How to Buy Car Insurance for the First Time?

Last Revised on July 10, 2013

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There is no doubt it would be so easy if a new car insurance buyer could simply purchase the best insurance policy with a simple click of a button on the computer. But that’s not the case in reality; as a first time car insurance buyer, you have to look into so many things such as getting adequate coverage while not paying too much. This can be overwhelming and complicated. We have put together some great advice for getting a new auto insurance policy at a low premium, possibly the cheapest.

Tips for First Time Car Insurance Buyer

Getting a car insurance for the first time can not only be expensive but complicated as you do not know where to get one to start with and then you start to wonder if you are getting the fair and best deal. Here are some simple tips to guide you through the process of buying your car insurance for the first time:

What Type of Coverage from Car Insurance Can You Get: this is one of the most important things to think about and look for when buying car insurance policy. Are you getting the insurance so that you have a proof of insurance when getting pulled over by a cop or are you getting it just in case you get into accidents? There are basically four types of coverage you need to know as a new buyer: collisions, liability, comprehensive and uninsured driver. If you are planning on buying auto insurance for the first reason, then you might need a minimum liability coverage that is mandated by most state laws; but if it is for the second reason then you need adequate coverage based on your specific needs since there are so many things to get covered but it will raise your premium sky high.

How much coverage is enough? Like we said before, you can always get so many things covered in your new car insurance policy but you have to keep the price in mind as well. Don’t worry if you don’t know how much insurance coverages do you need as a new buyer; as a matter of fact, there is not specific rules for you. You can always buy the bar minimum liability coverage, options of which your insurance company will let you know. When asking for a free quote, your insurance agent or the application forms, whether done online or on paper, will explain these in details and ask your decisions after that. As a first time buyer, you should get at least an average coverage, not too many but not too less either. Usually a lot of people avoid comprehensive and collision coverage out of their policy; you should also ask about the limitation and exclusion of the insurance policy you are getting. Better be safe than sorry.

Cost: how much it would cost for first time car insurance policy? It would depend on many factors such as how long you have had your driving license for, your age, what type of coverage you want, your location, purpose of car, and car’s price tag, mileage and safety system equipments. Statistically car insurance premium do tend to be higher for new drivers as most of them are teenagers, who are considered high risk for auto accidents. But despite this fact, there are many ways to find car insurance cheap enough that anybody can afford. You can reduce your premium by paying it full for 6 months or a year which will get rid of fees and other charges, instead of making payments on a monthly basis.

Shop around: one of the best ways to get a first time car insurance premium at low price is to ask for free quotes whether it is on company’s website or on the phone with the agent. It does not cost you anything, other than few minutes of your time from the day you are calling them. Prices always change and even though you might have heard this or that insurance company is expensive from friends and relatives, you should ask for a free quote anyways because prices keep changing all the time, and you have a different driving record, car, needs, etc.

Here are the 7 easy steps to getting car insurance for the first time. These step by step guide is for questions such as if you do not have a car right now but will buy one and don’t know how to go about getting car insurance. What is the process of getting car insurance and when should you get it? Get car insurance before buying the car or after? How do I get it or where do I go? Here are the answers:

1. This is the first step, if you haven’t done so already Get a car, cheap or expensive doesn’t matter. Just a safe and efficient one is recommended.

2. Decide what type of insurance coverage you want and you can afford.

3. Call insurance companies, talk with agents or get free quotes on the internet.

4. Negotiate the insurance premium, if you can, to lower the price.

5. Review the insurance policy, look for discrepancies, and sign up.

6. Pay the premium either on a monthly basis or pay in full for 6 months in advance.

7. Keep the insurance card in your car; you never know when you will need it.

On a side not if you are wondering, whether you need to give the insurance companies any documents to get the car insurance, the answer is yes. Here are list of things or documentation required to get car insurance.

As always, please feel free to leave suggestions, ask any questions for help or simply discuss the topic. We highly appreciate your involvement and input everyday. If find it helpful, please share it with your friends by using one of the buttons below.

4 Responses to “How to Buy Car Insurance for the First Time?”

  1. Ryan Faknulm Says:
    December 30th, 2010 at 11:44 pm

    hey I just got my driving license today, do you think it is better if I buy a car under my parents name? because the car salesman said I need a prove of insurance before I take the car home. It turns out I will be paying well over $500 for car insurance since the car is new and I am a new driver. Darn I will be eventually have paid almost the same amount of money for insurance as I paid for the car itself.

  2. car insurance for teenagers? Says:
    January 3rd, 2011 at 1:27 pm

    I am buying a cheap priced car soon but I want to be able to pay for my own car insurance since my parents are working hard enough to pay off all the bills at home. What is the cheapest car insurance for teenagers lets say 16, 17 or 18 year olds? I am looking for one that won’t screw me over this and that.

    The thing is if you only 16 year old and your state allows driving in that age range, you are better of getting your car insurance under your parent’s name or policy. Some insurance companies will also base your rate on credit history, which you might not have, besides your age. If you really want car insurance on your own name, then Ttry getting a quote online or from a local broker with bar minimum liability and coverage possible. That’s the cheapest option.

  3. What is the best car insurance for first time drivers? Says:
    February 15th, 2011 at 8:17 am

    My parents wants me to sell my brand new corvette because the insurance agency is charging thousands of dollars for insurance coverage. I have never had a speeding ticket and my record is clean thus far. But they said the reason it is expensive is because my car is new and expensive, as well as as because I live in area where there are many high risk drivers especially teenagers driving sports cars and getting into accidents and speeding tickets.. could this be a reason? Also I think it is because I am a teenager.

  4. Bigboy Says:
    September 29th, 2012 at 11:53 am

    Hey im over 30 i bought a car and i miss my first payment on time can pay my payment lata wen my letter i came in it said my letter cancelation notices

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