You might be unsure whether you are buying your first car or simply looking to replace your parents’ car insurance.
The financial aspect of insurance includes determining a fair price and choosing the coverages, limits, and deductibles that will best suit your needs. There’s also the protection side, which includes understanding what ranges are available, filing claims, and much more.
Feeling confident when choosing your first auto insurance policy should be easy. It should also be quick and easy to start. It should also be fair. Root exists because of this.
Here are five tips to help you choose your first car insurance.
1. Find out the minimum requirements for car insurance in your state.
If you’re driving a car, you’re legally required to have car insurance–specifically, liability coverage. If you cause an accident, liability covers your costs for property and other people.
In some states, the minimum legal requirement is a liability. You may need additional coverage in other states. Geico auto insurance quote
Personal Injury Protection (PIP) coverage is required in certain states but optional in others. It all depends on where you live. Check out your state’s car insurance requirements here to get an idea of what coverages you need.
Keep in mind, however, that additional coverage may be required if your vehicle is being financed or leased. To be specific, check with your loan or lease company.
When you buy a policy, The Root app ensures that you meet all state minimum requirements. We walk you through all your coverage options and show you how to add coverages or choose deductibles and limits to affect your rate.
2. You can learn more about the optional coverages so that you can make the right decision for your needs.
When you cause an accident, liability covers property and other people. What about the cost of damages to your vehicle and medical expenses for yourself and your passengers? What about if you are in an accident with someone without insurance? Depending on your situation and needs, there are important coverages that you may want to add.
These are some of the optional coverages that you’ll find:
- Collision
- Comprehensive
- PIP
- MedPay
- UM/UIM
- Rental
Your policy’s cost will increase the more coverage you have. It is a matter of weighing your risk and how much you can afford.
If you don’t have Collision coverage and cause an accident, you will have to pay out of your pocket for the damage to your car. Your insurance will cover collision coverage.
3. Good driving habits could lower your rates.
Traditional insurers base rates mainly on your driving record and demographics. They believe that younger drivers are less competent behind the wheel, and they charge more for it.
Young adults, teens, or less experienced drivers often purchase car insurance for the first time. These categories can lead to very high rates.
Root doesn’t believe in using stereotypes to rate drivers. We believe that better drivers should get better rates. Origin has made it easier for good drivers, even those just starting with insurance, to get better rates.
The root is the No. Source says that your driving record and age are more significant factors than your car insurance rate.
This means that a company may care more about your driving habits than the years you have been driving.
4. Check out reviews about each company offering car insurance.
Reviewing a company can help you decide on a car insurance provider.
Reviewers will give you an idea of how a company treats customers. For example, whether they charge fair rates or make claims processing easy. You can learn a lot about a company’s website. But, it is essential to see what customers have to say about them to get an accurate picture of how they will treat you.
Check for reviews on Google or, if they have an app, their thoughts on Google Play or the App Store.
5. Learn what your auto insurance policy covers
After you have done your research and compared various car insurance companies, you can now choose your policy. It’s essential to understand precisely what is covered and what is not. Discovering that you aren’t covered for something you need is not a good idea.
Contact the company if you have any questions. A customer service representative will walk you through the policy. You can also ask a friend or parent familiar with car insurance to take a look.
When you feel satisfied with the policy, the price, and the coverage, you will know that you have researched and selected the right car insurance.
If you are unhappy with your coverage or wish to add or subtract ranges, you can modify your car insurance later. Let’s say you get married and add your spouse and their vehicle to your policy. Or you decide you don’t need certain coverages anymore and wish to pay less.
You don’t have to make the same decision for your first car insurance policy forever. Do your research now, and you can always modify it later.