Car insurance for the first time? Keep 5 things in mind!

Anyone who is buying car insurance for the first time needs to pay extra attention when making the purchase.

As not much is known about this protection or how it works, it is quite common for new policyholders to end up making some mistakes.

However, they only realize that they made a wrong choice when they need to contact the insurance company or pay attention to the amount to be paid.

To avoid falling into traps and not regret it later, first of all check with SUSEP whether the broker and insurer are accredited and offer insurance for your car.

Once this is done, you will have more security to continue with the purchase. If you don't want to have a headache, check out the tips to follow when purchasing car insurance for the first time.

Image: Getty

Advertisement

Buying car insurance for the first time

Even though I have already researched a lot on the subject, any tip is always welcome and it was with this aim that we prepared this article. See what to do to get good insurance at a fair price.

1 – Familiarize yourself with the terms

The terms used by insurance companies need to be well understood so that you know what your policy says.

A tip is to ask your broker whenever you don't understand something, but we've separated some of them so you can get to know them.

• Insured: It will be you, the person who takes out the insurance.
• Coverages: These are the protections available to your vehicle, which you can choose when signing up, for example, theft, theft, collision and window protection.
• Award: is the amount paid for insurance. It will ensure that you have access to the contracted services.
• Franchise: It is an amount paid every time the insurance is activated, it would be a type of participation by the insured so that the repair of the vehicle is provided.

Were you in doubt? Look how cool this insurance dictionary is.

2 – Compare the proposals

Before taking out insurance, you need to quote a price and this must be done with reliable insurers.

Analyze what each one offers, the amounts charged and the services you will have with each one. If necessary, carry out new simulations changing coverage until you find a policy that meets your needs.

3 – Understand the policy

Depending on the coverage contracted, you will have a current policy, which may include coverage only for your vehicle or for third parties.

If you only have coverage for your own car, the insurance company will repair it if there is an accident, however, you will have to pay the costs for the other vehicle if it was responsible for the damage.

If you have third-party coverage, the insurer will pay for the damage to other vehicles involved in the accident caused by you.

Take a good look at what is being purchased to correctly contact your insurance company and have your coverage covered.

4 – Pay in cash

Paying the insurance amount upfront may seem a bit financially burdensome, but it is the best way to save.

If you have money saved, this is the time to use it. In addition to getting a lower premium value, you won't have to worry about the installments.

Another great advantage is that if an accident occurs, you will not need to see the installment plus the deductible amount accumulate to be paid.

5 – Always keep your insurance up to date

When you purchase car insurance for the first time, you will receive all the information corresponding to that moment, but as time passes, they may change.

If you move house, get married or have any other change that could influence the price of insurance, inform your insurer so as not to lose coverage.

When renewing the policy, always do so before expiration to avoid losing the bonuses that guarantee discounts.

Another important point is to review the information and coverage at the time of renewal. If your needs have changed over time, do not hesitate to change the coverage contracted.

Now you can take out car insurance for the first time and have peace of mind about what you are buying and how it works.

Take the opportunity to get quotes online and find out what is available for your vehicle.