Buying a car is a major investment, and like any major purchase, it’s important to do your research before making a decision. One of the things you’ll want to do is get insurance. Here are a few tips on how to get insurance when buying your first car.
Know the Different Types of Car Insurance
There are a few different types of car insurance, and knowing the difference can help you choose the best policy for your needs.
Collision: This type of insurance covers you if you collide with another vehicle, causing damage to both cars. It also covers any passengers in your car.
Comprehensive: This type of insurance covers accidental damage to your car from things like fire, theft, and vandalism. It also covers damage done while driving if you’re involved in an accident.
Default: If you don’t have any other coverage and your car is damaged in an accident, this type of insurance will pay for the damages.
Third-Party Liability: If someone else is at fault for damaging your car, this type of insurance will cover the costs of repairs or replacement.
Compare and Contrast Different Types of Car Insurance
Car insurance is a necessity for many drivers, and it can be expensive to get the right policy. Here are five types of car insurance to help you comparison shop:
1. Full coverage: This type of policy covers you in case of accidents, injuries, and property damage. It usually costs more than other policies, but it’s worth it if you’re worried about every little thing.
2. Limited coverage: This type of policy only covers accidents that occur while you’re driving your car. It may not cover damages to the car itself, or injuries that occur while someone else is driving with your permission.
3. Collision coverage: This type of policy pays for the cost of repairs to your car if it’s involved in a collision. It may also pay for the cost of rental cars while your vehicle is being repaired.
4. Vehicle liability insurance: This policy protects you financially if someone is injured or damages your car while using it without your permission.
5. Uninsured/underinsured motorist coverage: This type of policy helps cover expenses if someone hits your car and then doesn’t have enough money to pay for the damage done.
Make a Decision on Which Coverage to Purchase
When you’re ready to buy your first car, there are a few things to think about: what type of coverage you need, how much it will cost, and which company is best for you. Here’s a look at each option and how much it will cost:
Underinsured Motorist Coverage: This type of insurance protects you from financial losses if you get hit by someone who doesn’t have enough coverage. The premium for this coverage can range from around $100 to $300 per year.
Collision Coverage: This covers damage done to your car when another vehicle hits it. The premium for collision coverage can be as high as $2,000 per year.
Property Damage Coverage: This covers damage done to other people or property when your car is involved in an accident. The premium for property damage coverage typically ranges from around $500 to $2,000 per year.
Uninsured Motorist Coverage: This type of insurance covers financial losses if you get hit by someone who does not have any coverage. The premium for uninsured motorist coverage can be as high as $1,500 per year.
Sign Up for Auto Insurance
If you’re thinking about buying your first car, now is a great time to get auto insurance. Here are 3 ways to sign up for auto insurance:
1. Use a car buying guide.Almost every state has a website or an app that will help you research the best cars and dealerships for your budget.
2. Ask your family or friends if they have any recommendations. Many people know someone with great auto insurance who they can ask for advice.
3. Compare quotes online.There are many websites that offer free auto insurance quotes, including Insure.com, CarInsuranceQuotesExpert.com, and Insure24/7.