If you are a first time car insurance buyer, it may seem like it is a lot of work to get a policy that best fits your needs and budget. There are a lot of different companies these days and they are all competing to get your business. So how on earth do you know which company you should trust with your insurance and which company is going to offer the lowest car insurance rates in relation to the quality of coverage that they provide? People that have never bought any type of auto insurance in the past are not going to have too tough of time getting the insurance that they need these days because everything is simplified with the help of good customer support and information that is offered online. Most people that are getting auto insurance for the first time are young drivers that just passed their driver’s test and got their license.
It seems as though most people these days have a car ready to drive immediately after they pass their driver’s test or they are looking at buying one. After deciding on which car is going to get used by the new driver, there comes a time shortly after when the individual needs to decide on an insurance provider so that they have car insurance while on the road. There are a number of different tips and tricks to getting good, low rates on auto insurance, as well as discounters that will be offered by various insurance companies. It is your job as a new driver to get the first time car insurance deal that you need so that you are satisfied with your coverage and can afford it.
Cheap Car Insurance for First Time Drivers
Getting cheap car insurance for first time drivers is definitely not going to be easy. Although there are a number of different factors that are assessed by insurance companies to determine the risk of their clients, one of the biggest factors is “age.” In particular, people that are younger tend to be charged higher rates on their insurance since statistics indicate that they end up in the most accidents and involved with more vehicle damage than other age groups. People that tell you that they can get “cheap first time car insurance” are not usually correct with this statement because the truth is that when young people are getting insurance for the first time, it is not cheap.
As people get older, the car insurance rates that they are charged for their premiums are lowered. It takes time to get lower prices on insurance because first timers need to establish a good driving record; this means having minimal traffic violations such as speeding tickets. If you are a first timer and want to set yourself up for lower prices on your insurance in the future, you should be sure to stay out of legal trouble by following all of the driving laws in your area. The amount of money that you may initially pay for insurance may be pretty high, but understand that every young driver is going to pay a lot.
First Time Drivers Pay More for Car Insurance
There are things like getting discounts for having good grades in school, and getting savings for going without accidents, but overall, the rate for young drivers is still higher than older individuals. Do not get discouraged if you were hoping to save a lot of money on your first time car insurance policy, you can still take the necessary steps to make sure that your rate is as low as possible and make sure that you are not overpaying for your auto insurance policy. Obviously the easiest way to guarantee yourself the cheapest first time car insurance coverage is by getting third party only coverage. Most people will want more than the bare minimum of third party car insurance coverage and opt for more well-rounded, standard policies.
Group and Family Car Insurance Policies
Anytime you want to save money when getting car insurance for the first time, you should ask your family whether you can join their insurance policy. Many times insurance companies really like the fact that entire families are loyal customers through their company and will offer family auto insurance discounts. A great thing to do is to ask family members about what they did for their insurance and whether you can add a vehicle to the existing policy so that everybody can save money. Although not all insurance companies offer family discounts, there are some that do, and you don’t want to miss out on savings if your family is willing to let you link up with them for more savings.
There are also other savings that you can get by getting group car insurance – group insurance means that you are adding your car insurance coverage to existing insurance policies that you have purchased through a certain company. For example, if you have a health insurance policy through a certain company that also offers auto insurance and you decide to go to them to help insure your vehicle, you may be able to save more money than you could by just purchasing a single type of policy. Always ask an insurance company that you are either already affiliate with or are considering whether they offer group savings from purchasing multiple types of insurance through their company.
Looking for First Time Car Insurance Quotes Online
If you do not have much or any prior experience with purchasing insurance, the name of the game is to gather quotes and compare prices that you are being offered. Although you want to choose the cheapest quote, you also want to look at the amount of coverage that you are being offered for the quote. Some quotes may be cheaper than others, but the quality of coverage or services may be worse than a company charging a higher rate. It is important to not make the assumption that the lowest quotes always are best when it comes to car insurance.
Look to trusted companies
The best places to start looking for first time car insurance quotes online is through websites of trusted companies. Many of these companies let potential customers apply for free quotes directly through their websites. To get quotes, you are going to need to fill out a form of information about yourself that allows the company giving you the quote to calculate your risk. When they figure that you have high risk to them, they will offer you a higher priced quote. Similarly, if you are less risky, you will get a lower, better priced quote.
Examples of some reliable companies
Some companies to consider when collecting quotes include: Geico, Progressive, State Farm, AllState, Esurance, and Nationwide. There are many other companies besides these so don’t assume that these companies will have the best rates in all cases. After you have gone to the websites of a lot of different companies and gotten your free quotes, you can compare them to see which ones you thought were best. If you thought that a particular company offered great coverage and they gave you a quote that was significantly lower than the rest, you should probably do a little bit more research into their services. Make sure that they have gotten good reviews from other customers and that they are a trustworthy company before you buy your first time car insurance policy.
Some companies like Progressive are known for even comparing their rates with many other leading auto insurance providers so that people know who has the lowest-priced car insurance for them. If you don’t want to compare quotes from all major providers on the internet, you can also have a car insurance broker do all of the hard work with comparisons for you. Websites of most car insurance companies will often have a phone number that you can call to find out more about their policy options. If you are interested in applying for insurance with a specific company, you should give them a call and find out more information regarding the first time auto insurance policies and payment options that they have available.
