First car insurance on your own? We’ve got you covered
First car insurance on your own? We’ve got you covered
There’s a first for everything.
First cell phone bill.
First solo trip to the laundromat.
And, of course, the first time you buy car insurance on your own.
As a significant milestone into adulthood, taking on your first car insurance policy can be a big step in making those day-to-day life decisions.
Unlike that first trip to the laundromat, you don’t have to be on your own for a decision like this. That’s what we’re here for. Our HiRoad team has a how-to guide for purchasing your first car insurance and why having car insurance is important in the first place.
Why car insurance is important for young adults
With all of the choices we make in life, some tend to be a little more complicated than others. Buying your first car insurance policy—doesn’t have to be. Let’s start with basics, whatexactly is Auto insurance?
It’s a financial tool used to provide protection against damage to your car or to help pay for injuries or damages you cause to someone else or their vehicle in the event of an accident. Auto insurance is an agreement where you pay a premium (the cost of protection) and in return, the insurance company agrees to pay for specific types of damage or losses.
What makes insurance unique to you? Many insurers allow you to choose different coverages for your auto insurance, depending on your needs and situation. Coverage requirements will vary based on the state you live in, so it’s important to know what is required.
Take liability coverage—it’s required by law in 49 of the 50 states to have it within your insurance policy. Bodily Injury and Property Damage Liability coverages pay for damages to others if you are legally responsible. If you are sued, it may also pay for your defense and court costs. Medical expenses, pain and suffering, and lost wages are some examples of bodily injury damages. Property damage includes damage to property and its loss of use.
So why is having car insurance important? One word: security.
Insurance helps ensure that you are financially covered in the event of an accident. So as you buy your first car insurance policy, remember it’s worth it. At HiRoad, we believe insurance is a key player in social good. Your insurance policy is there to not only protect you, but protect others.
Buying your first car insurance policy
Now that you know why insurance is important, let’s dive into the process of buying your first car insurance policy. The first thing you need to know is that there are two ways to purchase auto insurance:
Buy online. An online or digital quote (what we offer atHiRoad). In this scenario, you’ll provide basic information about you and your vehicle. From there, you’ll likely be asked additional questions and provide more information. As an FYI, we’ll ask as little as possible—just what we need to be able to provide a policy quote.
Buy from an agent or broker, which is generally in their office or over the phone. In this situation agents and brokers will provide services and advice, even if you don't buy a policy.
Once you decide to purchase a policy, you will have the opportunity to select a payment option that fits your budget, which varies by each insurer. For example, you may have the option to pay the policy term in full, in two payments throughout the policy term (50/50) or in monthly installments. How are we different?
At HiRoad, we’ll charge you an initial monthly payment for your first car insurance policy. Then, as you continue to drive, your monthly price will change based on how well and how much you drive, but you won’t pay more than what you’re quoted. Our quote tells you the max amount you’ll pay—and with your monthly good driving, you can save up to 50%.
First car insurance questions (and answers)
Purchasing car insurance for the first time should be as pain-free as possible. To help lighten the stress of it all, we provided you with answers to common first car insurance questions.
Q: What coverage do I need?
A: All drivers should have liability coverage (bodily injury to others and property damage to others) to cover the damage you could potentially cause to someone else or their car. We suggest you consider coverage for yourself and your passengers, such as Uninsured and Underinsured Motorist or Medical Payments coverages.
Some states require you to buy these coverages or to sign an acknowledgement stating you understand how important they are but choose not to buy them. You also have the option to buy Comprehensive and Collision coverage which pays for damage to your own car.
Q: Why is my insurance more expensive, I was paying less on my parent’s policy?
A: If you’re just starting out, it may cost more to get your own coverage. Your driving experience and age may result in higher rates. Also, some companies offer discounts for having both homeowners and auto insurance, for being a long-term customer, being accident or claim-free for a long time or other factors such as insuring more than one car. Your parents may have been receiving some of these benefits on their policies.
Q: How can I get the cheapest policy?
A: Although affordability is very important when choosing an insurance carrier, the real question you should try and ask yourself is “What kind of coverage do I need?” This will help you better navigate through your coverage selection process a little better. Being underinsured could leave you personally responsible for the difference between the claim amount and what your policy limits will cover.
In a case in which you cause damage that is more than your policy limits, you may be personally responsible for the amount of damages in excess of your policy coverage. It is very important to make sure that you choose coverage that is right for your lifestyle and can fit your budget. Our Customer Care team is more than happy to chat with you and help you select a coverage that best fits your needs.
Get your first car insurance quote with HiRoad®
If you consider yourself to be a mindful person who tries to find ways to make the world a better place—you’re speaking our language. At HiRoad, we reward people like you for making the right choices on the road. As your first car insurance provider, we are committed to rewarding good choices you make on the road. Want to know how? Connect with us today to get good going.
The information in this article was obtained from various sources not associated with HiRoad®. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. HiRoad is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. HiRoad makes no guarantees of results from use of this information.