2/20/2023
Since driving an uninsured vehicle is illegal in the United States, you should know how to get an auto insurance.
Although it can be a somewhat tedious process, we will try to guide you so you know what to expect. If it is your first time, we will give you the most precise indications to speed up this process.
How to get a car insurance for the first time?
You may find this task a bit overwhelming at first because you don't know where to start or what you will need. First of all, keep in mind that insurers will charge you more if you lack driving experience. When you're in this situation, you can expect to pay more than $3,000 in your first year.
Beyond the above, taking out a car insurance for the first time requires 3 basic things:
- Gathering your personal and vehicle information.
- Work with an insurance agent or get a quote online.
- Get several prices so you can compare the best options.
When the documentation is ready, you can look for an online platform or a traditional insurer, such as Progressive or Geico, specialized in auto insurance. The suggestion is to get at least 3 to 5 quotes to choose the most convenient one.
As for personal information, you may be asked for:
- Occupation.
- Marital status: single, married, divorced, etc.
- Some type of personal identification, such as SSN or driver's license.
- Current address of your usual residence.
- Education level.
- Driving record and seniority of your driver's license.
- Date of birth.
- Insurance record.
What most affects the final price are the driving record and the state where you reside.
Of the vehicle you are going to insure, you will need:
- Year
- Model
- Manufacturer
- Date of purchase
- Person who signed the registration
- Vehicle Identification Number (VIN)
How much does auto insurance cost in the USA?
It is not difficult to assume that policy rates will change according to the car, driving experience, state regulations and your driving record. In general, a basic coverage can be between $100 and $200 per month.
The more coverages you want to add, the more expensive the car insurance will be, but the safer you will be against any incident, accident or breakdown of your car.
How to get the most appropriate coverage?
It may happen that you exceed the amount of coverage contracted, which increases the cost of your policy. To save on final costs, you should buy what is strictly necessary for your vehicle and for you.
Given the variety of coverages, you must know how to distinguish which ones are useful or not in your state:
| Liability | It is mandatory in all 50 states and premiums are also allocated according to your net worth. |
| Collision | Covers the costs incurred by your vehicle when colliding with an object on the road or when parking. |
| Personal injury protection (PIP) | It is only required in 14 states and you do not need it unless your health insurance does not include auto-related injuries. |
| Comprehensive | Covers damages derived from external factors, such as weather, theft, glass breakage or fire. |
Insurance coverage limits often depend on your net worth, which you can calculate simply: add up all your assets and subtract what you owe.
In the event that this figure does not exceed the minimum requirement in your state and you are trying to get the cheapest policy, our recommendation is to opt for liability coverage.
Factors you should evaluate before get an auto insurance policy
When getting an auto insurance in the United States, it is usual to look for the policy with the best price-value ratio. Although we have already mentioned the amount of coverage, there are other important elements that you should take into account:
- Duration of the policy. Usually, these policies give you coverage from 6 months to one year. However, this varies according to your income and type of vehicle. In some cases, you will have the option to shorten or extend the protection.
- Premiums. Corresponds to the amount of money you have to pay for each coverage you have contracted. As if it were a loan, you pay monthly if you have not paid the full amount.
- Insured amount. Insurance companies have economic limits for their policies. It is an amount that you can negotiate during the contracting process and that could reduce or increase the final cost of the premiums.
- Deductibles. It has to do with the minimum amount you have to pay to receive the contracted benefits and is calculated according to the value of the car. Often, it is a percentage of 5% of the cost of the car.
Do not only look at the price when hiring a car insurance in the United States, there are very cheap insurances that later are a disaster when you need to resort to your policy.
Look for information and compare between several options, reading opinions and reviews that can help you choose an adequate option in price and quality of service.
Español: Cómo contratar un seguro de auto en Estados Unidos