17 Mistakes First-Time Car Owners Make When Buying Insurance

14. Not Understanding How Filing a Claim Could Affect Future Premiums

First-time buyers sometimes file a claim for a very minor incident without realizing how that decision could raise their premium for years afterward, particularly since new drivers often already pay higher rates and have less history to absorb an increase gracefully.

Since new drivers already pay some of the highest premiums on the road, an ill-considered claim early on can compound that cost for several years at exactly the time when a first-time buyer can least afford it.

Quick tip: Before filing a small claim, ask your insurer directly how it would likely affect your premium over the next few years, since many can give you a rough estimate on the spot.