First Time Auto Insurance Buyer’s Guide
For those in the market looking for auto insurance, there are a few things to keep in mind for first-time buyers. Staying under mom’s or dad’s insurance may cost a lot less compared to being considered as a greater risk and pay way more. First time buyers can count on finding an affordable auto insurance company.
First off, first-time car insurance buyers normally do not have a lengthy credit history and are many times more likely to have an accident than a driver that is over the age of 25. For those that are not homeowners or not married, they normally don’t have a lot of discounts available to them. However, for those that are graduating off of their parent’s insurance policy, they will be considered previously insured. That will greatly lower what they will pay. Any previous driving record that one may have will apply towards a good driver discount on a new policy.
The first tip to finding the right auto insurance is by deciding on how much insurance one needs. It may depend on many factors such as assets and how much one may owe. Dependents may also contribute to the cost. First time buyers need to make sure that they are aware of the minimum state liability insurance to drive legally. For those that have savings or even a house that may be a target in a potential lawsuit, buying additional liability insurance is a great idea. If found at fault of an accident, one may not have to pay anything that the insurance will not.
Another tip to keep in mind is for those that owe money on their vehicle or if they can not easily replace it, comprehensive and collision policies are helpful. The minimum liability insurance that is required to drive may not be enough to pay for any injuries that may be considered serious in many states. This is only enough to drive legally without having to worry about the consequences. First-time buyers should only consider buying the state liability minimum if they are insuring an older car or they have no savings to help protect them from any lawsuits.
The buying process is exceptionally the same way no matter what type of insurance one is buying. One should consider comparing quotes online once they figure out what type of coverage and policy they will best benefit from. It is wise to get quotes from several different auto insurance companies since the premium costs will vary widely. Also, make sure to compare the coverage that is being offered because a policy may cost less and offer different features whether they are fewer or more.
Making sure that the company is reputable is another good tip to keep in mind. First-time buyers should consider reading company reviews before they even consider obtaining a quote from them. All major insurance companies are also rated by rating agencies on their ability to be able to pay claims. These ratings can be found online and even at public libraries. All insurance policies are considered legal contracts, so first-time buyers need to understand what they are buying. Many technical terms can be found in an insurance policy making it harder to comprehend. Before signing on the dotted line, ask questions and try to make sense of it all.
Affordable auto insurance is widely available no matter if one is a first-time buyer or not. There is a lot of research to be done and comparisons to be made before settling with any one insurance company.