Buying your first car is exciting. Buying insurance for that first car is usually less exciting, which is exactly why so many first-time car owners rush through the process without fully understanding what they are signing up for. Nobody teaches insurance literacy in school, and most people learn the hard way, often after a claim goes differently than expected or a bill arrives higher than anticipated.
If you are buying your first car insurance policy, whether you are a new driver, someone buying their first car after years of relying on public transportation, or a young adult stepping off a parent’s family policy for the first time, this article is for you. The mistakes below are not signs of carelessness, they are simply the natural result of navigating an unfamiliar system for the very first time without a clear guide to walk you through it.
Here are seventeen common mistakes first-time car owners make when buying insurance, along with practical advice on how to avoid each one.
1. Accepting the First Quote Without Comparing Others
Many first-time buyers assume the first quote they receive is simply “the price” for insurance, without realizing how much prices can vary between companies for the exact same coverage. Always get at least three quotes before making a decision, since first-time buyers in particular often see wide variation in pricing depending on the insurer’s specific approach to rating new drivers.
This is particularly costly for first-time buyers, since new drivers already tend to pay higher premiums, meaning even a small percentage difference between insurers can translate into a meaningful dollar amount over a year.
Quick tip: Ask each insurer for the exact same coverage limits and deductible when comparing, since a lower price sometimes hides a lower level of protection underneath it.