But as the saying goes, “With great power, comes great responsibility.”
If you’re in the process of purchasing your very first set of wheels, not only should you be aware of how to maintain it, but you’ll also need to know what type of insurance is best to cover you in case of an accident.
But for first-time car buyers, knowing what to look for (or even where to start) can be a challenge.
It is crucial to do your research on insurance providers and what they are able to offer as the State of Texas requires every registered car has insurance coverage. Failure to have the right protection in place can lead to severe financial penalties.
Let the Texas online car insurance quote providers at Quick Quality Quotes give you some important information and tips you can use when purchasing car insurance for the first time.
What Is a Car Insurance Policy?
For those who are not familiar with vehicle insurance, it is a form of financial protection against physical damages suffered in a car accident or against liability for any incidents that may take place.
When first searching for an insurance provider, ask yourself, “ What exactly do I need and how much of it?” While the language in an insurance policy can be a bit challenging to fully understand, you’ll want to make sure the following information is stated:
- Who is covered
- What is covered
- Exclusions and limitations
- The date on which the policy becomes effective
- The amount of coverage provided
- Premium cost
How Much Insurance Do I Need?
In Texas, you are only required by law to have liability coverage but the following additional riders should be considered to further protect you and your property should you be involved in an accident:
- Liability Coverage: This covers you in case of an accident where you are at fault and will cover the liabilities and expenses of the other person’s personal and vehicle damages. STATE MINIMUM: $30k of Injury coverage (per person), $60k per accident and $25k of property damage coverage
- Bodily Injury Liability: If you are at fault in an accident, this type of insurance helps to pay for the medical expenses and lost income the other party suffered.
- Property Damage Liability: Will cover the expense of the damages you have caused to the other person’s vehicle.
- Personal Injury Protection (PIP): Will cover you and your passenger’s medical bills, lost wages, and other nonmedical costs if you were injured in an accident (if applicable).
- Uninsured Motorist Bodily Injury/Property Damage: Will cover medical bills, as well as property damage if you were hit by someone that does not have insurance or their policy, does not have enough to cover the damages inflicted.
Keep in mind that purchasing only the minimum requirements will not mean you are fully insured based on your needs. If your coverage is not enough to cover other people’s damages, you may be forced to pay out of pocket.
Factors That Will Affect Your Premium
The factors that insurance companies take into account when determining your premium rate include:
- Driving records
- Credit-based insurance score
- Gender, age, and marital status
- Type of vehicle you drive
- The area in which you currently live
- Your prior insurance coverage
- Previous claims
As a first-time car buyer, finding a good rate can be a bit tricky. But there are some options. One of the best ways to avoid a higher rate is to get insured under a parent’s current existing policy if possible.
Useful Tips When Searching for Insurance
While young adults may not be able to get certain discounts right off the bat, you might be able to claim a few if you are under a parent or guardian’s policy. A few other factors which can lower your insurance premium rate include:
- Having multiple safety features in your vehicle such as airbags, brakes, and a good security system.
- Completing certain driving courses such as a drivers-ed and defensive driving class.
- Having a clean driving record and a solid credit score.