Determine the Amount of Coverage that You Need
Figuring out how much car insurance coverage that you need is absolutely essential for first time buyers. If you don’t know what type of policy to get, you may end up overpaying for a policy that is too comprehensive for your needs or you may end up underpaying for a policy that is too minimal for your situation. Always know what you need and how much coverage you should buy for your vehicle. Individuals that have a new, expensive car may want to get more comprehensive car insurance or a standard policy with some bonus coverage features so that their vehicle will be adequately protected.
For individuals that are looking for used car insurance to insure their used vehicle, it is probably a good idea to avoid comprehensive coverage because paying for the comprehensive insurance (over time) could end up being more expensive than the car itself. You do not want to pay more than you need to for an older vehicle. If your vehicle is worth a lot of money, obviously you’ll want to have more coverage – and rightfully so. If your vehicle is less valuable and you can only afford third party car insurance, this may be an option to consider.
There are different insurance minimums that are required in every state. Most people know that they need to have third party liability coverage so that if they are involved in an accident with another person, their insurance company can reimburse the other individual for any losses (e.g. car damage, bodily injury, etc.). You should also keep in mind your budget when determining the amount of coverage that you need; if you cannot afford a certain policy, it is probably best to settle for one that is lower priced.
Car Insurance Risk Factors that Companies Consider
You should realize that there are many risk factors that insurance companies consider when people apply for auto insurance. A few of these risk factors include: age of the driver, sex of the driver, type of car for insurance, driving history, criminal history, and there are more. Being a young driver results in higher insurance costs, so does being a male; it is easier to get cheap car insurance for women than it is for men. If you are driving around in a new Corvette, you can expect to pay more than someone driving around in an old Toyota Corolla.
If you have a poor history as a first time driver (e.g. you have already gotten into trouble with law enforcement with a speeding ticket or an arrest) you are going to have a much higher rate on your insurance. It is also very difficult to get cheap car insurance for convicted drivers – so don’t expect a low price if you have gotten a driving conviction (e.g. getting caught driving drunk). Individuals that want to know what other risk factors insurance companies take into consideration to calculate your risk so that you understand why your quote was more or less expensive than others your age that are also first time drivers.
Choosing the Best First Time Car Insurance Deal
If you are going to get the best possible deal on your first time auto insurance, you are going to need to make sure that you are getting a good price as well as a trustworthy provider that is not going to bail on you right after a car insurance claim does not go your way. There are companies that will leave you high and dry when something goes wrong (e.g. you get into a severe accident), so make sure that you are working with a company that has received good consumer reports and reviews. Take the time to read about different providers and understand that although you want the best possible price, you also want to make sure that you are getting adequate coverage.
Some things that you will want to make sure that you know about when you are signing up for a car insurance policy include:
-Whether your coverage is comprehensive
-When the coverage begins (what date)
-When your policy expires (and needs renewal)
-How your payment policy is structured (i.e. bi-weekly, monthly, etc.)
-Whether you are taking a high deductible
-The cost of your premiums
-How to deal with a car insurance claim
It is a good idea to know about all of these things before you buy your policy so that you know how certain companies handle them. Never buy a policy without doing your research and always take the time to make sure that the coverage is right for you and that you feel good about the provider that you are going with. Do not be afraid to give companies a call to ask any questions that you have regarding the policy that you have considered for purchase.
Additional Tips for First Time Driver Car Insurance
Making your car safer
One thing that you may want to consider as a first time customer of auto insurance is using a vehicle that has a lot of safety features and that is well made. If you have a safe car (especially as indicated by crash safety ratings), you will likely get a lower insurance premium because there is less of a risk of injury in safer vehicles. People that are driving vehicles that are not very safe in accidents are going to pay higher prices for insurance.
Driving a low risk car
High risk cars or imported cars are more expensive to insure than average. Know that if you are going to be driving around in a new sports car, you will probably pay more for your insurance based on the fact that your car is more expensive to repair in the event that it endures an accident or parts get damaged. There is also a greater chance of something getting stolen from a high quality sports car. Other things that you can do to save are storing your car in a garage and installing proper security features such as a burglar alarm.
Take advantage of discounts
Finally, you will want to make sure that you are taking advantage of all the discounts that are offered. For example, most insurers offer a “good grades discount” to students; all they have to do is get above a certain grade point average. This will not save a ton of money, but every little discount helps and should be utilized to save as much as possible. The best way to save over time on your insurance policy is by following road rules and regulations and not getting into trouble with the law through traffic violations. If you can keep a clean driving record over the long term, your premiums will continue to drop and you will be satisfied with the cost that you pay for your policy because it will be lower than average.
Hopefully You Found This Article Helpful
If you are a new driver and need to get auto insurance, I hope that you were able to get some helpful information out of this article and learn some of the basic things that should be done when getting first time car insurance. The process does not need to be complicated or confusing, it’s just a matter of learning what steps to take, how to deal with insurance companies, and compare their offers to make sure that you get the best rate and a policy that you are happy with.