buyer, you’ll need to know about types of coverage, deductibles, discounts, comparison shopping, and the most reliable car insurance companies.
How to get a car insurance policy as a first-time buyer
Buying a new car is exciting, but if you’re also buying car insurance for the first time, it can seem daunting—especially with all of the coverage options, discounts, and state regulations involved. But with the right tips to follow, it can be a smooth, easy, and quick process.
What coverage do I need to legally drive?
To legally drive in most states in the US, you need to buy a
you’ll likely hear about when you go to buy your first policy:
Additionally, each state has its own coverage limits in place for their minimum car insurance policies. Most states require limits of $25,000 per person in bodily injury liability, $50,000 per accident in bodily injury liability, and $25,000 per accident in property damage coverage.
Other states, however, may require more or less. Make sure to check your state regulations before purchasing a car insurance policy.
While state minimum coverage is generally the cheapest type of insurance, it may not be your best option. If you cause a serious accident, your liability limits may max out, leaving you on the hook for any remaining damages—and if you can’t pay out of pocket, you could be in danger of being sued by the other parties involved in the accident.
What coverage do I need to financially protect me and my car?
A state minimum policy gives you just enough coverage to get you legally driving on the road—however, it won’t cover any of your own damages if you get into a collision. If you don’t want to stress about paying for repairs or having to buy a new car after an accident, you’ll want to get a
A full coverage policy is a type of car insurance that provides added protection for your vehicle in the event of an accident. It generally includes liability coverage,
. A deductible is a fixed amount that you’re required to pay before your car insurance company will cover a collision or comprehensive claim, and the total amount you pay can either raise or lower your car insurance rates.
Don’t ever increase your deductible to a limit you can’t realistically afford out of pocket, even if you need to lower your car insurance costs. If you can’t pay your deductible costs, you won’t be able to file a claim, so you’ll have to cover your repair costs out-of-pocket.
Can I get car insurance discounts as a first-time buyer?
Most insurance providers offer discounts as a way to help drivers save on premiums—no matter their profile or driving experience. Here are a few of the most popular discounts available among insurers:
Make sure to ask your insurance agent about any discounts you’re interested in to determine whether or not you’re eligible, or if there are other savings opportunities you may be missing.
How do I find the cheapest car insurance policy?
Once you have all the information above organized, you can begin
app. When searching for auto insurance quotes, Jerry can walk you through the process step-by-step, starting with profile creation.
From there, you can fill out your vehicle information and choose your coverage options to help you find tailored rates. The entire process, from searching for quotes to finalizing your policy, takes approximately one to two hours.
When purchasing a new vehicle, it’s important to either schedule your policy start date with Jerry or immediately
Don’t buy auto insurance from the dealership: Buying car insurance from a dealership may seem easier, but your coverage options will be limited and the premiums are usually much higher. To get personalized car insurance that meets your coverage needs, reach out to different insurance providers and compare rates.
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What car insurance companies can I trust?
With so many insurance companies available, you might feel nervous about finding a company that is reliable and trustworthy.
To help you make informed choices when it comes to your policy, Jerry experts conducted one of the largest nationwide surveys, asking over 15,000 policyholders about their experience with their current insurer. From policy cost to customer satisfaction and claims handling, real car insurance buyers rated companies on a 5.0 scale—here are the results:
The Insurance Research Team analyzes insurance products and services to drive insights and help consumers make informed purchase decisions. We analyzed over 25 million car insurance quotes and conducted the largest insurance shopping survey (over 18,000 customers surveyed and 120 carriers reviewed in the past 18 months). We surveyed insurance policyholders for their experience with their insurers in the following areas: (1) insurance cost (2) customer service (3) insurance buying experience (4) insurance renewal experience (5) claim experience. In addition, we asked people what they like about their insurers and what areas in which their insurers could improve.
in the United State is $121 per month, or $1,452 annually. However, these rates can change depending on various factors, such as:
Age/driving experience
Driving record
Vehicle type
Previous insurance history
Other factors that can also impact your premium costs include credit score, homeownership, and marital status, depending on where you live. On top of that, not all insurance agencies
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7M+Cars Garaged
FAQ
What is the best car insurance for first timers?
First-time buyers will benefit from a full coverage car insurance policy with higher liability limits of 50/100/50 or 100/300/100, plus add-on options. Most first-time car insurance buyers can find the best deals with providers such as
Should you get insurance first before buying a car?
You do not necessarily need a policy before buying a car—however, most dealerships will require you to obtain a full coverage option before driving your vehicle off the lot. To ensure all your bases are covered, it’s best to purchase car insurance before securing a new vehicle.
How much is car insurance for new drivers?
On average, new drivers pay $611 per month for a full coverage policy, and $262 per month for the state minimum. Once drivers turn 25, these rates drop to $369 per month and $163 per month respectively—and continue to lower as you age.
What factors affect car insurance rates for first-time buyers?
Your age, driving history, and vehicle type are the most common factors that affect first-time buyers of car insurance. Other factors can include credit history, marital status, homeownership, and more, depending on state regulations.
Meet our experts
Hillary Kobayashi
Hillary Kobayashi is an insurance writer and editor specializing in insurance and finance topics. Hillary’s mission is to use her knowledge and love of education to help car owners better understand how they can save time and money on car ownership. The articles Hillary has published for Jerry span topics from state-specific bill of sale requirements to SR-22 insurance information.
Prior to joining Jerry, Hillary spent over ten years in education at Pacific University and the University of Oregon.
Sarah Gray
Licensed Insurance Agent — Expert Insurance Writer and Editor
Sarah Gray is an insurance writer with nearly a decade of experience in publishing and writing. Sarah specializes in writing articles that educate car owners and buyers on the full scope of car ownership—from shopping for and buying a new car to scrapping one that’s breathed its last and everything in between. Sarah has authored over 1,500 articles for Jerry on topics ranging from first-time buyer programs to how to get a salvage title for a totaled car.
Prior to joining Jerry, Sarah was a full-time professor of English literature and composition with multiple academic writing publications.