What to Know When Buying Car Insurance for the First Time
Buying car insurance is something every person has to do at some point, but that doesn’t make it a simple or intuitive process. When it comes to getting the right insurance for the right price, a little research can go a long way. Here’s how to make sure your insurance search goes smoothly.
Whether you’re buying a new car or simply changing insurance policies from your parent’s insurance to your own, buying car insurance for the first time can feel like a daunting task. What’s the best policy? What’s a fair price? What car insurance company should you work with? One thing is for certain when buying car insurance for the first time—questions abound.
Yet, with just a little information, you’ll feel confident in making a good decision about what car insurance you should buy. Amigo Insurance knows that an informed decision is an easy decision. Here’s what you need to know:
What Kind of Coverage Do You Need?
When it comes to buying car insurance for the first time, you might be surprised that this process has quite a few more options and conditions than you’d expect. Factors such as where you live, whether your car is purchased or leased, and your state’s insurance laws will all influence what kind of insurance coverage you’ll need to purchase.
While purchasing car insurance is mandatory in every state, the kind of insurance you’ll need varies by state. For instance, every state except for Florida requires bodily injury liability insurance. When it comes to property damage liability, every state as well as Washington, D.C. mandates this kind of coverage.
Another kind of insurance your state may require is uninsured/underinsured motorist insurance. In fewer instances, some states will mandate that drivers purchase personal injury protection insurance.
Questions to Ask When Purchasing Your First Car Insurance Policy
If you’re finding it hard to keep up with the different kinds of coverage available, don’t worry, that’s where insurance specialists come in. At Amigo Insurance, we can answer your insurance questions and help you find the right coverage for you. When shopping for your first policy, consider asking the following questions:
- What kind of coverage am I required to carry?
Your insurance specialist can help you find out which insurance you must purchase to meet legal requirements and which policy may offer more benefits and coverage as a bonus.
- What are the details of my policy?
Once you’ve found a policy that fits your needs, you can request that your insurance specialist explain all the details. You’ll want to make sure that you’re clear on certain terms, such as how much you’re expected to pay for your policy each month (this is called a premium), what insurance does and does not cover, as well as the amount you’re expected to pay out before your insurance covers any damage (this is called a deductible).
- Do you offer any discounts?
Ask and ye shall receive—never forget to ask about discounts! Many insurance companies offer a range of discounts. At Amigo Insurance, we’re always willing to work with our customers to see what discount they’re eligible for. Some discounts that are commonly offered by insurance companies are for a clean driving record with no moving infractions or at-fault accidents within a three year period, being a student with good grades, taking driver education courses, and being a minimal driver who uses their car infrequently, such as being a student away at school without their car.
What Documents Do You Need to Get Car Insurance?
Purchasing car insurance requires quite a bit of paper. Whether it’s your contract or your initial application, expect to get up close and personal with paper. The most important paperwork is what you’ll need to obtain insurance. To finalize your insurance policy, be mindful that you’ll likely need all or some of the following:
- Bank account information
- A driver’s license
- Vehicle details, such as the type of car and year, as well as the VIN number
- Loan information
How to Get Started with Getting Your New Car Insurance
Getting car insurance is one of those tasks that is better done sooner rather than later. The more time you give yourself, the more you have a chance to find a great policy for a great price.
Be sure to use this guide when buying car insurance for the first time to make sure you get what you need and what you want, too. If you’re ready to start your insurance search, head over to Amigo Insurance, where we’ll help you every step of the way. Buying car insurance for the first time might feel challenging, but with Amigo Insurance, you’ll feel like it’s as easy as 1-2-3. Contact us today or chat with us online!