It can be a very exciting milestone for you when you buy your first car, but there are many things you need to do before getting on the road and embarking on new adventures. Obtaining the right car insurance is one of those things.
Car insurance provides a safety net as it guards drivers against common roadside hazards or forms of liability related to the operation of a motor vehicle. In fact, around 3,700 people are killed globally each day in crashes involving cars, buses, motorcycles, trucks, bicycles, or pedestrians. This is why car insurance is a requirement in most countries.
You may be apprehensive if you are a first-time car insurance purchaser and this might even seem like a daunting task. It can be difficult to decide what type of insurance policy you want and how much coverage you need.
Being a good first-time car insurance buyer isn’t easy, but in the article below we’ve come up with some tips to help with the process.
Gathering the Right Information:
First, you will need a few pieces of information to get auto insurance. You may be asked for information during the process of obtaining a car insurance quote. This includes your personal details, information about other household drivers, and the vehicle.
The information you might need for household drivers includes full legal name, number of driver’s licenses, date of birth, Social Security Number, and address, and if relevant, you’ll need to provide a history of tickets and accidents.
Insurers may request your ZIP code, age, driving record, and driving history to generate an auto insurance quote. Insurance companies will ask about your driving record but also access motor vehicle data to verify your claims history and that of any other drivers on your policy.
The additional information you’ll need to provide includes the year, make, and model number of your vehicle; vehicle identification number (VIN); mileage; and date of purchase.
Your insurance price may be affected by the make, model, and mileage of your car. The VIN can provide insurance companies with valuable information, such as safety features which could result in a great discount.
Obtain a Car Insurance Quote:
You can get auto insurance quotes in several different ways. You might want to obtain car quotes yourself or use a licensed broker to compare your options. Quotes may be offered by different providers in person, over the phone, or online. Regardless of how you get a quote, you’ll need to enter the same information.
If you’re unsure about what coverage you need, an agent can help you choose the right type of insurance and the appropriate limits.
Insurance professionals generally recommend getting quotes from three or more providers to compare coverage and pricing. Compare the coverage types, limits, and deductibles of multiple carriers to determine the one that offers the lowest rates. This way, you can get an idea of which company has the best price for your coverage.
You can purchase the policy if you’re satisfied with the premiums and coverage options offered by the provider. The quoted premium could differ from the final cost, particularly if you have a history of claims or driving that includes tickets and accidents.
Familiarize Yourself With The Type Of Insurance:
To know what type of car insurance you need, you should first understand the different types of insurance available. The following are some of the basic components of auto insurance policies:
- Liability Insurance. This covers damage to other’s property, such as if you strike another vehicle or someone’s fence. This insurance also covers injuries that you may cause in an accident and legal costs should you be sued. You can either choose to pay the minimum amount required by your state to drive legally or you can choose a higher amount. Damage to your car isn’t covered by liability insurance.
- Collision Coverage. This insurance pays for damages to your vehicle in the event of an accident regardless of who is at fault. It also covers damage caused if you strike another object such as a guardrail. This coverage is optional unless you are financing your vehicle.
- Comprehensive Coverage. This optional coverage protects your vehicle, but it also comes with a small deductible. Comprehensive insurance covers theft, damage, and vandalism due to hail, flooding, and other natural disasters. It also pays for animal strikes.
- Additional Coverage. You may be required or offered to purchase additional coverage, such as personal injury protection and uninsured driver coverage.
Final Thoughts:
Owning a car is often associated with a sense of freedom but it also comes with a lot of responsibility. And obtaining car insurance is one of those responsibilities. With a little bit of preparation and these insurance tips in mind, you can get the right car insurance policy at a price point you can afford.