17 Mistakes First-Time Car Owners Make When Buying Insurance

3. Choosing the Minimum Coverage Simply Because It’s Cheapest

Minimum liability limits are often set well below what a serious accident actually costs. First-time buyers, especially those on a tight budget, frequently choose the legal minimum without realizing how quickly a serious accident could exceed those limits, leaving them personally responsible for the difference.

This mistake carries outsized risk for a first-time buyer specifically, since a new driver’s limited savings could be entirely wiped out by a lawsuit stemming from an accident that exceeds their minimum liability limits.

Quick tip: If budget is the main concern, ask about raising your deductible instead of lowering your liability limits, since this preserves meaningful protection while still reducing your monthly cost.