Planning To Buy A New Car? 5 Car Insurance Tips For First Time Buyers

Posted on: 2 April 2021

Owning a car has numerous benefits — it's more convenient than using public transport and saves you time. But car ownership comes with some financial responsibilities, including car insurance. Most car buyers know that they need to buy car insurance, but amid the excitement of owning a brand-new car, you may not do your research as carefully as you should.

When purchasing your first car, finding the right auto insurance can be a daunting task. But with a bit of preparation, you will get the right cover for your situation. Here are some tips for purchasing car insurance.

1. Buy Auto Insurance in Advance

Although you can buy a new car before buying insurance coverage, it's illegal in most states. In fact, most sellers will need proof that you have car insurance before they can let you leave the lot. What's more, if you're financing your car, the lender will demand that you get liability, comprehensive, and collision coverage. Therefore, ensure that you purchase them before you take your new car home.

2. Consider Multi-policy Discounts

If you're a homeowner or own a rental property, you may consider buying car insurance from a company that will give you discounts if you bundle these multiple types of cover with them. You will save more money on both policies.

3. Check the Quotes

You'll receive different quotes from different carriers. Usually, they will include low coverage, standard coverage, and high coverage limits. Generally, it is good to purchase an insurance policy with a high limit depending on the coverage type. Remember to keenly check the quotes because they may include other types of coverage.

4. Understand How Deductibles Will Affect Your Premiums

The deductible is the money you pay toward a claim or accident. Therefore, choose an amount that you can afford to pay comfortably. However, your deductible will directly affect your premium. You will pay a high insurance premium when you choose a low deductible, and pay a low insurance premium for a high deductible.

5. Read the Insuring Agreement

Insuring agreements are filled with legal jargon that can be boring to read. However, don't be tempted to gloss over clauses in the contract. Read and understand what is included in your cover. Ensure that you talk to your agent if you don't know how your policy responds in different circumstances.

Purchasing car insurance is mandatory in most states. It is also a great way to protect yourself and your family from high potential costs during an accident claim. That is why you should purchase the right car insurance.