When you buy your first car, you need to be sure not to get so caught up in the excitement of car ownership that you forget to get your insurance properly organized. There is a lot of information available about auto insurance, and it can get a little confusing, and there are a few important things to keep in mind for when you speak with your agent.
• What can you afford overall? Remember, buying a new car means you’ll probably pay more as you’ll need to have a comprehensive policy, while a second hand car could mean you only need to think about fire and theft as the premiums for a comprehensive policy may be more than you can afford or can justify paying, given the lower replacement cost of the vehicle.
• Don’t forget to get auto insurance in case you’re hit by an uninsured driver. While you may not be at fault in an accident, if the other driver doesn’t have insurance, you may have to come up with the funds for repairs to your vehicle.
• Your age and driving experience can impact your insurance costs – be sure to ask your agent about possible discounts to offset the higher premiums.
Your best resource is your insurance agent. Make sure you ask lots of questions so that you fully understand your policy and what your responsibilities are as a policyholder. Take the time to read through your policy documents too.