Being a first-time car insurance buyer can be intimidating and daunting, but you really just need to know a few tips and tricks to get started. The goal is to find the right auto insurance that will fit your unique needs. If you are a first-time car insurance buyer, the entire process could get a little too overwhelming for you. Here are some useful auto insurance tips for helping first-time insurance buyers navigate the process:
1. Understanding the basics
You need to understand that auto insurance is important for protecting you against financial loss in case of accidents. Premium is paid by you to the insurance company, which agrees to pay your losses as per the policy. Policies usually last between six months and a year, and insurance companies will notify you about the renewal when it’s time.
2. Types of coverage
The policy you buy from your insurance company is a factor of many aspects, including your age, gender, driving record, and even the type of car you own. Typically, a car insurance policy could include six different kinds of separately-priced coverage, including uninsured/underinsured motorist coverage, comprehensive, collision, property damage liability, medical payments/personal injury protection, and bodily injury. However, first-time buyers also need to know and remember that not all of these are required by them as all of them might not apply to them. This is an essential auto insurance tip to follow.
3. Knowing your state law
Every state has different requirements for the minimum amount of insurance your car requires. However, the extra coverage could be worth it in case of accidents or if something happens to the vehicle. First-time buyers need to talk to insurance agents before deciding on car insurance limits.
4. Determining premiums
According to the National Association of Insurance Commissioners, there are a ton of aspects which affect and decide car insurance premiums. These include your driving record over the previous three to five years, your credit-based insurance score, your marital status, gender, age, the kind and size of car you drive, where you live – the city and the neighborhood, how much it is that you drive, deductibles you choose for comprehensive and collision coverage limits you choose for liability coverage, previous claims, if any, and your prior insurance coverage. What’s more, being a first-time car insurance buyer could also impact your premium amounts and rates. So, when it is a factor of all the above aspects, it is difficult to pin down a number for your car premium. First-time buyers can use online tools and calculators for determining a price range for their premiums.
5. Comparing auto insurance quotes
First-time buyers are recommended to compare auto insurance quotes from multiple car insurance companies. One of the easiest ways to do so is to work with an independent insurance agent who has access to tools, making shopping for different insurance quotes easy and quick. They can also advise you on what you need to look beyond quotes, such as benefits and coverages and can also identify insurance discounts for you.
6. Choosing an auto insurance company
After you have narrowed down the insurance choices from different companies, you need to check with rating agencies for the insurers’ financial analyses. Another thing that needs to be looked at is the complaint records of companies.