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Getting Your First Auto Insurance

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Your First Driver’s License and First Auto Insurance

Getting your first driver’s license and access to a car gives you a real sense of freedom. But freedom also comes with responsibilities. That sweet sense of freedom can be taken away in an instant if you don’t have a car insurance.

Doing your homework on auto insurance might be just as important as preparing for you written license test or comparing cars.

Why do you need an insurance anyway?

The answer is simple: it is the law. All states require you to carry some minimum level of insurance, except for Virginia. Some states require you to carry at least liability insurance coverage to ensure that you can cover the cost of damage to other people or property in the event of an accident. Other states, like Wisconsin, have more flexible proof of financial responsibility requirements.

If you are caught driving without insurance you are likely to be charged penalties and a possible suspension of your license. Check the exact law in your state.

Your Financial Responsibility

The easiest way of satisfying your financial responsibility and get some peace of mind is by buying liability insurance. The insurance is simply a way to protect yourself. It will protect you from financial hardship if something happens. Consider the below:

  • Can you pay if you destroy another car in an accident that was your fault?
  • What would you do if your car was stolen? Would you be able to buy another car if yours is not recovered? What happens to any car loan you had?
  • Can you pay towing and car rental if you total your car?
  • What if your car is damaged or vandalized when parked somewhere?

Compare and Know What You are Buying

There are many reasons for getting an auto insurance. The tricky part is to know what to get.

Just like any other consumer product, you must compare and know what you are buying. You didn’t just pick the first cell phone you laid eyes on, did you?

Rule number one with any shopping is: you don’t want to waste money on something that is plain over-priced, you also don’t want to buy something so cheap that you don’t get the features and service you want.

Talk to your friends and family. Contact a local agent or insurance company. Never be afraid to ask questions. Figure out what you need from an insurance. It might be more complicated than you thought at first. We are all different and we all need different things. Each element of your policy will protect you in a different way. Make sure you know what coverage you need. It’s too late to discover you didn’t have the right coverage or you didn’t understand the different parts, when the accident has already happened.

When it comes to your safety and your money, you have to play it smart. prices. It is a good idea to compare at least a handful of companies when shopping for insurance. Have them quote similar coverage, limits, and deductibles as much as possible. That makes the comparison fair.

Consumer Buying Guide

For some basic ideas on how much you are likely to pay, you can visit The National Association of Insurance Commissioners website. Select your state and you’re taken to the state’s Department of Insurance Website.

Auto Insurance Companies - logos

You are likely to find a consumer buying guide that compares insurance premiums across a range of companies. Enter some basic information about you, where you live, the kind of car you drive, how you use your car and the policy limits you want. You will get a basic sample quote from several insurers. This is also a great place to compare the complaint information of the companies you contact for quotes. Remember, you want the insurance company to be there for you when you need help.

You should also keep in mind that insurance costs more when you are young and have little driving experience. Young adults have an increased likelihood of accidents. As you get older and gain more driving experience,
your premium will go down.

If you have tickets or at-fault accidents, your premium will also be higher. cited. The more tickets and accidents you have, the higher your premium. So drive safely!

Clean Driving Record and Good Credit Score

Keeping a clean driving record and a good credit score will get you the best insurance deals. Another way to save money is by taking larger deductibles and lowering limits. But that also means you might have to take more out of your own pocket once the accident is there.

About Mark
Problem solver. Entrepreneur. Music nerd. Traveler. Twitter: @markheart0 Facebook: Mark Heart


  1. Thank you for a great site. The free tests helped me a lot.

  2. Didn’t know that each state had an insurance website. It was very informative. You should really spread this.

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