Insurance Tips: Obtaining Coverage On Your First Vehicle

Your first vehicle is likely the first major purchase of your life, perhaps your very first adult decision. Whether you saved up to pay cash for a used vehicle or are financing a new one, buying a car is an immense responsibility.

Purchasing and maintaining car insurance is a significant portion of that responsibility. You must make sure your car is protected and that you can protect yourself in the event of an accident. Figuring out where to begin can seem overwhelming, but when you know how to proceed, obtaining insurance need not intimidate you.

Determine What You Need

Several factors go into establishing the minimum amount and type of insurance you require. For example, if you paid cash for a used car, you likely only need liability coverage, which protects you if you are found at fault in an accident and pays for injuries and damages for the other party involved. If you are financing or leasing a vehicle, you will need full coverage. This includes liability as well as comprehensive and collision coverage on your car.

Decide What You Want

Consider whether you want to supplement the minimum requirements before shopping for insurance. You may want to add medical payments, rental reimbursement or roadside assistance, for example. These add-ons will increase your payment, so moving on to the next item is key.

Define Your Budget

The best, most comprehensive insurance policy is no good if you cannot afford to maintain it. One way to save is to pay for six months or one year of your policy at a time, but if this is not possible, decide how much you can manage on a monthly basis.

Gather Your Information

Before you go online, pick up the phone, or head to an insurance agent's office, make sure you have all the info you will need to provide. Along with your driver's license and basic contact information, you will need to provide the make, model, VIN of your vehicle, how and where you plan to use and park the car, and an approximation of the miles you will drive every week.

Compare Quotes

It is wise to contact multiple insurance agencies before settling on a policy. If you need help choosing a plan, consider talking with an insurance broker, such as one of the experts at Combined Business Group. Make sure you specify the coverage levels you want with each agent so that you can be sure you are evaluating truly comparable policies. Choosing a friendly, reputable agency who will be accessible whenever you need them is essential.