New car and new to insurance?

New car?

Car insurance for the new driver can be very expensive. If you have bought a new car then hopefully you have considered the cost of the insurance. If you are a young male your insurance payment could end up being more then the car payment!

Cars and trucks are looked at in a number of ways by the insurance companies. These companies will sell you a policy either through a broker, an agent, direct writer or online. It is in your best interest to do some background work before you plunge into the purchase of a vehicle.

Get insurance quotes

It wouldn't hurt to call a couple of agencies to see what kind of pricing you will get for different vehicles. Be aware that there is a limit to the amount of quotes an agent or broker is prepared to do. This is especially true if you are brand new as you might just be "kicking tires" and not serious about using that agency's services.

If the vehicle you have purchased is an older unit then you may be required to provide a satisfactory vehicle inspection. It is a good idea to make this a condition of the sale so all you will have lost is the cost of the inspection. Older vehicles are usually less expensive to insure if you are purchasing some physical damage coverage.

Buy insurance online?

If you go to the online option then be very confident that you have all the correct information when you are answering questions. An answer incorrectly done will result in surprises. Usually the surprises are the price going up, sometimes way up!

Older vehicle?

Most new drivers buy older vehicles. Not all older vehicles are rated alike so again, you want to talk to your agent or broker. Part of what you will talk about is the amount of insurance your buy. There are different limits for Public Liability and Property damage (PLPD). You may choose to buy Collision and Upset or you may determine to drive at your own risk for your vehicle's repairs. Almost everyone will buy Comprehensive or Specified Perils. This is for the fire, theft and claims that are usually out of your control.

Insurance choices

Choice is an important part of vehicle insurance. You choose to complete driver training when you become a driver. This affects insurance rates. Driver training helps to reduce accidents. If you have less car crashes you have less claims. Less claims means less money out of your pocket for insurance payments. So the rule is that if you make good choices you should see insurance rates stay within your budget.

Insurance choices include whether or not you lend out your vehicle, drive in a safe manner, do the required maintenance to an older vehicle or even pay your premiums on time. All of these can have a long-term affect on the rates you will pay and the way you appear to the insurance underwriter. Take control of your insurance by thinking about the consequences of your choices.