Your First Auto Policy

Your first auto policy is often the most costly one you will purchase, primarily because it will be the beginning of your history as a policyholder. You may have been driving all along and so will have a driving record which will count for something when you negotiate your first teenage automobile insurance policy, but even if you have been listed as un authorized driver on another policyholders insurance, you are now, as far as insurance carriers are concerned, a brand new customer with whom they must now develop an independent relationship.

An insurance agent beginning a relationship with a customer new to the responsibilities of the insurance policy will likely offer some measure of new customer appreciation, especially if the customer specifically requests it. Often, however, the customer doesn't ask. So, ask your insurance agent what packages the company offers to new customers, and it is quite likely that you will get a discount of some measure.

Choosing the Best Policy

If you are about to negotiate your first automobile insurance policy, you would do well to first speak with someone you trust about the requirements, the liabilities, and your various responsibilities as a motorist. Ask also about specific insurance carriers and agents, and invite your trusted friend or family member along to the first appointment with you. You might very well be able to get some additional discount or special offering because of their referral, and the person who refers you will likely also earn some reward.

You will want to choose the policy that fits best into your budget, while also giving you the coverage you need. If your vehicle is financed, your loan company will require that you carry comprehensive, collision, and bodily injury liability coverage to protect their investment in any situation. If you are a very young person or a student with limited funds, it would be a wise choice, in any case.

If your vehicle is an older model, or if it is fully paid for, you could consider applying only third part coverage, which is personal injury liability and also will pay for the repairs or replacement of the other person's vehicle if you are the party at fault. Third party coverage will not repair or replace your vehicle, however. If you are a "green" or new driver, even if your vehicle is an older model, it might also be wise to opt for auto replacement coverage, if only because your lack of driving experience could mean that you will be quite likely to be involved in an accident. This way, if you total your car, you will be paid the full amount that would cost to replace your vehicle.

Another type of coverage that you might want to consider purchasing would be that for towing and labor. If the vehicle is brand new or a late model, this might not be something you will need unless you were involved in an accident, but, again, if the car on which you are purchasing your first insurance policy is an older model, the chances of a mechanical breakdown are higher, so towing might be a service you will have need of once in a while.

Whatever stage you're in when purchasing your first auto policy, it is important to keep in mind that the insurance policy is a legal contract that places some responsibilities on you, the policyholder. If you break the terms of your contract, you will lose coverage. One of the most important responsibilities that you will have will be to make your premium payments on time to avoid loss of coverage.


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