The very complicated and ever-changing world of auto insurance policies can make it difficult for a seasoned buyer to make the right choice. For a first-time buyer, buying the right car insurance without any preparation is impossible. 

If you are trying to find your first car insurance policy, no need to panic, start by obtaining multiple car insurance quotes. Making the right choice that suits your needs the best is easy, once you have the right knowledge about the things to look for, and the things to avoid. 

This article will include all the tips you should know if you are purchasing car insurance for the first time. These tips will help you make the right choice and save a lot of money. Remember that cheap is not always the best, you should always look for the best policy at the most affordable price. Let’s get started. 

Compare Prices Before Buying 

The absolute Holy Grail of all the tips to save money while buying car insurance policies is to compare all the options before making your choice. More options might lead to confusion and even irritation, but remember that the more options you have, the more chances you have of getting great car insurance at an affordable price.

So how do you compare prices? With the power of the internet and the option to get auto insurance quotes within seconds. Almost every major car insurance provider offers instant car insurance quotes, and there are websites where you can compare the prices and the coverage options from multiple companies. 

So get quotes from the most relevant car insurance companies. Just remember that prices depend on the state you are in, so when you are searching for car insurance quotes, mention the state you live in to get the best results. 

For example, if you live in California, then we have made it easy for you to get the best car insurance policies at the most affordable rates. Check here to find the best price on Californian car insurance with great coverage options. Remember to get policies with excellent coverage and at the best prices.

Another important tip is to avoid buying car insurance policies from dealerships. Dealerships will recommend some auto insurance companies they partner with, and it might seem very convenient for you to buy it directly from them without the hassle of doing the research yourself. But avoid it at all costs. 

Dealerships take commissions from these companies and the policies they offer might not be right for you. If you are paying, then you should be the one to make the choice, not the dealerships. Find the best insurance company based on your needs and research.

Ask for Discounts

If you don’t ask for it, you won’t get it. This applies very well to auto insurance discounts. Almost all the car insurance companies at almost every time of the year offer a host of great discount options. But not many people look for it.

From discounts for good students with good GPAs to discounts for defensive driving, people who have served, and other excellent discounts that can help you save anywhere from 5% to as high as 30% on your car insurance rates. Always ask your insurance agent about any available discounts. 

Liability Coverage Limit

Liability insurance has a coverage limit. The coverage limit of any insurance policy is the maximum amount of money the insurance company will pay when you make a claim. If the cost of the car accident exceeds your policy’s coverage limit, you’ll have to pay the extra amount from your pocket. 

Each state has its prescribed minimum coverage limit. This is the minimum amount your liability insurance should be able to pay in a car accident. A mistake many first-time buyers make while buying liability coverage is they keep their coverage limit the same as their state’s minimum coverage limit.

The problem here is that the state’s minimum coverage limits are rarely enough to pay for the entire cost of the accident. This includes the risk of being underinsured and getting sued if you get in a car accident and you are at fault. 

Always keep the coverage limit of your liability policy more than what the state’s minimum coverage limit is. Yes, this will slightly increase the premium rates. But paying a few dollars extra every year is better than paying tens of thousands of dollars from your pockets.

Buy Optional Coverage Only if Necessary

The two most popular optional car insurance coverages are comprehensive and collision coverage. While comprehensive coverage does not cost too much, collision coverage can be one of the most expensive car insurance policies, especially if you have a bad driving record.

Before you buy these two policies, think about the need for these policies. For cars that are old, older than 8 to 10 years old, getting collision coverage makes no sense. You’d be spending a fortune on purchasing the policy. And if you do get in a car accident, you’ll have to pay the deductibles to get the insurance money. 

Is it not better to avoid getting collision insurance for older cars that can be fixed at a much cheaper cost? While the decision of getting this policy is totally up to you, make sure you calculate all the costs that will add up if you choose to buy the policy.

The same is true for comprehensive coverage. For older cars that are kept in a locked, covered garage, comprehensive coverage would not be worth it. Collision and comprehensive policies are only worth it if your car is new, and repairing it yourself would be expensive.

These were the tips to help you make the right choice and save money. Make sure that you get the coverage that suits your requirements. 

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Purchasing car insurance for the first time could be intimidating. Follow these helpful tips to make the right choice to get excellent auto insurance coverage at the best prices.