5 tips for purchasing car insurance for your first car

December 11, 2020

Buying your first car is an exciting moment, but it also comes with less exciting responsibilities like insuring it. It can be easy to find the right car insurance for you. Once you have purchased it, you will not need to think about it much and can enjoy your new car.

Shop around

Car insurance premiums vary from insurer to insurer so get a few quotes and compare before choosing a company. If you have home or renter’s insurance you may be able to get a discount by going with the same insurer for your car insurance as well.

Understand your insurance

In Canada, you are legally required to have liability insurance, which covers damage caused to others and/or their property for which you are found to be legally liable. In the event of a loss, you would have to pay anything that exceeds the liability limit of your policy yourself, so it is recommended that you carry more than the minimum insurance.

Accident benefits/bodily injury insurance is also required and covers your medical expenses if you are in a car accident.

You can also buy optional car insurance. Collision insurance covers damage to your car if you are in a collision with another object or vehicle. Comprehensive insurance covers damage to your car that caused by many losses other than a collision. This includes theft, vandalism, and windshield damage, among other things.

Figure out how much and what type of car insurance you need

Think about how much it would cost to replace your car if you were in an accident and how much you can afford to pay for insurance premiums. If your first car is an older car, you might not want to pay for collision and comprehensive coverage. If it is newer, you may want to consider getting these types of coverage. If your new car is financed, your lienholder may require you to purchase collision and comprehensive.

Another thing to consider is your deductible. Your deductible is the amount you pay before damage to your car is covered by your policy. Make sure it is an amount you can afford but one that does not raise your insurance premium so much that it becomes unaffordable.

Keep a clean driving record

Good drivers without tickets or demerits get lower premiums. Chances are, you might have high auto insurance premiums for your first car because you may be young or an inexperienced driver. By keeping a clean driving record your premium will decrease over time.