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Tips for First Time Car Insurance Buyers

If you recently got your driver’s license and now you’re buying your first car, life just became a little more exciting. However, there’s a lot of responsibility for someone behind the wheel of a vehicle. Not only do you need to pay close attention to the rules of the road, but you also have to get insurance. After all, car insurance for new drivers isn’t a luxury but the law.

If you’re looking for first-time driver insurance, it’s important to understand your options. The exact type of coverage you select depends on various factors. With the information provided, you’ll have a much easier time knowing what to look for in new driver insurance.

Liability Insurance

When it comes to cheap car insurance for new drivers, a lot of people choose liability coverage. Liability insurance will help pay for another person’s expenses if you’re involved in an accident and the at-fault driver. For this, you have two different options.

First is bodily liability insurance, which takes care of medical bills incurred by the other party. Second is property damage liability insurance that covers the cost of repairs to the other driver’s vehicle. While this policy is great for protecting yourself against a lawsuit, what it doesn’t do is cover your medical bills or expenses for property damage. Keep in mind that in most states, the law would require you to maintain both kinds of liability coverage.

Especially when looking for cheap car insurance for new drivers, you’ll spend less on premiums with liability insurance than you would with full coverage. However, here’s the deal. If you have a newer automobile or one that’s valued more than a few thousand dollars, you probably don’t want liability coverage.

For instance, if you have a 2015 model car that’s worth an estimated $12,000, you need to protect that asset. Since liability insurance focuses solely on the other party, it’s not a good option. For this scenario, you would want to choose full coverage. On the other hand, if your vehicle is an older model and only valued around $1,500, then liability insurance makes perfect sense.

The other thing you need to consider is that even with first-time driver insurance, if you have a loan on your automobile, you’re mandated to carry full coverage. That way, the lender has protection should you be in an accident. In other words, the policy would protect the lending institution’s interest in the asset.

Varying Costs

Because the cost of a policy varies significantly, it’s imperative that you compare car insurance policies by requesting quotes from several companies. With that, you have the opportunity to see what different insurers offer. That includes the details of a specific type of policy, your options for the deductible, and how much you would pay each month in premiums.

However, several additional factors determine the price of new driver insurance. While these all apply to full coverage, only some relate to liability insurance. For instance, demographics play a role in the cost of automobile insurance. As an example, Michigan has the highest premiums, whereas Maine has the lowest. According to 2019 statistics, the difference between the two states is roughly $1,800 a year.

Your credit score and anti-theft features of your vehicle are also factors. While you’re looking at car insurance for new drivers, meaning you haven’t had much experience behind the wheel, the insurer would also look at your driving habits. That means if you have citations, you’re going to pay a higher premium.

Then there’s age and gender. Although it might not seem fair for young men to pay a lot more for first time driver insurance, they do. The reason is that statistically, these drivers receive more tickets and have more accidents than older male and female drivers. Therefore, if you’re a new driver and under the age of 25, you’re going to spend a lot each month on coverage, even if you opt for liability insurance.

This is why you always want to compare car insurance quotes. Fortunately, you’ll find many insurance companies with excellent policies designed specifically for new drivers. While you can’t control all of these factors, even something like improving your credit score will go a long way in reducing what you pay on car insurance for new drivers.

If you’re purchasing your first car insurance policy, you’ve come to the right place. USAgencies specializes in insuring new drivers and can help you find low-cost car insurance with the coverage you need. Get a fast, free car insurance quote online or over the phone by calling (800) 420-3712.