes, you’ll now want to choose the most appealing one or two before moving onto the next step.

Request Discounts

Now that you’ve chosen your top contender(s), it’s time to call them up and ask directly about what discounts they offer. Car insurance carriers offer all kinds of discounts, whether they’re related to one’s age, job, or even style of payment. While discounts may look small on paper, they make a huge difference, particularly for new drivers who may be on a budget.

Don't be afraid to ask what kinds of discounts you are eligible for. This can make a world of difference on your final bill.

Make the Purchase

Once you are satisfied with the policy you’ve found, you can buy it! For this, you’ll need to be ready to tell the insurer the following:

• Your name, birth date, ID number and social security number
• Your current city, state, and home address
• Your contact information including your phone number and email
• The type of car you drive, as well as its vehicle identification number (VIN)
• Your payment information

Just like with quotes, most carriers now allow you to purchase insurance online or over the phone. The process shouldn’t take more than a few minutes.

Stay Aware and Keep Comparing

And congrats! You’ve successfully purchased insurance for the first time. Don’t get too comfortable, though -- insurance companies tend to raise rates for loyal customers as the years go by, regardless of how rates are fluctuating in the industry at large. For this reason, sticking with the same company forever will likely cost you a lot of money overall.

The solution? We suggest that all drivers, no matter how long you’ve been insured, take the time to get back online and research available rates every year or two. This way you can ensure that you’re never stuck overpaying.