Your First Car Insurance Policy: All Your Questions Answered!


The big day is here. You’re finally getting your own car. Sorry to burst your bubble, but there’s a tiny yet vital detail that you must take care of before you start showing your wheels off. Yes, its auto insurance. This is vital because you’ll be paying for it for the rest of your life. Also, if you don’t get enough, or get too much, you could end up losing a ton of money. So let’s delve into the complex and exciting world of car insurance. Insurance may seem confusing and daunting given the numerous companies, various types of coverage and the prospect of paying premiums every month, but it doesn’t have to be. This article will answer your questions and help you make important car insurance decisions.

Why do I need it?

Firstly you need insurance in order to drive a car legally. Getting caught driving without insurance means serious trouble with the law. You may have to pay heavy fines and have your vehicle impounded and your license suspended, depending on the judge’s ruling and the number of times you’ve repeated this offense. Secondly, if you cause an accident while driving uninsured, you will be responsible for the damages to your car and self, and may even have to pay for medical bills and property damages incurred by the other party. Having adequate coverage means that in the event of an accident, you won’t lose a lifetime of savings/ go into heavy debt.

Which car should I buy?

Some cars cost more to insure than others. Driving a sports car, for example, will result in higher rates because they draw attention, get stolen and the demographic of drivers who buy them is more likely to be rash, which can result in car accident claims. At the same time, driving a rundown, beat up old car isn’t good for your premiums because a car like this requires more repairs and maintenance. A secondhand car that has safety features is in mint condition and hasn’t been driven for more than a couple of years is likely to get you the best car insurance rates.

How do I pick an insurance provider?

Look for reputed reliable providers that have been in the business for a while and have good ratings and reviews. Opt for auto insurance companies that offer discounts, and give you reasonable rates for thorough coverage. You should also chose companies that offer home and other insurance besides car insurance: having multi-policy insurance can save you big bucks.

Why are the quotes I get so high?

Several different factors go into the car insurance quote. Your age, neighborhood, state, driving record, credit history, etc., are just some of the factors. If you are a young driver (below age 25), have traffic violations, live in a rough and/or disaster prone neighborhood or don’t pay your bills on time, chances are you’ll receive expensive quotes.

How can I reduce insurance costs?

Ask your company if you’re eligible for any discounts, such as the air bag and safety device installation discounts, good student discount, defensive driver’s credit, etc. You can also choose to get a higher deductible (no higher than an amount you can afford!), or keep looking until you find a reputable company that gives you cheap auto insurance quotes.

How much coverage do I have to get?

This varies from state to state. You are required to have minimum liability, and some states also require Uninsured/Underinsured Motorist coverage as well as Personal Injury Protection. If you take your car on loan, then you may have to get collision, comprehensive and GAP. You should get the most thorough coverage you can afford; insurance is a worthwhile investment, and protects your financial interests in the long run.

Car insurance does not necessarily have to be tedious, stressful or expensive. Look at it as a form of security that allows you to sleep easier at night. And if you play it right, your insurance can turn out to be one of the wisest investments you’ll make. Hopefully you’ve gained valuable advice from this article, and can now easily make the right decisions regarding your first car insurance policy.

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