New Car Owners: How to Find the Right Car Insurance for You

best car insurance

Choosing the best auto insurance can be difficult. Different types of insurance coverage and state laws can add to the confusion. In addition, new drivers frequently face higher insurance premiums than older drivers. This premise is mainly because of the drivers’ lack of experience, as new drivers are at a higher risk of getting into car accidents.

Hopefully, this article can help you find the best car insurance that suits your needs.

6 Common Types of Car Insurance Coverage

There are several forms of car insurance coverage available on the market. Each state also has its own minimum insurance requirements.

1. Liability Coverage

Liability coverage must meet the state’s minimum requirements. Any legal fees or settlements incurred by the insured can be covered by liability insurance policies. Contractual liability and intentional damage are rarely covered.

2. Uninsured and Underinsured Motorist Coverage

In the event of an accident where the other party doesn’t have liability insurance, your medical bills may be covered. These insurance plans may cover auto repairs in some states. Underinsured motorists have auto insurance, but it may not cover their medical bills.

3. Comprehensive Coverage

Having comprehensive coverage may give you some relief from the cost of repair or replacement caused by theft, fire, hail, or vandalism. Most comprehensive coverage insurance plans require a deductible. The deductible is the amount you must pay before your insurer reimburses you.

4. Collision Coverage

Collision coverage protects your vehicle against damage from accidents. You need it if you’re financing a car. After you pay off a car, you should consider dropping collision coverage. This coverage may also be unnecessary if you don’t drive a lot or if you can pay for repairs out of pocket.

5. Medical Payments Coverage

In the event of an accident, this coverage provides for hospitalization, surgeries, X-rays, and other medical expenses. Some states, specifically Maine, New Hampshire, and Pennsylvania, require medical payments coverage for car owners.

6. Personal Injury Protection

PIP, or personal injury protection, is available in only a few states. A PIP policy may assist with paying your medical bills after an accident. You can also receive assistance with other expenses resulting from an injury, such as child care or lost wages.

Factors to Consider When Choosing an Insurance Company

Now that you have an idea of what type of coverage your car will need, it’s time to choose an insurance company. Here are the key factors that you should keep in mind when choosing an insurance provider.

Reputation

When choosing an insurance provider, you should take into account the company’s reputation. Confirm that an insurer is licensed in your state by visiting the website of your state’s insurance division. In addition, the website serves as a guide to review information regarding consumer complaints made against insurance companies.

You can also look at insurance provider reviews and ask friends about their experiences. Doing such research can help you decide which insurance providers are trustworthy.

Types of Coverage Offered

The value of any car insurance provider can be determined by the types of coverage it offers. It’s best to go with an insurance provider that offers a diverse range of coverage options. This way, you don’t have to look for a new provider if you want to try other types of coverage.

Discount Offers

Go with an insurance provider that offers plenty of discounts. Reduced premiums are usually available for car owners with good driving records or those who complete a driver training course. If you are a new driver, make sure to ask about discounts when purchasing insurance coverage.

Network Garage Availability

It’s always wise to check the network of cashless garages offered by the insurance company. The free repairs are available for as long as the policy is valid. This benefit may come in handy for reducing the costs of car repair or maintenance.

Responsiveness and Customer Service

The best insurance companies respond to claims faster, have a more efficient claims process, and have higher settlement amounts. Check the websites of third-party rating providers like J.D. Power and A.M. Best to learn more about the claims process of insurance providers.

Takeaway: Car Insurance is Essential

Buying car insurance is one of the best decisions you can make as a new driver. Make sure to put in the effort to find the best car insurance for your needs. It’s also best to take into consideration the minimum insurance requirements in your state when choosing coverage for your car.

Dylan Miller

I am a Chicago native and regular contributor to "Locar Deals" and "Cars Cache". I have a master's degree in English, am an automobile content creation specialist, and have written professionally for a variety of automotive companies over the past few years. I write on a variety of vehicles, from high-end luxury cars to ten-year-old gas guzzlers and everything in between. And I love sharing valuable car buying tips with consumers from all walks of life.

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