How to Purchase Your First Auto Insurance Policy

Shopping for Your First Policy? Know the Ropes...

As a new driver, you may have a ton of questions about how to purchase your first auto insurance policy.  What company should you choose? What type of coverage do you need?  All common questions for new drivers. Hopefully, this article should help shed some light on the basics of purchasing your first auto insurance policy.

#1- Collect your Documentation: Before you start shopping, collect any information that a car insurance agent might ask for in order to give you a quote. Have your driver’s license, social security number and VIN number of your vehicle (as well as the make and model) handy.

#2- Know what’s Required: If you lease or finance your vehicle, or are planning to, your lender or leaser might have minimum requirements on how much coverage you purchase. Call your lender or lease company and ask them what they require and how to forward them your proof of insurance once it’s purchased.

#3- Get Quotes: The best way to get an idea on pricing is to get multiple quotes. An online shopping website is often a great tool for new drivers as they can compare car insurance  rates from multiple companies by filling out just one form. It is recommended to get rates from at least 2-3 companies to make sure you are getting a good deal.

#4- Compare Apples to Apples: If you don’t use a comparative shopping site, make sure when comparing quotes that you are looking at comparable coverages.

#5- Select a Comfortable Deductible: Your car insurance deductible is the amount you will pay out-of-pocket in the event you are involved in a car accident where there is damage to your vehicle or the other vehicle. While your rate will decrease as you raise your deductible, you don’t want to be locked into a deductible you can’t afford in the event of an accident. Think about your monthly income and find a deductible that you would be comfortable paying if you had to.

#6- Ask for Discounts: New drivers pay some of the highest auto insurance rates in the country because of their lack of experience on the road. For this reason, you want to take advantage of any and all discounts you may be eligible for. Ask for a good student discount which can save you up to 10% on your car insurance if you maintain a minimum of a B average

#7- Get Organized: After you purchase your policy and receive your documentation, be sure to place your insurance card- or a copy of  it- in your vehicle somewhere. Also, file a copy of your policy in a place where you will be able to quickly find it if you need to reference it for any reason.