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How to Find the Best Auto Insurance for First-Time Car Buyers

Milad Hassibi April 11, 2018

Although you may have never been in an accident, basic auto insurance coverage is required by almost every state.

Although the minimum amounts and requirements can vary from state to state, you are required to have coverage when driving a vehicle on open public roads.

If you are looking to finance your new car, the cost of car insurance should also be a factor in your budget.

A common mistake made by first-time car buyers is purchasing an inexpensive car only to shortly realize that the insurance payments can be more than the auto loan payments themselves!

Are You Ready?

If you are in the market for a new car, you need to ensure that you are ready to purchase the right insurance policy for your needs.

The goal is to find the best deal on insurance possible with just the right amount of coverage needed for your driving habits.

Although nobody enjoys paying for insurance every month, having to pay out of pocket for a minor Woman searching for an auto insurance policyaccident or worse can bring financial havoc into your life.

In some instances, minimal coverage will not cover the total cost of the accident and the damages that result from it.

This is where insurance companies come in with a multitude of coverage options available.

As an example, comprehensive coverage is not legally required by any state.

However, many drivers choose to purchase these options as an add-on to their base policy.

Some other popular forms of coverage include glass insurance, uninsured motorists, and more.

Do the Math

Before you browse all the insurance options and packages available to you, you need to calculate how much you can afford to pay on a monthly basis.

There are certain variables that can come into play when you are getting your insurance quotes.

As an example, consumers under 25 years old often pay more for insurance due to the higher likelihood of them being involved in an accident.

In some states, consumers with poor credit scores often get jabbed with higher premiums as well.

To find the best auto policy that meets your needs and budget, follow the tips below:

  • Sit down and find out the minimum insurance coverages required by your state. This information is readily available online.
  • Shop around for multiple quotes from various providers. Do not just settle and jump on the first quote your given. Insurance sales reps are commission based and will work to try and obtain the most beneficiary policy for them at your expense
  • Ask insurance providers if they offer any discounts. Many providers will reduce your insurance premium if you are a good student or if you have a clean driving record. Some insurance companies also offer devices that can track your driving habits in order to help lower your rates.
  • Lower credit scores can mean more expensive coverage. Try to take some steps to improve your credit before you apply.
  • Are you using the car for business? If so, your auto insurance could be tax deductible.

In some cases, some providers will only provide minimum legal coverage due to a poor driving record, or even your credit score.

You must be cautious while you drive during this time. After you develop a history of good driving skills and lower credit risk, you may contact your provider to increase your insurance coverage.

Final Note

If you are struggling to find a car loan with bad credit, CrediReady offers one of the largest databases that connects dealerships, lenders, and buyers in all credit situations. Take a few moments to fill out our free and confidential loan search form online and we will match you with a dealership in your local area that can meet your auto financing needs.

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