Buying Car Insurance for the First Time? Here’s What You Should Know

For many young adults, their first big purchase is often a car. While a house is definitely in their sights, a car affords them a huge sense of autonomy, nonetheless. Finally, no more standing in a crowded bus or train just to get to work or school. Just start up your car to go there.

Selecting the perfect first car can be as intense as it is fun. However, once you own a car, you must protect your investment by purchasing auto insurance, which can also be intense. Focus Insurance, an Atlanta car insurance broker, says there are a few things worth noting to get the best deal possible.

buying car insurance

Try to Pay in Full

As a new car owner, you are automatically at a disadvantage. Without an insurance history, you may be seen as a high-risk client by insurers, which often results in less-than-ideal premium rates. Luckily, insurance companies often offer a paid-in-full discount to clients.

Furthermore, this establishes your commitment to being continuously insured, making it easier to receive a more favorable rate when it’s time to renew your policy.

Decide on How Much Insurance You Really Need

All car owners are required to meet the state’s required liability insurance at the least. Of course, this is just the bare minimum, with very limited coverage. If you are sued after being involved in a car accident, for example, all liability costs beyond your policy’s coverage will have to be shouldered by you. If you’re still paying off your car, consider getting comprehensive car insurance as well. State-required policies will not reimburse you for a totaled or stolen vehicle.

Determine the Size of Your Deductible

Your deductible plays a huge part in determining how much your monthly premium payments will be. If you opt for a high-deductible policy, you’ll pay a smaller monthly fee to your insurer, but you’ll also pay a bigger share of the repair costs should you be in an accident. A low-deductible policy is the opposite: your monthly premiums will be higher, but your insurer will shoulder more of the repair costs.

Reevaluate Your Needs

Car insurance is not a set-it-then-forget thing. Your insurance needs will change as you age, so be sure that your policy is updated accordingly. Life changes that might cause your insurance needs to vary include marriage, children, and being self-employed, just to name a few.

If you need more help choosing the best insurance policy for your first car, be sure to talk to trusted Atlanta auto insurance brokers.

Sources:
How to Get Car Insurance for a First Time Driver, thebalance.com
First Time Drivers Guide To Car Insurance, dmv.org

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