Getting behind the wheels is exciting, but first-time car buyers need to know a little bit about auto insurance too. Know what type of coverage you need and what you can do to reduce your premium. After all, your insurance payment is a big monthly expense you’ll have to cover if you want to keep driving.

What Type of Coverage You Need

Certain types of coverage are required by law, such as liability insurance and uninsured motorist coverage. There may also be a minimum requirement for personal injury protection, which covers your medical bills for any accident-related injuries. Collision and comprehensive insurance may be optional. Collision damage will cover the car repairs if your vehicle was damaged or totaled in an accident. Comprehensive coverage would pay you for the market value of the car if it were stolen. If your car is financed, your lender will require you to carry both collision and comprehensive coverage.

How to Reduce Your Premium

Your premium is calculated based on different criteria, such as where you live, your age, your driving record, your credit score, and your coverage selection. For new drivers, premiums are usually the highest, because they present the greatest risk to the insurance company, statistically speaking. However, you may get a good student discount, and you can save money by being listed as a driver on your parent’s policy.

To decrease your premium immediately, you can also raise your deductible, lower your coverage options, and pay for six months’ or a year’s worth of auto insurance in advance. However, you must have enough savings to cover your deductible. Also, if you need your car for work and can’t pay for a replacement, you shouldn’t waive collision and comprehensive coverage. In the long run, your premiums will be reduced as you maintain a clean driving record.

We know that shopping for auto insurance can be difficult, and we strive to make the process easy for you. Give the Farmers Insurance Group a call at (417) 926-7900, and our agents can help you select the coverage you need at affordable rates. We also offer motorcycle insurance and health insurance for our Mountain Grove, MO, customers. Visit us online to get a quote.