Whether you have just received your driver’s permit or your license has been reinstated, you will need to purchase sufficient auto insurance to legally drive. This may initially be intimidating if you don’t know what to look for or who to contact. We can help you step-by-step through the process as well as give you some tips to ensure you are getting the best auto insurance for your money.

While it’s important to think outside of the box as often as possible, you must remain realistic about some of your expectations regarding auto insurance. It’s definitely a great way to provide coverage for yourself and your vehicle, but it’s not always the instant cure-all that some people wish it to be. Once you know the ins and outs of what auto insurance entails and how it provides coverage, you will be able to make a knowledgeable decision about which options to purchase and how much you should purchase.

Do your homework
Of course homework isn’t fun, but by taking time to do some research you will know you have the best policy for your situation. Things to research are the types of coverage available, the recommended amount of insurance to purchase and the different auto insurance companies in your local area. Our site offers many, many articles on auto insurance that can help give you a better understanding of how to research these things and what to look for.

Choose a company you are comfortable using
It is always wise to shop around when you first begin your search for an auto insurance policy. You can go with whomever has the best price or the company that treats you with the best, or you could decide to choose the insurer your family or friends use out of convenience. Keep in mind though that just because one person has a great or poor experience with a company does not mean that another person will have the same experience.

Know your state’s minimum auto insurance requirements.
This one sounds like a no-brainer, but knowing the minimum auto insurance requirements that have been dictated by the state law before you purchase auto insurance will leave no room for surprises, especially if you were planning on purchasing a smaller amount of insurance. On the other hand, many state’s requirements are often very small and will not cover the expenses involved in a major accident. Some states require only two coverage plans, while others require three or four. You can grasp a better understanding of the coverage plans by reading more about them in our other auto insurance articles.

Your lack of driving experience will make your premium cost more
This is nothing to get too discouraged about, but it’s a fact. Because you have not been driving, you do not have the experience that will help you know how to avoid accidents. Auto insurance companies are sure that drivers with less driving experience are involved in more accidents and file more claims. The insurer does not make as much money off of having you for a client if they are always paying for your accidents. To balance this, they charge these drivers who have a high level of risk a higher premium than an experienced driver. Don’t take it personally; if anything, you can avoid accidents and show your insurer you are a safe driver. By doing this, over time your insurance rate will drop.

The car you drive is a factor in your premium
Auto insurance companies will charge new drivers who drive new, fast, sports cars a much higher premium than a new driver who is driving an older, more modest car. Auto insurers know if you put an inexperienced driver behind the wheel of a fast car, the driver is going to drive it fast. Without more knowledge about driving, that driver is more likely to wreck the car and cause major damage to that car and quite possibly someone else’s property and/or body. This will lead to the insurance company having to pay out a large amount to the other party. Auto insurance companies try to avoid this situation by charging more for faster cars. However, if your car is a few years old, not flashy, and has safety features, you will be charged a fairly cheaper amount to insure it.

There are discounts available if you can qualify for them
Without any need for clipping coupons, you can get discounts on your auto insurance premium when you follow certain rules and qualify. Each auto insurance company may offer slightly different discounts, but they are almost all the same. The good student driver discount is offered to students who receive a certain grade point average (usually a “B” average or better) every semester. If their grade point average drops one semester, the discount is gone. Other discounts include taking a defensive driving course and the accident forgiveness plan.

Keep your record clean
If you are just starting to drive, the best advice would be to keep your record free of tickets and accidents. The longer you drive with a perfect driving record, the cheaper your auto insurance will be. In fact, you may eventually have the cheapest rates around because of your clean record. Avoiding tickets and accidents show the auto insurer you are responsible and drive safe, and you aren’t a worry to them with having such a low level of risk. Low risk equals low rates. So, pay attention to the laws of the land and obey them. Know where cars are in relation to your position as you travel down the road. Keep a safe distance between you and the car ahead of you, and know what is in front of them in case they suddenly stop or swerve.

Driving is a responsibility that should not be taken lightly and all efforts on the new driver’s part should be made. Auto insurance isn’t that much of a scary thing, it’s just a lot of information. Taking time to read through policy information and talking to other trusted people you know will help you through this transition. The only thing you could do wrong is not buy auto insurance and drive recklessly.

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