When you get your license, buying a car is probably the next thing on your mind. After all, what’s the point of passing your driving test if you can’t drive to fun places as soon as possible? Thankfully, getting your driver’s license opens up many opportunities for cheap car insurance quotes and plenty of great cars.
The only catch is that owning a car comes with several risks you need to be aware of beforehand. Unless you want to risk having your parents pay for repairs or replace your car after it gets stolen, we recommend reading this post in its entirety so that you know everything there is to know about insuring a car. Whether it be new or used, there are many things that go into insuring any vehicle.
1) How To Get Cheap Car Insurance For Beginners
To get cheap car insurance for beginners, you need to make sure you are aware of the types of coverage available and how much coverage you actually need. One way to get cheap car insurance for beginners is to pay your premium upfront. Most auto insurers offer a discounted rate if you pay your premium in full at the beginning of your policy. If you pay in advance, you are covering the entire year’s worth of premiums at once rather than paying monthly and having to pay a higher rate since you have less equity in your car.
Another way to get cheap car insurance for beginners is to compare different insurance companies. Insurance companies often compete with each other to provide the best rates to prospective clients. Also, be sure to choose an insurance policy that is appropriate for your needs. For example, if you drive a lot, choose a policy that offers a higher amount of liability coverage.
2) Auto Or Collision Insurance
Auto insurance or collision insurance covers damages to your car as a result of an accident. It is important to have this type of coverage in place because, if you cause an accident, you could be held liable for the damages to the other driver’s car. If you are involved in a collision and do not have collision coverage, you will need to pay for the full cost of repairs out of your own pocket. Collision insurance covers the cost of repairs to your car and can help you avoid the burden of paying thousands of dollars out of pocket
We recommend getting collision insurance on any vehicle that is worth less than what you owe on it. If your car is worth $10,000 and you have $15,000 worth of debt on it, you will want to get collision coverage. If your car is worth $10,000, you don’t need collision coverage.
3) Comprehensive Insurance
Comprehensive insurance covers damage to your car that is not a result of an accident. This includes damage from natural disasters, vandalism, and theft. If you want to ensure that your car is fully insured against any damages, you should consider adding comprehensive coverage to your policy.
We recommend only purchasing comprehensive insurance if you have significant equity in your car. If your car is worth less than what you owe on it, comprehensive insurance will not fully cover the cost of repairs.
4) Theft Insurance
If you have a car that is likely to be stolen, you should consider purchasing theft insurance. This type of coverage is usually part of a comprehensive policy. For example, if your car is a model that is known to be stolen often, your insurer might require you to purchase this coverage. Alternatively, if your car has a low resell value, your insurer might also recommend theft insurance. The best way to avoid having to pay for theft insurance is to drive a car that isn’t likely to be stolen. Check the National Insurance Crime Bureau’s annual “Hot Wheels” list to see which cars are most often targeted by thieves. Avoid models that are on this list if you want to avoid paying for theft coverage.
5) Roadside Assistance & Towing Coverage
If you frequently travel in areas that are far from civilization, you may want to consider purchasing roadside assistance and towing coverage. This type of coverage is often included when you purchase a comprehensive or collision policy. If it isn’t, you can purchase it as a standalone policy. We recommend purchasing roadside assistance and towing coverage if you frequently drive in areas that are far from civilization. This coverage can be worth hundreds of dollars, especially if you regularly find yourself in a situation in which you need help with a flat tire or out of gas.