Cars are a big investment, both time and money. Last time we checked, cars cost a pretty penny, and unless you are financially irresponsible, you buy the car with the intent to use it for years, even decades. This is why people do a lot of research while getting a car, making sure it is affordable, trustworthy, and shouldn’t cause more inconvenience than convenience. But what about getting one of the most important components of a car or vehicle; auto insurance or car insurance?
A car or an automobile purchase cannot be a great one unless you get equally great and affordable car insurance. Finding the right insurance plan can be a big hassle, even more than getting the right car. There is a lot of jargon involved, types of insurance, risk, dealerships quotes, etc. So to simplify your insurance buying experience, here are some of the best tips for first-time car insurance buyers. This article will cover everything you need to know about vehicle insurance and how to get the best and most low-cost auto insurance.
Know the Basics
Before we dive into the tips to get the best auto insurance, it is important to have some basic knowledge about what insurance is and what types of insurance you can get, especially for first-time insurance buyers. Whether you are getting your car or one of your parent’s cars, the insurance needs to be renewed. In the most basic terms, there are two types of insurance; one that’s mandatory and the other that’s important.
Liability Coverage/ Liability Insurance
Imagine that you are driving your car and unfortunately you hit someone else’s car. Legally, you are supposed to pay for the other car’s repair. But what if you don’t have that much money? Should the state pay for it? To prevent this, almost every state in the US (except Virginia and New Hampshire) has made it mandatory to get liability coverage that is only for the damage caused by your vehicle to other vehicles, property, or even people.
Collision Coverage
This insurance is for your vehicle. It covers the damages caused by an accident where your car gets damaged. Remember that this is the collision insurance, meaning it will only cover damages caused by accidents caused by collisions.
Comprehensive Insurance
As the name suggests, this covers most of the types of damage such as damage from explosions, fire, animal strike, vandalism, falling objects, etc. Comprehensive insurance protects your vehicle from almost every possible way of damage.
There are a few other types of insurance such as uninsured or underinsured coverage or personal injury protection insurance. We’ll dive into details about those articles in a different article.
7 Tips for First-Time Car Insurance Buyers
Let’s get started with the seven most important tips to get the best vehicle insurance and save yourself from paying more and getting less. There might be a bit of jargon whenever you are looking for insurance, so the best thing would be to prefer the company that lays its cards in front of you. No mumbo jumbo, no complicated processing, and hidden costs that only show up when you need to claim your insurance.
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Compare the Best Prices
You are not bound to get any car insurance out there. There are a lot of companies that offer great car insurance at a much lower price. So as a concerned customer, it is your job to compare different insurances, coverage, and the premium they are asking for. Try getting the most coverage at the lowest price. We know that each option might feel better priced than the previous one, but remember that there is always a cheaper auto coverage option waiting for you.
Takeaway: Compare multiple insurance providers’ prices and offerings and then select the best. Don’t rush, first research.
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Avoid “Stealerships”
Almost every car dealership partners up with insurance companies to sell you their insurance plan, and many people go for their insurance plans as they get it bundled with the car and it involves less hassle. But most of these dealerships charge you a lot more, which includes commissions as well. Getting your insurance will save you a lot of money, so avoid listening to the salesperson’s sweet talk.
Takeaway: We are not saying all dealerships are out there to charge more, but before taking any insurance, check other prices as well.
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Look for Roadside Assistance
Many insurance companies offer roadside assistance and even though it requires paying a little bit more, trust us, it is worth it. You don’t want to be stuck in the middle of the road with a damaged vehicle, all alone and trying to get help. Roadside assistance adds a lot of convenience to your insurance and is worth it.
Takeaway: Spending a little bit extra to get a service that is worth it is recommended.
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Know What Type of Insurance You Want
It’s not a secret, vehicle insurance is expensive, and we are sure that the prices are not going to go down anytime soon. So you must make smart choices. Knowing what type of insurance you should get can save you a lot of money. Liability coverage is mandatory, but you don’t want to spend thousands of dollars on comprehensive insurance for your mom’s beat-up Toyota that has already done a thousand miles. But at the same time, you should get the best insurance for your brand new car.
Takeaway: Insurance is an investment. Make smart decisions.
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Understand All Expenses
You wish that buying a vehicle was just paying the amount on the price tag. In reality, there are a lot of costs that pop up and add up to make the amount that goes out of your pocket astronomically high. When buying a car, remember that the amount you pay for the car will have additional costs, such as insurance premium, maintenance costs, etc. So before you get insurance, factor in all these expenses as well.
Takeaway: Properly calculate the amount you have to pay before buying insurance.
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Ease of Use and Accessibility
When getting vehicle insurance from any company, there are a few things that you need to check before buying one. Make sure how easy it is to use their website. How accessible their services are, and how good their customer service is. Make sure the company is transparent about its services and offers a great online experience and information.
Takeaway: Make sure you do proper background checks of the insurance company and ensure a safe and easy experience. You don’t want to be abandoned in an ocean of inconvenience, so avoid “fishy” insurance companies.
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Range of Insurance
This is perhaps the one factor that many people either ignore or outright are not aware of. Always choose an insurance company that offers a range of different types of insurance. This shows that the company is successful in the industry and can handle claims with its experience. You don’t want to invest your money in a company that has barely just started and is still figuring out how to survive the insurance market.
Takeaway: Choose a well-established insurance company that offers a range of insurances to be secured.
Get Your Documents Together
Getting car insurance is one long process that can take so much time. Don’t let it extend even further by forgetting your documents. We’ll mention the important documents needed to get the auto insurance done, but it is recommended that you ask the insurance company beforehand what documents they require. Generally, the necessary documents are:
- Date of birth of the driver
- Driver’s license of the applicant
- Home address (garage address)
- Vehicle Identification Number of the car (usually the chassis number)
- Any safe-driving courses that the driver has completed.
Takeaway: Get all your documents collected and ready to prevent any delays or issues during processing.
Understand the coverage
Not reading the coverage and seeing what is included in the insurance is just like going and giving away the insurance amount for free, and then throwing your car off a cliff. Always take a look at the terms and conditions, and pay a lot of attention to the coverage that tells what the company will pay you for, and how much. Better yet, ask the company if there are any exceptions, conditions, etc to get a better idea. Generally, you’ll have to pay more if you are young and inexperienced. This is normal for insurance companies to do to mitigate risks.
Takeway: Know everything you need to know before you buy your insurance.
Conclusion
Be a smart driver, both on-road and off-road. Getting your car is just the first step. No matter how great the car can run, you have to get the best insurance at the best price to ensure a safer and smarter investment. Follow the tips above and you are already set to get the best low-cost auto insurance.
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