Tips for first-time car insurance buyers
by Admin
Posted on 16-11-2022 08:07 PM
Whether you’re a recent college grad off on your own for the first time or a high school student planning to buy your first car, your first time shopping for an auto insurance policy can feel overwhelming.
We're rounded up some first time car insurance tips to help you navigate this new process. Auto insurance provides such important finanical protection for drivers that it's required in most states. You have to have it, so use these tips to help make your first time auto insurance purchase go smoothly.
There are many things that you need to know for first-time car insurance buyers. Your rates depend on many factors, including your age, where you live, your driving experience, and even your marital status. You have to choose between getting full coverage – including comprehensive and collision coverage -- or just carrying liability coverage. Comprehensive and collision coverage is a good idea unless you have a vehicle that isn’t worth much and isn’t worth repairing if it’s damaged. You also need coverage beyond liability insurance if you have a car loan. “if you've got a loan on your vehicle, your lender is going to require you to have those kinds of coverages,” passmore says.
Here are five helpful tips when it comes to changing car insurance providers. Remember that every situation is unique, so if you have questions contact an insurance agent to clarify anything you are unsure of. Understand the insurance coverage options and discounts that are available to you. That means doing research on the company you are looking to switch to and asking questions about what coverage options and discounts may work best for you and your situation. Insurance agents are there to help you create a policy that is customized to your needs. Assess the possibility of potential penalties or refunds.
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Being a mindful driver who avoids distractions and dangers can not only prevent serious accidents but also help keep your auto insurance rates low. For example, travelers insurance provides a safe driver discount of up to 23 percent according to nerd wallet. On the other hand, moving violations that carry points on your driving record, such as speeding, will also raise your auto insurance premiums.
There are several ways to get a car insurance quote. You may choose to get quotes yourself or use a licensed insurance broker to compare your options. Different carriers may offer quotes in person, online or over the phone. No matter how you get a quote, you’ll likely need to provide the information you gathered in the last step. You will also need to select insurance coverage types and limits, which an insurance agent may help with if you are unsure what you need. Most insurance professionals recommend getting quotes from at least three carriers to compare pricing and coverage options.
Many insurers will give you a break if you buy two or more types of insurance. You may also get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce the rates for long-time customers. But it still makes sense to shop around! you may save money buying from different insurance companies, compared with a multipolicy discount.
Determine how long your current car insurance will cover your newly purchased car. “if you’re replacing a vehicle on your policy, typically the same coverage will extend to your new car,” says gusner. “it can be as short as 24 hours or as long as 14 days, so check before you buy to find out what it is rather than assuming you have coverage. Also, if you’re not replacing a car, then you may not have any coverage at all. ”don’t assume the dealership will take care of the insurance paperwork for you. Not only is the staff busy, it is not its responsibility to call and add a car to your policy.
Check your rate. If you’ve been with the same insurer for a long time, it may be hard to find a better rate. But it does make sense to check annually. Consider getting a quote from an insurance broker. Because brokers work with a number of different insurance carriers, they can automatically comparison shop for you to get the best coverage at the best price. Look at consumer ratings. On the flip side, shopping exclusively for the best rate may not ultimately save you money. A less than top-rated insurer may be difficult to work with by under estimating your loss or unfairly increasing premiums if you have to make a claim.
Car insurance costs are different for every driver, depending on the state they live in, their choice of insurance company and the type of coverage they have. But when trying to save money on car insurance, it helps to know what the typical driver pays. On average, the typical person spent $1,190 on car insurance in 2018, based on the latest figures available from the national association of insurance commissioners (naic). According to the naic data, car insurance premiums rose 30% between 2014 and 2018, despite the number of insured vehicles only rising by 7%. Data from aaa put the average cost of car insurance for new vehicles in 2020 slightly higher, at $1,202 annually.