Navigating Auto Insurance for First-Time Car Buyers 

First-time car buyers have a lot to navigate during the purchasing process. Not only do you have to get everything aligned for the deal, but you also need to think about the best car insurance for new drivers. You don’t want to pay too much since you might have to make a car payment too. You can make the best decision about your coverage when you understand everything about first time driver car insurance. This guide to your first car insurance policy can steer you in the right direction. 

Steering Through the Basics of Car Insurance 

Your first car insurance policy has basic requirements plus any additional coverage you might need. Understanding these components is crucial to making an informed decision. The main components of an auto policy include the following types of coverage. 

Liability Coverage 

This coverage is considered the minimum base coverage. It ensures that you have help paying for medical costs, legal bills, and other things if you are responsible for an accident. Many states require a minimum amount for liability coverage. However, you can set the amount higher to make sure you have enough coverage to pay for any losses that occur. 

Collision Coverage 

This covers your vehicle if it sustains damage due to an accident, no matter who is at fault. Lenders usually require you to carry this type of coverage if you still owe money on the car. Collision coverage is particularly important for new drivers since it ensures that your investment in your vehicle is protected, even in situations where you might be at fault. 

Comprehensive Coverage 

A car crash isn’t the only way your car could potentially suffer damage. For example, a tree branch could fall on your vehicle, or it could get stolen. In these and other cases, you will be covered under the comprehensive component. Comprehensive coverage also applies to vandalism, flood damage, or other unexpected events, giving you peace of mind knowing your car is safeguarded from various risks. 

Personal Injury Protection 

Personal injury protection (PIP) does just what it says — it protects you if you’re injured in an accident, regardless of who is at fault. Some states require you to carry a minimum amount, but for the most part, the amount of protection you carry is up to you. You want to make sure you have enough to cover the cost of major hospital costs. PIP will work in conjunction with your health insurance. 

Plotting Your Route: Assessing Your Needs 

As you’re navigating auto insurance and determining what level of protection you need, it’s important to assess your unique needs. Everyone’s ideal level of protection will vary depending on their circumstances. Various life changes can affect your car insurance needs, too. The value of your vehicle is one factor when determining the amount of coverage you need. Newer vehicles may need comprehensive, while older vehicles may be able to get by with liability only. Your car model will affect your premiums as well. 

Understanding State Requirements and Lender Expectations 

Whether you’re purchasing first time driver insurance or you’ve been driving for a while, most states require you to carry a minimum amount of liability coverage. The amount varies from state to state, but the average amount states require is $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 for property damage. 

In addition to this requirement, if your vehicle is financed or leased, your lender will likely require you to purchase full coverage insurance. This includes both comprehensive and collision coverage. 

Financial Navigation: Cost Factors and Savings 

No one wants to overpay for their first car insurance policy. Everyone knows that new drivers will have to pay more than experienced drivers with a good record. However, there are ways to reduce your premium costs. Many carriers offer discounts for eligible drivers. Some of these include: 

• Bundling: Some insurers will give a discount to customers who bundle more than one policy together. For example, if you have homeowners insurance, you can bundle that with your auto policy for a reduced cost.
• Vehicle safety: Some carriers will provide savings on your premium if your vehicle has additional safety features. Many newer cars come standard with extra safety features.
• Good driving record: Even if you’ve only been driving a few years, if you have a clean record, you will likely be eligible for a discount. Avoiding accidents and traffic violations can lead to significant savings over time.
• Billing discounts: Check with the carrier about discounts for choosing paperless billing or paying your premium in full.
• Good student discounts: If you are still in school and earning good grades, you may be eligible for this discount. Check with your agent about the criteria. 

Locking in Your Policy: The Purchase Process 

No matter what you do, you will need to have some type of vehicle insurance. The hidden costs of driving without insurance can’t be overstated. So, as you move forward with your car insurance for a first time driver​, be prepared before you go. You can gather all the documents and information you need to make the process more seamless. 

Gathering Necessary Documentation: What You Need to Get Started 

There are certain types of information and documents you’ll need to have ready when purchasing your insurance policy. These include the following: 

• Your full name
• Address where the vehicle will be located
• Date of birth
• Your driver’s license number
• Vehicle identification number (VIN) for the car you’re insuring
• Vehicle mileage
• Driving record, including any tickets or accidents
• Information that aids in qualifying you for discounts
• Type and amount of coverage you will purchase
• Desired deductible 

Get Started with a Free Quote from Acceptance Insurance 

Whether you’ve just purchased a new vehicle or are in the process of doing so, make sure you get the best rate for your car by obtaining a quote from Acceptance. Comparing rates is an important step for first-time car buyers. Don’t settle for the first offer you receive; explore your options to ensure you’re getting the most competitive rate. 

Reach out to our experienced policy advisors to receive your free auto insurance quote today. At Acceptance, our agents are standing by to discuss any concerns you may have. They will ensure you get the best coverage at the most affordable price. Contact us by phone at (877) 405-7102, visit one of our many locations, or get a quote online.