Talking With Insurance Companies

Getting auto insurance for the first time can feel overwhelming. There are a lot of options to choose from in terms of the amount of coverage you can get and the types of policies that are available. All 50 states in the US require some form of auto insurance. In some states, only liability insurance is required while others have more stringent policy requirements. If you are buying an auto insurance policy for the first time, it's important to look for one that suits your needs and provides ample coverage. Here are three things to consider when getting your first auto insurance policy.  

1. Shopping Around Is Important

Once you have determined how much coverage you require, you will want to shop around and look at different insurance companies before making your decision. Getting multiple insurance quotes will ensure that you get the best policy available for the price. Around 38% of drivers have not shopped around for auto insurance. Drivers who do shop around and look at multiple policies save an average of $416.52 per year on their auto insurance. Not shopping around can mean paying higher premiums than necessary. 

2. Costs Can Vary

It's also important to note that can costs can vary significantly depending on your age, the type of car you drive, your driving record, and even the state you live in. The average cost of car insurance in the US is around $1,426 per year which works out to be $118.63 per month. However, in certain states premiums tend to be much higher. When searching for car insurance, you will want to try to get as much information as possible as to how much insurance policies cost for people who are similar to you in terms of age, state of residence, and driving record.

3. Discounts Are Available

If the cost of auto insurance premiums is higher than you would like or were planning for, the good news is that discounts are available. Asking insurance companies about potential discounts can mean big savings. Many insurance companies offer savings for those who pay their premiums for the year upfront instead of monthly. Drivers with good grades, good driving records, and with cars that have certain safety features may also qualify for significant savings. Even after you have had a policy for a while, it's still a good idea to ask about discounts periodically.

If you are looking for your first auto insurance policy, there are a few things that you should know. First, shopping around is important. Getting multiple quotes can help you find a policy that works with your budget. Costs can also vary significantly from driver to driver. It's important to do thorough research in order to determine what a fair price for your policy would be. If you are looking to save, discounts are available.