How to Get Car Insurance for the First Time: Beginner’s Guide

To get car insurance for the first time, check your state’s required coverage, gather your personal and vehicle details, and compare quotes from multiple insurers. Choose the policy that fits your budget and coverage needs, then purchase it before driving. This ensures you’re fully legal and protected on the road.

Driving legally requires car insurance. In fact, nearly every state mandates at least minimum liability coverage. Car insurance protects you by covering the costs of damage or injuries you cause in an accident, so that you don’t have to pay everything out of pocket. If you owe money on a financed vehicle, your lender will typically insist on full coverage (collision and comprehensive) to protect their investment.

In practice, this means first-time drivers should start by understanding their state’s minimum requirements before shopping for quotes.

Most states require a minimum liability insurance policy. Liability insurance has two parts: bodily injury (BI) and property damage (PD). BI liability pays for medical bills and lost wages for people you injure, while PD covers damage to other vehicles or property.

Liability limits are written as three numbers (for example, 25/50/10), meaning $25,000 per person injured, $50,000 total per accident, and $10,000 for property damage. It’s wise to carry more than the bare minimum: a serious crash can exceed those limits, forcing you to pay the difference.

Important Car Insurance Coverages You May Need

• Collision coverage: pays to repair or replace your vehicle after a crash you cause. This is required if you lease or loan your car, but optional if you own it outright.
• Comprehensive coverage: covers non-collision damage to your car (theft, fire, vandalism, weather, hitting an animal, etc.). Like a collision, it’s often required by lenders.
• Uninsured/Underinsured Motorist (UM/UIM): pays for your injuries (and sometimes damage) if you’re hit by a driver who has no insurance or too little insurance. A few states mandate UM coverage by law.
• Personal Injury Protection (PIP): required in no-fault states. Personal Injury Protection covers medical expenses (and sometimes lost income) for you and your passengers regardless of fault. For example, Florida law requires at least $10,000 PIP per person.
• Gap insurance (if financed): pays the “gap” between what an insurer pays and what you still owe on a loan if your car is totaled.

It’s important to match your coverage to state law and your situation. For example, California currently requires 30/60/15 liability coverage, whereas Texas requires 30/60/25. Florida’s no-fault law mandates $10,000 property-damage liability and $10,000 PIP. New York mandates 25/50/10 liability plus PIP and uninsured motorist coverage.

Each state has its own minimums. (If you live in an extremely remote part of Alaska or New Hampshire, you might qualify to post a bond instead of buying insurance, but in practice, nearly everyone buys a policy.)

Steps to Buying Your First Auto Insurance

Getting insurance for the first time may seem daunting, but it follows a straightforward process.

1. Check your state’s requirements

Start by reviewing the minimum liability (and other) coverage that your state requires. State DMV or insurance department websites list the exact limits. Knowing these numbers (for example, “25/50/10”) helps ensure you meet legal requirements. Also note any special rules: about 20% of states require PIP (no-fault) coverage, and many require uninsured motorist coverage.

In short, every state requires insurance to drive legally, though the minimum amount varies. For instance, New York’s minimum is 25/50/10 plus mandatory PIP, while Texas is 30/60/25, and California is 30/60/15.

2. Decide what coverages you need

At minimum, your policy must include the state’s required BI and PD limits. If you’re leasing or financing your car, you’ll also need collision and comprehensive. Otherwise, you may choose higher liability limits and optional coverages based on your budget and assets. Keep in mind that minimum coverage only financially protects the other driver, not you.

If you can’t afford to pay out-of-pocket for repairs or medical bills after an accident, it’s wise to add extra coverage. Review common add-ons: roadside assistance, rental reimbursement, etc., but focus first on core needs.

3. Gather your information

Before shopping, collect all necessary details. Insurers typically ask for your driving and personal info:

• Driving history: As a new driver you may have no accidents or violations on record, which actually helps lower your rate.
• Vehicle details: Year, make/model, VIN, mileage, and safety features of the car you’ll insure.
• Personal info: Your driver’s license number, date of birth, Social Security number, address, etc.

