Buying car insurance for the first time can be a daunting task. When you don’t know how coverage works or what a reasonable price is, you may not get adequate protection and pay more than necessary. Here are a few things to know about car insurance to help navigate a policy purchase. 

A Beginner’s Guide to Car Insurance 

State Requirements 

Almost every state requires drivers to carry a minimum amount of liability coverage to pay for any accidents they cause. Thus, the first step in purchasing car insurance is learning what your financial obligations are under local law. In Alabama, motorists must have insurance to cover $25,000 in bodily injury per person per accident and $25,000 to cover property damage. 

Coverage Options 

In most cases, a state’s minimum requirements for car insurance won’t be enough to cover all the costs associated with an accident. Fortunately,  optional coverage is available to keep you safe from financial loss if your vehicle is damaged or stolen. Some of the most common forms of optional insurance are collision, comprehensive, uninsured/underinsured motorist, personal injury protection, and medical payments. 

How Premiums Are Calculated

Car insurance companies consider various factors when determining how to assess risk and set insurance premium rates. A few of the biggest influences over premium rates include age, gender, marital status, residence location, driving record, type of vehicle being insured, annual mileage, previous claims history, and credit score.

How to Reduce Coverage Costs

Most insurers offer policyholders opportunities to save on coverage. Discounts vary from one provider to the next, but insurers usually offer reduced rates if you’re buying more than one policy or have a car with advanced safety features. Completing a driver’s safety course, having good grades, and agreeing to a higher deductible can also lower rates. Your agent will be able to advise you about which discounts you qualify for.

If you’re ready to start shopping for car insurance, contact Tim Bryan Insurance. As a knowledgeable and experienced State Farm® agent, he can answer any questions you have about your specific coverage needs. Over the years, he has displayed an unwavering commitment to excellence and is proud to provide residents in and around Andalusia, AL, with high-quality insurance products. Call (334) 222-1460 to schedule an appointment, or visit his website to request a quote or start a claim.