Buying Affordable Car Insurance for New Drivers

Once you get your license and a car, nobody has to tell you that you have to get auto insurance coverage. It’s a fact of life, like death and taxes. Since you have never done it before, you may not even know the first step in going about getting a car insurance.

New drivers usually make the mistake of not shopping around before they buy insurance coverage. Sometimes they just ask their parents or friends what kind of coverage they have and which insurance provider to choose. So more often than not they end up getting an insurance plan that is not only unsuitable for them, but more expensive besides.

It’s important for a new car-owner to know why he needs auto insurance in the first place. First, because the law requires it; states have set minimum insurance coverage for all their residents who drive. The purpose is to protect you from financial liability in case you are involved in an accident, causing injury to the other driver and damage to his vehicle. Your insurance provider will be responsible for the damages claimed by the other party. Otherwise, you would have to pay for these yourself, which could take a big chunk out of your savings if not leave you in debt. On top of that, you would be fined hundreds of dollars for the first offense of driving without an insurance coverage.

With car insurance, you also protect yourself from having your license suspended in case of an accident. What if the accident wasn’t your fault? Keep in mind that even if the accident was caused by the other driver, you may lose your license for not having any auto insurance.

Since you’re in the market for auto insurance coverage, you owe it to yourself to learn the basics of auto insurance. While the services provided by auto insurance companies are basically the same, they charge different rates because each offers a different package of services and benefits. This is why you should know exactly what kind of coverage you need so you can keep your cost down.

Many people think that as a new driver, one has to pay high premiums. This is true to some extent, on the theory that new drivers have less experience and are more likely to get into accidents than experienced drivers. Buying just what you need in terms of coverage is your first strategy to get a lower premium. You can also check out what discounts are available to you, or perhaps you can find insurance companies that have some promotional offers. Finally, you can go online to comparison shop to find the best deal you can get in terms of coverage and cost.

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