First Time Auto Insurance – Good2go insurance

first time auto insurance

In recent years due to the recession and lack of jobs, many parents have been helping their kids pay the bills and stay at home nearly until their children’s hair turns gray. As a result, many young adults have never purchased automobile insurance and are totally clueless how to get a quality policy. Getting first time auto insurance doesn’t have to be an intimidating experience if you learn some important tips.

Get the coverage you need and can afford

Car insurance is something all of us never want to use but becomes so important after a traumatic accident. When you buy car insurance for the first time, you need to think carefully about the coverage amounts you need so you are adequately protected. There are a few basic guidelines you can go by when selecting coverage.

1. What kind of car you have or plan on purchasing affects rates and coverage.
Generally speaking, the more expensive your car is and the more you have invested in it, the more coverage you need to get. This might seem like common sense, but your policy limits should cover the replacement cost of your vehicle.

You should also buy collision insurance if you have a vehicle worth roughly $7,000 or more, so it will be fixed or replaced in the event an accident occurs. If you are about to lease a vehicle or buy a new car with an auto loan, the lending institution will require you to get collision insurance. Your lender will require solid protection to protect the value of the vehicle, in the case it is damaged or totaled in a crash.

On the other end of the spectrum. If you have a car, that is worth a couple thousand, consider getting liability only auto insurance and drive with caution, so you never need to make a claim. You can even stick the money you’ll save on more expensive insurance in the bank or stocks and watch it grow. If you are in an accident and your $2,000 car it totaled, you will have the money already saved up, and you can shop for another vehicle without even waiting for a claim check.

2. What are your net worth and liquid assets.
The old saying goes, “more money – more problems.” If you have substantial assets, your car insurance policy should first and foremost protect those assets as comprehensively as possible. Today, lawyers use sophisticated software to analyze the assets of people they are considering as potential lawsuit targets. If you smash into someone after blowing a stop sign and severely injure another person, you might just get hit with an expensive lawsuit.

The more money you have, the harder injury lawyers will push to get at your hard-earned assets. Some auto injury lawyers have sued drivers who were at fault in crashes for millions of dollars, and often win substantial judgments. You need to ask yourself, in a worst case scenario, will your automobile policy protect you up to the value of your assets. If you have $250,000 in liquid assets, make sure your insurance will cover you up to that amount.

On the other side of things, if you are a young person getting first time car insurance, and have assets that consist of a $1,500 1996 Honda Civic and an old bicycle, then you should get cheaper vehicle coverage that has lower limits. Do not let an insurance broker push you into buying expensive comprehensive insurance because your first year auto insurance will be more than the total value of your car. Often, young drivers who are buying their first car bundle coverage with their parents policy. This is smart because young drivers often cannot afford to buy car insurance on their own, it’s just too expensive.

3. How much can you afford for your deductible
A really easy way to get good coverage at great rates is to raise your deductible to a higher amount. The higher your deductible is; the lower your insurance premium amounts will be. Deductibles are often bought in amounts of $250, $500 and $1,000. If you’re a safe driver with a good driving history, consider getting a $1,000 deductible. Remember to make sure you save up the deductible amount and don’t touch it, just in case you do get into an accident and need to file a claim.

Compare auto insurance rates online

Today, shopping for auto insurance online is almost as easy as ordering a pizza. There are companies like Esurance that were born online and have lower overhead costs and pass those savings along to consumers. Get quotes from both online auto insurers, as well as “old school” carriers that have an agent focus to better compare rates. Chances are you will save about 20% by buying insurance from the online providers but not always. This is why it is important to compare car insurance rates from at least ten quality insurers.

At GoodtoGoInsurance.net we do all the hard work for you. With a quick quote, you can compare up to 10 national insurance rates instantly. It only takes a few minutes, and many customers report savings of $500 or more. Let us show you how easy comparing online insurance rates can.