Car insurance for first-time buyers

Taking responsibility for your own car is a big deal. Whether you’re moving off your parents’ auto insurance or you just got the keys to a new ride, it’s time to make sure you and your vehicle are protected from life’s unexpected surprises.

At American Family Insurance, we believe understanding your coverage is key to feeling confident on the road. After all, car insurance isn’t just a card in your glove box — it’s peace of mind for every mile ahead. Here are some must-know insights to help you navigate your first auto insurance policy.

What does an auto policy include?

Your car insurance policy spells out the details of your coverage, including:

• How much coverage you have
• Who and what is protected
• Any limitations or exclusions
• When your coverage begins and ends
• The amount you pay for coverage (known as your premium)
• How to file a claim

How to choose auto insurance coverage

Every driver’s needs are unique — so, when you shop for car insurance, choose a policy that’s designed to fit yours. A variety of coverages are available to help protect you, your passengers, and your vehicle, as well as other drivers and their property.

Not sure what you need? Your American Family agent can discuss your options with you and help you find the right protections for your situation and budget. To get you started, take a look at some common car insurance coverages to better understand what’s available.

And remember, it’s smart to review your coverage if you have a significant life change — like getting married, starting a family, moving, buying a new car, or retiring. Big moments are a great time to make sure your policy keeps up with your dreams.

Is car insurance required by law?

Almost every state requires drivers to carry car insurance. While your state sets minimum liability requirements, these may not be enough to cover serious accidents or injuries. Consider choosing coverage that goes beyond the basics. Your agent can help you decide on the amount of protection that’s right for you.

Here are a few tips to keep in mind:

• Always meet your state’s minimum liability requirements. According to dmv.org (Opens in a new tab), driving without insurance can lead to license and/or vehicle registration suspension, some hefty fines, and higher insurance premiums down the road.
• If you have a lease or loan on a car, collision and comprehensive coverage are typically required. The potential financial burden of having to repair or replace a vehicle you still owe money on makes these smart coverage choices.
• Collisions that cause injuries to others can result in big medical bills. The Insurance Information Institute (Opens in a new tab) recommends carrying at least $100,000 per person and $300,000 per accident in bodily injury liability coverage. in bodily injury liability coverage.

Don’t forget to always keep proof of insurance in your vehicle. If you’re pulled over, you could get a ticket for not having it available to show the officer.

Managing your policy

Many insurance companies have apps offering quick access to your insurance information — anytime, anywhere. At American Family, we make it easier than ever to manage your insurance on the go. Simply download the MyAmFam app on your smartphone to view your insurance cards, request roadside assistance, check payment status, and more.

Prefer to manage things online? Sign up for My Account to view your policy or insurance cards, make payments, file and review claims, and manage your bills.

How to pay for car insurance

Your premium is the regular payment you make to stay insured. Typically, you can choose to pay monthly or in full — and many companies offer a discount if you pay for the entire term upfront. Ask your agent if you’re eligible.

If you miss a payment, your policy may lapse (become inactive). While most insurers offer a short grace period, keep in mind that missed payments and lapses can result in additional surcharges that increase the cost of your insurance.

Want to make payments effortless? Set up automatic payments in My Account so you never miss a due date.

What is a deductible?

A deductible is the amount you agree to pay out of pocket for repairs before your insurance steps in to help cover the rest in a covered loss. Depending on your coverage selections, you can choose a deductible amount when you buy your policy.

Do you always have to pay a deductible? Nope! Typically, deductibles apply to comprehensive and collision coverage, not liability. Here’s more info about deductibles, including some example scenarios that show how they work.

Why do you need roadside assistance coverage?

When the unexpected happens, emergency roadside assistance coverage is an affordable add-on to your policy that helps get you back on the road quickly.

If you get locked out of your car or need a tow, jump-start, or flat tire changed, American Family’s 24/7 Emergency Roadside Service is there to get you moving and give you peace of mind.

How you can personalize your auto rate

Many insurance companies now offer usage-based insurance (UBI) programs to help you tailor your coverage to your driving habits. Why? Because people who drive safely and drive fewer miles tend to have fewer accidents — and that should be rewarded.

At American Family, we offer two UBI options to personalize your rate and potentially save you money:

DriveMyWay — Using smart technology, DriveMyWay helps you customize your rate through your driving habits. The better you drive and take advantage of the program tips to improve, the more you could save. It’s a simple way to turn everyday journeys into opportunities to protect you and others on the road — and receive personalized savings.

MilesMyWay — MilesMyWay is designed for drivers who want flexibility and savings based on how often they drive. The less you drive, the more you can save. If you’re a low-mileage driver, it’s a smart, convenient way to enjoy the coverage and support you expect with a rate that’s in step with your lifestyle.

Additional ways to save money on car insurance

There are lots of other great ways to save on your auto insurance. Check out these strategies to lower your premium and keep more cash in your wallet:

Improve your credit score. In the months before buying your own policy, work on boosting your score to help qualify for lower rates.

Choose the right deductible. Selecting a higher deductible could lead to a decrease in your premium.

Ask about discounts. Many companies offer discounts for simple efforts — like paying in full, bundling policies, having a good driving record, or maintaining good grades if you’re a student. Ask your agent if you’re eligible for any available discounts.

Getting a car insurance quote

Ready for your first quote? At American Family Insurance, we’re 100% focused on helping you protect what matters most. You’ll get:

• A local agent who understands your needs and how best to support you
• Claims specialists ready to help keep things running smoothly
• A convenient, easy-to-use online option to submit your claim
• 24/7 phone support to keep your claim moving

Get a personalized insurance quote online or connect with your American Family Insurance agent — they’re ready to help make sure your first car insurance policy provides personalized protection that’s right for you.

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This article is for informational purposes only and based on information that is widely available. This information does not, and is not intended to, constitute legal or financial advice. You should contact a professional for advice specific to your situation.

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.

Discount and savings amounts and product eligibility will vary by state, property type, policy form and company underwriting the policy. Discounts may not apply to all coverages. Some restrictions may apply.