In's and Out's of Choosing Car Insurance

Being a first time car insurance buyer can leave you feeling overwhelmed. With so many options to choose from, there is a good chance you will end up paying too if you are not a savvy shopper. Below you will find some helpful advice about buying car insurance and finding the best deals available.

Car Insurance For Loved Ones

The best way to shelter a new teenage driver from sky-high insurance costs is to get them into a collective policy situation. Usually, this means adding them to a family insurance plan as an additional driver. However, first time drivers who don’t have access to this kind of situation can also look for new auto insurance cooperatives or co-ops that may exist in their areas.

First Time Driver Incentive Plans

Some of today’s big auto insurance companies see that first time drivers are struggling to afford the costs of getting on the road. That’s why some of them are now offering discounts based on driver’s education, or even on regular education. These kinds of community involvement partnerships can include “good student auto insurance discounts,” where getting good grades in school can contribute to lower policy premiums. Look for these to get a helping hand for new drivers.

Rates Vary By Vehicle

It’s helpful to look at how insurance companies rate specific vehicles. A cursory glance at specific vehicle risk ratings will reveal that newer, more attractive vehicles come with their own additional insurance cost. Auto insurance companies use ratings from third parties, such as the Insurance Services Office (ISO). These third party estimators use statistics about desirability, theft, safety and value to come up with a risk rating for a car or truck. What all of this means is that your old car, according to how reliable it is, can represent the best value for helping a first time driver avoid high insurance costs. It also means that buying your new teenage driver the latest and best vehicle model can come with exorbitant hidden costs.

Avoiding Risk

The wisest first time drivers know that they need to be especially careful on the road for the first few years, in order to build up a healthy driving record. These individuals understand that any DWI/DUI convictions, speeding tickets, underage drinking charges, or any other similar liabilities can result in steep auto insurance policy payments, which will stick to them for many years. In addition to safe driving practices, young drivers may be able to secure temporarily lower rates by negotiating auto insurance products such as pay as you drive insurance, where the mileage that a driver may use a given time period is limited.

Figuring Out How Much Insurance Coverage You Need

The minimum insurance required differs from state to state, but in general you have to purchase at least basic liability coverage. Liability covers things such as bodily injury, property damage, and uninsured motorists. Depending on your budget, it may also be wise to purchase other forms of insurance. Collision insurance covers damage done to your vehicle in the event of an accident, and may be a smart idea if you are an inexperienced driver. Depending on where you live, it may also be smart to purchase comprehensive insurance, which covers your vehicle against things like natural disasters or vandalism. Also, if you don’t have health insurance, you may want to consider having medical payments included in your coverage.