Insurance Tip & Tricks For First Time Car Buyers

 

The first thing you’ll want to do is to understand the different coverage options that are available to you. Most car insurance policies include coverage for different types of accidents or situations. The first type of coverage is liability insurance, which pays for damage that you cause to someone else’s property, along with injuries you cause and legal defense costs. The next type is collision insurance, which covers the costs of any damage to your vehicle from an accident, regardless of who’s at fault.

After that, there’s uninsured motorist coverage and underinsured motorist coverage. Uninsured motorist insurance protects you if you’re in an accident with someone who doesn’t have auto insurance. Similarly, underinsured motorist coverage protects you if you’re hit by a motorist who doesn’t have enough coverage to pay for your damages/injuries. These two types of coverage are typically offered alongside one another.

Finally, there’s comprehensive insurance. With this insurance, you’ll have protection in the event your vehicle is stolen or sustained damage due to fire, flooding, or vandalism. In the event that your vehicle is totaled, comprehensive coverage will pay out up to the actual cash value of your vehicle. Spend some time exploring these different coverage options, including how they work and how much is the required coverage amount.

Shop Around for Quotes

If it’s your first time getting car insurance, it’s a good idea to shop around for quotes from different insurance providers. There are many auto insurance providers out there and each one has its own formula for determining how much to charge you for insurance. Getting a quote doesn’t cost any money, and by shopping around for quotes, you can ensure that you end up with an affordable auto insurance policy that meets your needs.

Bundle Your Insurance Policies

If you already have insurance policies for something else, you may be able to bundle auto insurance into these policies and save money. For example, some insurance providers cover not only vehicles but also homes, apartments, boats, motorcycles, and more. If you have homeowner’s insurance through one provider, you may be able to add auto insurance coverage at a discounted rate. Talk to your current insurance provider to know if bundling auto insurance is an option for you and if it can save you money.

Consider Deductibles Carefully

Most auto insurance policies will come with a deductible, which is the amount of money that you’ll need to pay before the insurance policy starts to pay for expenses. When exploring auto insurance policies, you’ll likely have a choice as to how much of a deductible you want. Higher deductibles mean you’ll pay more with your own money when the time comes, but it also typically means a lower monthly cost for your insurance. You’ll therefore want to find a balance between potential out-of-pocket costs and monthly costs that fits your needs.

Utilize Good Student Discounts

Some auto insurance companies provide discounts for good students. If you’re still in school, and you have good grades, it’s worth exploring which auto insurance companies have discounts available. You won’t be able to take advantage of this discount forever, but it can make auto insurance significantly more affordable for your first vehicle.

Explore Safe Driving Programs

Another potential discount from auto insurance companies comes from safe driving programs. If you can demonstrate that you’re a safe driver, auto insurance companies may be willing to give you a discount, since you’re less of a risk to insure.

How you demonstrate you’re a safe driver will depend on the requirements of the insurance provider. Some will want you to take a defensive driving course provided by your state, while others may want to install a monitor in your vehicle that tracks things such as your speed. Explore the details of safe driving programs from any insurance provider that interests you to see if they’re something that will work for you.

Avoid Lapses in Coverage

An auto insurance lapse in coverage is when you own a vehicle but don’t have insurance for it. It can happen for a number of reasons, such as forgetting to pay your premiums or canceling a policy before a new one starts. A short lapse in coverage may not have a significant impact on your insurance rates. However, if you go an extended period of time without auto insurance, you may find that insurance providers charge you higher rates. Setting up automatic payments or reminders can help you avoid a lapse in coverage.

Look for Discounts

In addition to good student and safe driving programs, there are other discounts you may be eligible for. For example, some insurance providers will give you a discount if your vehicle has certain safety features onboard or if you’re insuring multiple vehicles at the same time. Others may provide a discount if you stay under a certain amount of miles each month or if you’re a military veteran. Talk to an insurance provider representative and ask them about any discount programs they offer to know what you’re eligible for.

Review Your Coverage Regularly

It’s important to review your insurance coverage regularly. As time goes on, you may become eligible for more discounts or have different coverage needs. The policy that works for you today may not be the best policy for you in a year from now. Reevaluate your coverage especially after significant life events, such as moving, getting married, or purchasing a new car. By regularly reviewing your coverage, you’ll ensure that you always have adequate protection and that you’re paying the appropriate amount.