Car insurance is more expensive for people buying their first policy. According to insurance comparison site The Zebra , customers who have never had a car insurance policy before can expect to pay between 7% and 12% more for their first policy than customers who are renewing a policy, or who have had insurance consistently for the past six months.
The average driver without any record of car insurance pays about $1,752 annually for coverage, according to The Zebra's 2020 State of Auto Insurance report. However, a driver who has had insurance consistently for the past six months pays about $1,626 per year for coverage.
The Zebra notes that that this doesn't apply in California, where state laws restrict car insurance companies from taking insurance history into consideration. In the other 49 states, however, the average new car owner could save about $126 per year by shopping around for coverage after six months.
Try shopping for car insurance again 6 months after you buy
Unlike many other contracts, you're not locked into your car insurance. You can change car insurance policies anytime, generally without a penalty. Even if your first car insurance policy is a one-year policy, you can still shop around, switch your insurance policy, and save, even if your policy isn't about to expire.
Every insurance company considers your information differently, including your insurance history, driving record, and even credit score and gender in some states. To find the best price, you'll want to compare several different insurance companies' coverage.
To shop for car insurance, get several quotes from car insurance companies in your area. Then, compare your policy quotes. You'll want to pay attention to all of the moving parts of your car insurance, including the number of coverage types included and their limits . The more types of coverage and the higher the limit, the better. Also consider the deductible, or the amount you'll pay out of pocket before your insurance covers damage when you file a claim.
Look for the policy with the most types of coverage and the highest limit, and with a premium and deductible that fits your budget. Then, compare it with your old policy to make sure you'll still have the same amount of coverage or better.
Shopping around for car insurance and gathering quotes shouldn't take more than an hour . It's worth the time it could help you save quite a bit as a first-time car owner.
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