Tips for first time car insurance buyers

Getting car insurance for the first time on your own can be exciting, but it can also be scary. There's responsibility — deciding what coverage and deductibles you may want and need — and a sense of independence – perhaps as you move from a parent or caregiver's policy to one that's all your own. There's also the potential to make mistakes.

When it comes to auto insurance, there are a variety of factors that can influence coverage and cost. Age, marital status and whether you own or rent a home are just three determining factors. A State Farm Personal Price Plan helps you create an affordable price (just for you).^{footnote 1} Here are questions to ask an agent about coverage and discounts as well as the paperwork you may need to establish your own auto insurance policy.

How to get car insurance for the first time

One of your first steps after picking out a car is getting car insurance in your own name. Here’s a simple guide for how to get car insurance:

1. Gather your documents — you’ll need a valid driver’s license, your vehicle’s details (make, model, year, and vehicle identification number) and banking information. If you’re financing the car, also have your loan information ready.
2. Decide what you need — think about the kind of coverage you may want and need. Are you looking for more modest coverage based on need considering your state’s required coverages, or do you need the protection of comprehensive and/or collision coverage? If you finance your vehicle, the vendor will likely require these coverages.
3. Compare quotes — get quotes from several insurance companies. Many offer online tools or agents who can walk you through the process.
4. Ask about discounts — first time car buyers may qualify for discounts such as good student, safe driver, driver education savings or bundling. Be sure to ask about these options.
5. Purchase your policy — once you’ve chosen a policy, you can usually pay online or in person. You’ll get proof of insurance that you must keep in your car.
6. Review your policy every year — life changes fast, and your car insurance needs might as well. Plan to review your policy at least once a year or after any big life change.

Understanding coverage: what’s available and required?

When it comes to vehicle insurance, most states require certain minimum limits of coverage to help protect you and others. In addition, if you have a loan on your vehicle, your lender may specify insurance requirements, too. There are many types of available coverages:

• Liability coverage — pays for damage/injury to others if you’re at fault in an accident.
• Uninsured motorist coverage — helps protect you if you’re hit by a driver with no insurance.
• Medical Payments coverage — helps pay for medical expenses for you and occupants of your car.
• Collision coverage — helps pay for damage to your car from an accident.
• Comprehensive coverage — covers things such as theft, fire or damage from weather.

Car insurance terms related to your policy

Some auto insurance terms may be familiar to you and others may be new, but your agent will be able to walk you through those insurance ins and outs. Typical terms include:

• Premium — the amount you pay at the interval you select (monthly or semi-annual).
• Deductible — the amount you are responsible to pay after an accident or other covered loss.
• Exclusions and limitations — what insurance does and does not cover.
• Policy start date — the day the insurance takes effect.
• Policy end date — the day the insurance expires.

What to do if you need help

If you have questions, your insurance company’s agent or customer service is there to guide you. Many insurers offer mobile apps to help you access a copy of your insurance policy, report a claim, pay your bill and contact your agent. Make sure to download your insurer’s app and know all the ways to contact your agent whenever you need help.

Possible auto insurance discounts for first time buyers

As a first time insurance buyer, there are often many opportunities to save on car insurance. Your agent can guide you through possible ways to save on your auto insurance, including:

• Good student — insurers provide discounts for students with good grades.
• Safe driver — if you’ve had no accidents or tickets for the past three years, you may qualify.
• Driver training — completing an approved driver’s education course may lower your costs.
• Away at school — if your car stays home while you’re away at college, you might get a discount.
• Usage-based discounts — some insurers offer discounts if you drive safely and track your driving with an app.
• Educational programs — you may get a discount after completing an educational program about safe driving.
• Bundling — if you have renters, homeowners or life insurance, you may save by insuring your car with the same company.^{footnote 2}

Once you've established your policy, schedule an insurance review at least once a year to go over policies, changes and needs. As you age, you may require more, less or different coverage, and you may qualify for additional savings.

Paperwork to have when buying your first car insurance

To establish your own auto insurance, you'll need:

• A valid driver's license
• Bank account information
• Vehicle details, including the VIN number (typically found on the dash near the bottom of the windshield or inside the driver's door), make, model and year
• Loan information if you financed your vehicle

Key reminders for first time car buyers

• Always have insurance before you drive your car.
• Know what coverage your state law (and your lender) requires.
• Understand the terms of your policy.
• Be on the lookout for available discounts.
• Review your insurance every year or after major life changes.

Taking these steps may help you feel more confident when getting car insurance for the first time, making owning your first car a smooth and enjoyable experience.

You can get an auto insurance quote now, or give us a few details and a State Farm® agent will reach out to you.