Getting your first auto insurance policy? You’re not alone. Many new drivers or recent arrivals to the U.S. are in the same position.
Obtaining car insurance as a first-time buyer can appear intimidating, but it does not need to be. Understanding which documents you will need and finding the right agent can make the process smooth and less confusing. At Infinity Insurance Agency, Inc. (IIA), an agent can help you find a policy that may meet your needs.
Why do you need car insurance?
There are various legal and personal reasons for needing auto insurance.
- Insurance is required by law in most states. Financial responsibility laws are state statutes that require drivers to provide proof of their ability to pay damages if an accident occurs.
- You can help protect your finances if there is an accident or your car is damaged. Unforeseen expenses like medical bills or vehicle repairs can be costly. Personal auto insurance can help lessen the financial burden.
- You can have reassurance for yourself, others, and your property while on the road.
What you will need before applying
- Valid driver’s license: U.S. driver’s licenses are the standard requirement. But, if you come from outside the country, foreign licenses or identifications like a Matricula Consular may be accepted, such as at IIA.
- Vehicle information: Make, model, year, vehicle identification number.
- Proof of address: Acceptable documents can include a utility bill, bank statement, or lease agreement.
- Driving history report: This official document, also referred to as a Motor Vehicle Record (MVR) details your driving experience with components such as accidents reported, traffic violations, or the status of your license. The agent will get the report for the applicant. Access to the report is typically restricted to the driver, government organizations, or law enforcement.
- Budget: Think about what you can afford to pay monthly and discuss with your IIA insurance agent.
Know what car insurance coverages you might need
Here are usual coverage types:
- Liability: Covers damage to the property and injuries of others.
- Collision: Covers damage to your car from accidents with other vehicles or objects.
- Comprehensive: Covers non-collision damage, such as theft impacting your vehicle, vandalism, falling objects, and animal collisions.
- Full coverage: It is not a single insurance coverage but is a common phrase that refers to a bundle of coverage. It is typically made up of liability (required by most states), collision, and comprehensive coverage altogether. The latter two, while optional, may be required if your car is being financed or leased.
Each state has distinct minimum coverage requirements. For example, California requires drivers to carry at least liability insurance, with specified state minimum requirements. There are also optional add-ons for insurance policies, such as car rental reimbursement and roadside assistance coverage.
In certain cases, you may be required to file an SR-22, also known as a certificate of financial responsibility. It is typically required for individuals involved in serious driving violations and proves that you have the minimum liability auto insurance required in your state.
If you own a commercial vehicle, meaning one used for business purposes, you can also opt for commercial auto insurance. Personal auto insurance often doesn’t cover particular commercial vehicle uses. Commercial auto insurance helps your business if a covered accident occurs. Just like personal auto insurance, you can have collision, liability, and comprehensive coverage. Commercial auto insurance can also be extended to employees and even recent hires.
Don’t worry if you don’t have a perfect driving record
There are policy rates for drivers with less than perfect records, including those with traffic violations or who have experienced accidents.
- Many first-time buyers have a limited or no driving history. That’s okay.
- IIA specializes in helping drivers considered “higher risk” to find a policy that suits their budget.
- You don’t have to figure it out alone, a professional IIA agent can help guide you.
How an IIA agent makes it easier
IIA Spanish bilingual agents are here to support you in every step of the way.
They can:
- Help you understand what coverage makes sense for you
- Walk you through the paperwork, even if you’re new to the U.S.
- Explain to you in your preferred language of Spanish or English
- Help you find coverage that fits your budget, compare quotes, and explore coverage bundles so you can feel confident in being properly insured
Tips to get the best rate
There are steps you can take to help obtain a rate and coverage that is suitable for your budget.
- Maintain a clean driving record
- Bundle with other policies (if available)
- Ask about discounts (for paying your policy in full, having more than one business vehicle for a multi-vehicle discount, using certain payment methods, and others).
Getting your first auto insurance policy doesn’t have to be stressful or confusing. If you’re buying your first insurance policy for your first car, or just moved to the U.S., working with a trusted IIA agent puts you in the driver seat.
Ready to get insured? Call IIA at 1-855-478-3705 to speak to an expert agent and get a free personal and commercial auto insurance quote online or over the phone.