, any damage your vehicle takes as a result of a non-collision-related event is covered. This includes vandalism, theft, and severe weather. This type of coverage is available as a part of a full coverage policy.
covers medical expenses after a car accident for both you and your passengers. It’ll also cover lost wages, childcare expenses, and funeral costs. It is generally mandated in no-fault states.
Keep in mind: Different states have different limits in place for their minimum car insurance policies. Make sure to check your state regulations before purchasing a car insurance policy.
While a minimum coverage policy is cheaper, full coverage may be better
Compared to a minimum coverage option, which only covers medical expenses and damages for others, a full coverage policy will protect you, your passengers, and your vehicle. In addition, you’ll also become eligible for car insurance add-ons, such as
A general rule that I recommend is to carry enough coverage to protect your current and future assets—at least $100,000/$300,000 of liability coverage is recommended, but you may need more coverage depending on your financial situation.
can walk you through the process step-by-step, starting with profile creation.
From there, you can fill out your vehicle information and coverage options to help you find tailored rates.
Step 3. Finalize your auto insurance policy
If you have a vehicle and are ready to get driving, you can reach out to your desired provider directly and speak to an insurance agent to finalize your new policy—or you can schedule your policy start date with Jerry or opt to begin your insurance coverage the same day.
Buying car insurance from a dealership may seem easier, but ultimately, you’ll be left with limited options and potentially higher premiums. To get personalized car insurance that meet your coverage needs, reach out to different insurance providers, or use an auto insurance broker.
. It will include things like your name, address, other drivers under your policy, the name of your insurance provider, your coverage period, and your policy number.
Make sure to always have your proof of insurance on you: If you’re pulled over and do not have proof of insurance, you can face hefty fines and charges. Not all states accept digital ID cards, so it’s best to confirm with your local DMV or insurer on which option you need to carry.
First-time buyers have higher car insurance rates—here’s why
Currently, a full coverage option costs new drivers an average of $4,202 per year. New drivers tend to pay higher auto insurance rates compared to more senior motorists mainly due to their lack of experience behind the wheel. Other contributing factors include your age, driving history, credit score, and vehicle type.
The best insurance companies for first-time buyers
Here are a few of the best insurance companies for new drivers with some of the lowest rates:
Progressive
Overall rating: 4.2/5
Cost rating: 3.79/5
Customer service rating: 4.2/5
“This was my first car insurance, and their prices are great. Their customer service is always helpful, paying my bill is super easy and quick.” (5 star review - Annie)
Dairyland
Overall rating: 4.71/5
Cost rating: 4.54/5
Customer service rating: 4.68/5
“I was in need of car insurance and Dairyland was quick and easy and affordable, I was covered the same day which was awesome” (5 star review - Lisa)
National General
Overall rating: 4.8/5
Cost rating: 4.75/5
Customer service rating: 4.77/5
“Great experience with National General. I was able to get cheap and affordable insurance. Would recommend 10/10” (5 star review - Malcom)
Methodology
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.
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3 ways to continue to save on your new insurance policy
Just because you’ve signed a new policy, it doesn’t mean you can’t keep saving money. Here are a few suggestions to continue to help you lower your costs, even after buying insurance:
Compare prices from different providers: Consistently shopping for car insurance can help you spot discounts and potential savings opportunities you weren’t even aware of. You can change providers at any time, so it’s always best to keep an eye on the competition.
Take advantage of discounts: Several insurers provide car insurance discounts for different driver profiles. Companies like Progressive offer loyalty and multi-policy discounts, whereas others like State Farm, supply good driver and good student savings.
Bundle your services: If you live on your own and either rent or own a home, you can save money by bundling your renters insurance or homeowners insurance with your car insurance.
FAQs
What type of car insurance is the best for a first-time buyer?
A full coverage policy is often the best choice for car insurance, whether you’re a new driver or a seasoned one. Not only does a full coverage option provide you with additional protection, but it can also help you meet other insurance needs through add-ons, like
Generally, a state minimum policy is the cheapest coverage option. Currently, motorists in the US pay an average of $1,526 annually for a minimum coverage insurance plan, compared to $2,264 for full coverage.
What should you consider when buying car insurance for the first time?
When buying car insurance for the first time, you should consider things like your specific insurance needs, your budget, available insurance products, and the rates from various providers.
Can you buy car insurance from the car dealership?
Yes, you can often buy car insurance directly from the dealership—but tread carefully. When you buy from a dealership, you’re likely to pay increased rates and you lose your ability to tailor your coverage to your needs.
Do you need to have car insurance before you get your car?
If you purchase directly from a dealership, you will be required to have a full coverage policy in place before you can drive off with it. If you purchase from a private seller, this may not be required—but it’s still wise to invest in a policy beforehand to avoid getting caught
What company usually has the best insurance rate for new drivers?
Companies like National General, Safeco, and Dairyland are some of the cheapest car insurance providers for new drivers.
Should first-time buyers get full coverage insurance?
Yes. As a high-risk cohort, new drivers should consider a full coverage policy that will protect them and their passengers in the event of an accident.
What are the best add-on coverage options?
If you’re looking to add more protection to your policy, coverage options such as gap coverage, roadside assistance, and
Not necessarily. If you are a student or teen driver, you can opt to be included in your parent’s policy. Some providers will offer discounted rates for students, but young drivers with their own policy will face higher average rates.
