First-Time Car Insurance Buyer's Guide

Key takeaways

• There are several ways you can help lower your car insurance rates as a first-time buyer, such as policy bundling.
• Once you have auto coverage, be sure to get a proof of insurance certificate or card before getting behind the wheel.
• Getting more coverage than your state requires on your auto insurance is usually worth the small additional cost, saving you from financial troubles down the road.

If you're new to buying car insurance, don't worry—it's not as complicated as it seems! Whether you're getting auto insurance for your first car or setting up your own policy, figuring out where to start can seem tricky. The good news is that by understanding a few car insurance buying basics, you can avoid mistakes and select the best car insurance that works best for you.

How to get car insurance for the first time

Getting car insurance for the first time might seem challenging, but with a clear roadmap, it's much simpler than it looks.

The 5 steps to get car insurance:

1. Gather key information.
1. Driver's license
2. Address of where the car will be parked
3. Information on other drivers (if applicable)
4. Vehicle's year, make, model, and VIN
2. Understand basic auto insurance coverages.
1. Liability insurance coverage provides coverage for damage/injury that you cause to others and is required in most states.
2. Collision insurance coverage covers damage to your car if you are in an accident.
3. Comprehensive insurance coverage covers non-collision damage, such as theft, fire, weather-related damage, etc.
4. Uninsured/underinsured motorist (UM/UIM) coverage protects you if you are involved in an accident and the other driver has no insurance or not enough to cover the damage.
5. Personal injury protection (PIP) coverage covers medical expenses if you are involved in an accident—regardless of fault (required in some states).
3. Know how much coverage you need.
1. Check your state's minimum auto insurance requirements.
2. If you're financing or leasing a car, check with your lender as to what they require you to carry. In many cases, you may be required to carry full coverage car insurance.
4. Shop around.
1. Take advantage of online auto insurance comparison tools or work with an insurance agent to secure quotes. Get a quote from a trusted insurance company.
2. Ask about car insurance policy discounts (good student, safe driver, bundling policies, etc.).
3. Consider your budget and risk tolerance. Keep in mind that having more coverage provides you with better protection but a bit more in premiums.
5. Select a policy.
1. Once you've found the right policy, you'll need to make a down payment to make it official.
2. Be sure you get a proof of insurance certificate or card before getting behind the wheel.

What do I need to get car insurance?

When you're buying car insurance for the first time, you'll want to gather certain information that can help the process go as smoothly as possible. In general, what you'll need falls into the following categories.

Personal information

• Your driver's license
• Your date of birth, address, and contact information
• Your driving history (tickets or accidents)
• Your car insurance history (even if you've been on someone else's policy)

Vehicle information

• The year, make and model
• Vehicle identification number (VIN)
• Mileage and date of purchase
• Loan or lease information (if applicable)
• Where the car will be parked

Optional (but helpful) information

• Estimated number of miles the car will be driven
• Proof of good grades (for student discount)
• Certificate of completion (for a good driving discount)

How much does auto insurance cost for first time buyers?

Car insurance for first time buyers will vary depending on your age, location, vehicle type, and the coverage you select.

In 2025, the average cost of full coverage insurance for someone getting car insurance for the first time and who has a good driving record is around $2,149 per year, based on national rates across age groups and coverage levels. Drivers who opt for state minimum insurance requirements should expect to pay around $631 per year.

It's important to note that it is natural to want cheap car insurance as a first time buyer, especially when you are trying to save money. But as the saying goes, you get what you pay for! Once you understand what each part of your auto insurance protects you from, you may realize that spending a bit more is worth the extra financial protection. For example, if your car gets totaled or you hurt someone in an accident, having better auto insurance coverage could save you from having to pay thousands of dollars out of pocket.

If you're on a budget, there are a number of ways to help lower your car insurance rates as a first time buyer. In addition to comparing quotes from auto insurers, you can:

• Ask about discounts such as good student and safe driver
• Increase your auto insurance deductible
• Take a defensive driving course
• Bundle your auto insurance policy with your home or renters coverage

How much coverage do first time auto insurance buyers need?

Every U.S. state requires a basic level of car liability insurance that will cover injuries and property damage you cause to others in the event of an accident. However, these limits are just that—the minimum. In some cases these limits can be too low if you are involved in a serious accident. Can you afford to pay out-of-pocket if your insurance policy's limits don't cover everything? If not, consider a step above minimum liability.

If your car is new, leased, or financed, the dealership will likely require you to carry collision and comprehensive insurance. In some cases, the dealership may also specify the deductible that you must carry. Of course, if you own your car, having full coverage is up to you.

Lastly, depending on the state you live in, you may also need or want personal injury protection (which covers medical expenses if you are involved in an accident, regardless of who is at fault), as well as uninsured/underinsured motorist coverage if the other driver doesn't have enough insurance.

Ready to get car insurance for the first time?

Get a quote for auto insurance online at Liberty Mutual or call for an auto insurance quote, so our representatives can walk you through the process: 844-349-8391