Your location matters because it affects theft risk and state rules. Having this information ready (especially your car’s VIN and your license) will speed up getting quotes.

4. Shop around and compare quotes

Don’t settle for the first offer. Get quotes from several insurers to find the best rate. Many companies let you quote online, and independent agents or brokers can provide multiple quotes, too. The key is to compare “apples to apples.” Make sure each quote uses the same coverages, limits, and deductibles. This way, you identify the carrier offering the best price for your exact needs.

5. Ask about discounts

Insurers commonly offer discounts that can significantly lower a premium. Typical discounts include: good student, safe driver, anti-theft device, bundling multiple policies, paperless billing, or paying in full. For example, full-time students with good grades often get a discount.

Some companies also reward drivers who complete defensive driving courses. When getting quotes, be sure to inquire about all discount opportunities—you might qualify for several at once.

6. Purchase your policy

Once you select a provider and policy, you’ll finalize the purchase by signing the application and paying the initial premium (often a portion of the annual cost).

Many insurers allow credit card or electronic payments. Once paid, the insurer issues proof of insurance (an insurance card or electronic binder) you can carry in your car. Important: You cannot legally drive until the policy is active.

If you were previously on your parents’ policy, remember to notify them and your insurer when you no longer reside at home. Staying on a parent’s policy can save money, but once you move out or they ask you to cover costs, you’ll need to buy your own policy.

After purchase, keep your policy number and insurer contact info handy. You may want to set up automatic payments or reminders so you don’t miss a renewal. Then you’re ready to hit the road legally and safely.

Special Tips for First-Time Drivers

• Stay on a parent’s policy if possible: If you’re under 18 or just starting out, it’s usually cheaper to remain on a parent’s or guardian’s policy than to get your own separate policy. Not only can the higher limits of the existing policy reduce your rate, but you’ll also benefit from the parent’s driving history and multi-vehicle discount.
• Maintain a clean record: Teens and new drivers typically face higher premiums due to inexperience. In fact, 16-year-olds pay an average of $7,658 per year for insurance, over 3 times the rate of a 30-year-old. As you gain experience, avoid tickets and accidents to keep premiums from skyrocketing. Over time, a few years of safe driving will lower your rates substantially.
• Good student discounts: If you’re a student, many insurers offer a discount (often 10%–25%) for B-average or better grades. If you insure a student on your policy, ask about this.
• Shop around each year: Insurance companies update their rates annually. It pays to get new quotes whenever your policy is up for renewal, especially if your situation changes (moving, buying a new car, etc.).
• Consider usage-based insurance: Some insurers offer programs that lower your rate if you drive safely or less frequently. This can be beneficial for young drivers who can keep a device in their car and demonstrate good driving habits.

In summary, the process for first-time car insurance is: understand your state’s laws, decide on coverage, gather your info, compare quotes, and then purchase a policy. Doing your homework and getting quotes from multiple insurers will help you secure the best rate. In the end, you’ll have the legal protection you need on the road and peace of mind knowing you’re covered.

FAQs

How do I insure my new car?
To insure a new car, gather your personal and vehicle details, choose the coverage you want, compare quotes from multiple insurers, and purchase a policy before driving the vehicle.
Which insurance policy is best for a new car?
The best policy for a new car is usually full coverage, which includes liability, collision, and comprehensive, because it protects your vehicle against accidents, theft, and damage.
How much to insure a first time driver?
First-time drivers often pay higher premiums, typically ranging from $250 to $600 per month, depending on age, location, car type, and driving history.
What is the most basic car insurance plan?
The most basic plan is state-minimum liability insurance, which only covers damage or injuries you cause to others.
What’s the best age to get car insurance?
Rates improve significantly after age 25, but you should get insured as soon as you begin driving to stay legal and protected.