If you have recently purchased your first car, you are likely quite excited and exhilarated. However, one of the most important factors to consider once you have purchased a car is what you are going to do about insurance. There are many different auto insurance services that you can choose from for your vehicle and it can be quite overwhelming to try to figure out what the best option is for yourself and your new car. Learn some of the most important facts you should know about auto insurance so that you can be sure you are getting the right policy and coverage for your needs as a first-time car owner.

Just Getting the Minimum is Legal but a Bad Idea

Nearly every state requires a person that owns a car to carry auto insurance. The state laws also give a minimum amount of coverage that the person is required to maintain in case of an auto accident or other issue. Essentially what this means is that the insurance company will pay for a certain dollar amount to cover damages to the vehicle or vehicles involved in the accident. 

When you carry the minimum coverage on an auto insurance policy, your insurance premium payments (the amount you pay monthly, every three months, or as a one-time lump sum payment) will be lower than for higher coverage amounts. However, there is always a trade-off and that trade-off will come if and when you are in an automobile accident. Lower coverage means higher deductibles and out of pocket costs for you which could mean your finances take a nosedive in the case of an accident.

Make Sure You Shop Around for Policies

Because the prospect of gathering quotes and dealing with multiple insurance companies can seem daunting, you might be tempted to only apply for one auto insurance policy and accept the first offer that you get. However, if you want to be sure that you get the best possible insurance premium rates and the highest coverage for your money, you need to shop around with at least two or three different companies. 

By doing so, you will be able to compare and contrast your different options without committing to one of them first. Once you know your general premium price range and see the best deals available to you, you can decide how much coverage you can afford and which company you wish to purchase your policy from.

These tips will help you get the best possible auto insurance company and policy for yourself and for your first car.