Buying a new car can be exciting, but getting car insurance for the first time can be a little bit scary if you don’t know where to start. If you’re getting car insurance for the first time, here is what you need to know about the policy coverage, terms, and premium.
Know the coverage you need.
Each state sets its own coverage limits on what is required and optional when it comes to car insurance. Your agent can explain the types of insurance coverage available for you, including options such as liability, comprehensive, collision, and uninsured motorist coverage. If you have an unpaid loan on your car, your lender may have specified requirements.
Know what you’re buying.
You may be familiar with some car insurance terms, and others may be new to you. Your agent should walk you through those car insurance policies’ ins and outs. Your agent should explain your premium to you (what you pay each month), your deductible (what you are responsible for paying after an accident), exclusions, and your limitations (what does your car insurance covers and what it does not cover),
Compare insurance quotes.
We recommend contacting multiple companies to determine how much each will charge for coverage when getting car insurance for the first time. After you’ve narrowed down your choices, look at the companies’ complaint records and check with rating agencies for financial analysis.
