Buying Car Insurance for the First Time: A Helpful Guide

Owning your first car comes with many responsibilities, and one of them is purchasing an insurance policy to protect yourself in the case of an unfortunate event like an accident or robbery.

If you've never purchased car insurance before, you probably have a lot of questions. What should you look out for in an insurer? Or how about what you need to be approved? The good thing is you're not alone! It's actually very easy sourcing car insurance for the first time when you know how things operate.

Use this helpful buyer guide for purchasing car insurance for the first time to take the stress out of the process!

What Is Car Insurance?

Car insurance covers a driver and their vehicle financially in the case of an accident and pays out for damages caused to another person and their vehicle. All car owners must own a car insurance policy if they want to drive on the roads in the USA; it's the law.

Plenty of reputable insurance companies throughout the country offer packages for various prices. As a driver, you'll have to choose one form a contract with so that you're financially secure in the case of an emergency.

Types of Car Insurance Policies

When it comes to purchasing a car insurance policy, there are different types customers can choose from. Some of the most popular options include:

• Fully Comprehensive: This is the most expensive and protective option. It covers you for car accidents caused by yourself without anyone else involved or another party. Additionally, it covers you for damages you caused to someone else or their vehicle. You'll also receive compensation for fire and theft.

• Liability: It covers you for causing damage to someone else's vehicle, their legal fees, and any injuries they inflicted during the accident.

• Collision: This coverage protects you if you have an accident in your vehicle, whether it was caused by yourself or another driver.

What You'll Need to Get an Insurance Policy

You'll need some things before getting approved for an insurance policy in the USA. While every insurer's requirements are different, below is a list of some of the main things you can expect the company to ask you for.

• Your full name 

• Your date of birth

• Your social security number

• Your home address

• A full copy of your driving history

• A full copy of your driving license with the license number

• The exact location where the vehicle will be kept when it's insured and any details that may put the car at risk

• Your driving history

• Your vehicle registration number

The Things Car Insurance Doesn't Cover

If you're considering purchasing a fully comprehensive car insurance policy, remember that while it covers most things, there are a few situations where you won't be covered like:

• Trips to your mechanic for maintenance

• Any accidents that happen when there's an uninsured driving the car

• Using the car for ridesharing purposes

• Damages exceeding the amount your policy covers you for

• Injuries that your pets sustained during an accident

What Will Affect the Cost of Your Insurance Premium?

No insurance premium will be the same price as another because there are so many factors that can influence the cost, including:

• Your age

• Your driving record

• The number of years of experience you have

• Your gender

• History of insurance

• Your mileage per year

• Your credit score

• Past claims

• The type of vehicle you own

• What coverage you're seeking

Steps for Getting a Car Insurance Policy

Getting a car insurance policy will be the same for everyone. Here are the steps you can follow to know you're doing things correctly:

• Step 1 - Select the make and model of the car you want to insure so you can begin getting quotes.

• Step 2 - Shop around between different insurance companies and outline some of your favorite options.

• Step 3 - Contact your preferred choice and apply for a policy. Some companies will allow you to do this online, while others might make you call them up and ask you a few questions before you proceed to the next step.

• Step 4 - Wait for the approval to come through.When it does, you'll receive a letter in the post a couple of days later with your insurance sticker and details on it. 

• Step 5 - You're officially road-worthy!

Tips for Securing an Affordable Insurance Policy

Finding an affordable insurance policy as a first-timer isn't totally impossible. Sure, you'll be paying more than someone who has a couple of years of experience under their belt, but you can do some things that will help you avoid being overcharged, such as:

• Shop around and see what all the insurance companies are offering, and choose the package that suits your budget and needs.

• Consider lesser-known regional insurers rather than the big, well-known brands.

• Don't be afraid to pretend to a company that you've got an offer and you want to see if they can match it.

• If you're insuring an old vehicle that's not worth much money, consider avoiding full comprehensive insurance.

• Ask if there are any discounts for first-time buyers.

• When you're buying a car, consider opting for a vehicle with a small engine size, as they tend to be more affordable to insure.

• Get an anti-theft device, as some companies offer reduced insurance rates for cars that have them installed.

Purchase Your Car Insurance Policy Today!

It's stressful to have to buy an insurance policy for the first time. You have to consider so many things to ensure you make the right decision, from the financial implications to the type of coverage you want.

We hope this guide will help you through the decision-making process and assist you when you have to buy your policy. 

Remember, an insurance policy is only for one year or, in certain circumstances, six months. So, if you aren't happy with the company you've chosen, you can always change to another when the contract is finished.