First Time Car Insurance - Buyer Tips

If you’re a first time car insurance buyer, you’re probably overwhelmed with the insurance-buying process. Deductibles, coverage levels, exclusions, comprehensive coverage, liability—it’s a lot of information to digest. But don’t worry: once you learn a few car insurance basics, a first time car insurance buyer will find it incredibly easy to shop for a policy.

First Time Car Insurance Buyers: Learn the Basics

If you're a first time car insurance shopper or shopping for a student car insurance policy, you're probably wondering "What exactly is a car insurance policy, and why do I need it?" Car insurance protects against financial loss in the event of a car accident, theft, or other occurrence. It is a contract between you and the insurance company: you agree to pay a premium and your insurer agrees to cover losses as defined in your contract. Car insurance policies typically last from six months to a year. Your insurance company will notify you when it’s time to renew your car insurance policy.

A minimum amount of liability insurance is required in nearly every state. For more detailed insurance information for first time car insurance buyers, including details about the major forms of required and optional car insurance coverages, visit our Auto Insurance Learning Center.

Next: Determine How Much Coverage You Need

Determining how much coverage you need is critical for young insurance buyers. Purchase too much coverage and you overpay; purchase too little and you’re not adequately covered.

Almost every state requires drivers to carry a minimum amount of liability insurance, but it may be in the best interest of most first time car insurance buyers to purchase additional coverage. If you’re at-fault in an accident in which the other driver is injured, minimum liability coverage may not be enough to cover the damage or medical expenses, in which case youwill be financially responsible.

If you're a first time car insurance buyer or shopping for a teenager car insurance policy, contact a car insurance agent for professional advice. It’s always better to be safe than sorry—especially when it comes to your finances.

Should First Time Car Insurance Buyers Purchase Comprehensive Coverage?

First time car insurance buyers must also decide whether or not they need comprehensive coverage, which protects your vehicle against theft, storm damage, and other non-collision damage. If you own a newer vehicle or are financing a vehicle, comprehensive coverage is probably a must. But if you own an old clunker, it may be best to skip this car insurance coverage and pocket your savings.

When Getting Free Car Insurance Quotes, Search for Discounts!

Once a first time car insurance shopper is ready to begin shopping for quotes, they should begin thinking about saving money on their policy. And one of the best ways to save money is to search for discounts. Are you a good student? Is your vehicle 5-star safety rated? Does your vehicle have a car alarm? Do you drive a hybrid car? If any of these apply, you may be entitled to a car insurance discount!

If you’re looking for even greater savings, check out 10 Ways to Save on Car Insurance.

Calling companies one-by-one for car insurance quotes is a painstaking process. InsWeb.com makes the first time car insurance buying process easy by doing the legwork for you. Here, those looking for a first time car insurance policy fill out a simple quote form and receive free, no-hassle car insurance quotes from multiple leading insurance companies. Compare the quotes for car insurance that you receive and choose the policy that’s best for you!