Insurance For First Time Car Buyers: What You Need To Know

Feb 7, 2020 3 minute read

Insurance For First Time Car Buyers: What You Need To Know

Buying your first car is an exhilarating experience. You’ve probably been dreaming for weeks, months, maybe even years about the freedom of cruising down the open road in your very own vehicle.

Less exciting is the paperwork and new bills that come with your first car.

Owning a car is a serious responsibility. One of the most important aspects of that responsibility is getting your vehicle properly insured, to protect you (and others) from any damages that might occur while you’re driving.

Signing up for car insurance for the first time can be a pretty daunting task. What’s more, insurance premiums for first time car buyers can be pretty steep. You’ll be considered an inexperienced driver since you’ve never had insurance before.

Let’s take a look at what you can do to get the best rates and the best coverage for your very first car.

The Insurance You Need For Your First Car

You probably already know that you’re legally obligated to have car insurance if you want to drive. What you may not know is just what that insurance actually covers and why you need to have it.

Let’s take a look at a few different types of car insurance and what they cover:

  • Liability Insurance: Liability insurance covers any damage you may cause as the result of an accident which is your fault. Liability insurance prevents you from being sued in court should you cause an accident. It pays for expenses like repairing or replacing another person’s car which you damage in an accident, or the medical expenses of anyone you injure as the result of an accident.
  • Collision Insurance: If you are involved in an accident which is your fault, Collision Insurance is what you need to have your insurance cover repairing or replacing your vehicle.
  • Accident Benefit Insurance: This type of coverage can help you cover the costs of your own medical expenses from an accident for which you are at fault.
  • Comprehensive Insurance: Comprehensive coverage insures your vehicle against damages which don’t result from an accident. There are a wide variety of things which can be covered under comprehensive insurance coverage, including damage from falling objects, weather damage, vandalism, theft, and other damages which may befall your car even when stationary.
  • Uninsured Automobile Insurance: Even though it is a legal requirement, not every motorist on the roadways has liability insurance. Uninsured automobile coverage will have you covered should you be unlucky enough to end up in an accident where the other driver does not have insurance.

Getting Affordable Insurance As A First Time Car Buyer

Insurance companies are constantly assessing how risky it is to insure a driver. As a new driver with your first car and first insurance policy, you are automatically considered a higher risk to insure due to lack of driving experience.

As a result, you’ll be paying more on your auto insurance premiums until you have been insured for a few years.

However, there is a workaround for this. If you can be added to another person’s existing policy - such as a parent or family member - you can reduce the extra cost for being an inexperienced driver.

Another way to get some discounts on your insurance is to pay in full. That means instead of making month to month payments, just pay for the entirety of your policy upfront. This often comes with a discount.

You should also consider signing up for driver’s training! An approved course can result in savings that make the cost of the course worth it. Not to mention the valuable driving skills you will gain.

Always take your time to shop around and compare a variety of different insurance agencies. You might be surprised how dramatic the savings can be!

Are You Looking to Insure Your First Vehicle?

If you’re looking for insurance for the first time, congratulations! It’s an exciting time to be in your own vehicle for the first time. Looking for insurance can be overwhelming, especially if it’s your first time. Don’t do it alone! A BrokerLink insurance broker will take the time to get to know you and find insurance that makes sense for you. We’ve been doing this for a long time, so we can help you find the best policy at a fair price. Give us a call or stop by the office! We can’t wait to help you insure your very first vehicle.