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17 Mistakes First-Time Car Owners Make When Buying Insurance

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9. Assuming Insurance Cost Is the Same Across All Nearby Companies

First-time buyers sometimes assume that insurance pricing is fairly standardized, similar to how a gallon of gas might cost roughly the same at nearby gas stations. In reality, pricing for the exact same driver and vehicle can vary by hundreds of dollars a year between different companies, making comparison shopping especially valuable for new buyers.

Because new drivers represent a wider range of risk to different insurers, the pricing gap between companies for a first-time buyer is often even larger than it would be for an experienced driver with a long track record.

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Quick tip: Request quotes from at least three different companies, including at least one that specializes in new or young drivers, since pricing approaches for inexperienced drivers vary significantly by insurer.

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