3 Tips For First Time Auto Insurance Buyers

Posted on: 18 April 2018

Buying auto insurance for the first time can be an intimidating process. You want an insurance policy that's affordable but that also offers enough coverage for your needs. There are also a lot of options available in terms of auto insurance policies. Sifting through these policies and choosing the right one can be a difficult task. If you are purchasing an auto insurance policy for the first time there are a few thing that you should keep in mind. Here are three tips for first time buyers. 

Shop Around

If you are looking for your first auto insurance policy, shopping around can be very helpful. Auto insurance rates can vary greatly from company to company. They can also vary depending on your age and the amount of insurance coverage you require. Getting multiple quotes will give you a better idea on what you should be paying for your policy. There are various ways to get multiple quotes. You can go through an independent insurance agent or broker or get direct quotes from companies online or through an agent. Shopping around can help you save around 47 percent, or $859 a year, on your policy.

Know the Different Types of Coverage

One mistake that first time buyers often make is not knowing the different types of coverage and which types work best for their needs. Most states require a certain amount of liability coverage in order to be road worthy. Liability coverage pays for medical costs and property damage done by your vehicle in the event of an accident. It's important to note that liability insurance does not cover damage to your vehicle. If you want to cover damage done to your vehicle, you will also need to purchase collision coverage. If you want to have your vehicle protected in the event of an accident, natural disaster, theft, or vandalism, then you will want comprehensive coverage.

Know How Much Other People Pay

When shopping around for a policy, it can be useful to know how much other people pay. Having a good idea of what the average auto insurance policy costs can help you find the right one for your budget. The average auto insurance policy in the US costs just over $900. However, in some states the cost is much higher. Age also has a big impact. If you are a teenager, you can expect to pay 3 times as much as a driver in their mid thirties. 

Purchasing an auto insurance policy for the first time can feel overwhelming. When searching for your first policy, it's important to know the difference between coverage types and to shop around for the best possible rates. Knowing the average cost of auto insurance in your state and for your age group can also help you find the best deal. Contact an agency, like Koski & Co, for more info.